The IDC Worldwide Black Book: 3rd Platform Edition reveals that the recent acceleration in digital investments sets Asia/Pacific (excluding Japan) ahead of the rest of the world.
Investments in new technologies such as artificial intelligence, robotics, IoT, AR/VR, and blockchain are expected to contribute close to 40% of total ICT investments by the end of the forecast period from around 30% in 2020.
Compared to other regions, this is the highest and represents close to 18% growth in dollar terms during the forecast period of 2021-25.
"The pandemic induced digital-first shift in the region led to increased investments in new technologies and will continue to do so in the foreseeable future," says Vinay Gupta, research director at IDC IT spending guides, customer insights & analysis.
He added that enterprises that have realized the business gain will find it difficult to undo these initiatives. “Those still sitting on the sidelines will recognise that the world has moved on", he continued.
Traditional ICT spending on hardware, software, services, and telecom has two facets: revenue from legacy categories is stagnating or declining, while growth will come from cloud, mobile, big data analytics, and social. Savings secured by enterprises post deploying cloud or analytic solutions is reinvested in new technologies.
In developing economies of Asia Pacific, the story is a bit different. Having skipped the earlier phase of technology investments, enterprises are investing in these new technologies seeing the benefits gained by their brethren in developed economies.
“New Technologies have seen accelerated acceptance due to the faster adoption of the digital journey. Organizations are now poised to take a chance to have a change or be the change for their customers. Interaction and bundling within these technologies will be more effective for their future.” says Mario Allen Clement, senior market analyst at IDC IT spending guides, customer insights & analysis.