In the Middle East, Turkey, and Africa (META), digital transformation investments are expected to more than double between 2021 and 2026, according to the most recent prediction from International Data Corporation (IDC).
According to the international technology research, consulting, and events company, regional spending on digital transformation will increase at a compound annual growth rate (CAGR) of 16% over the next five years, reaching $74 billion in 2026 and making up 43.2% of all ICT investments made in that year.
Jyoti Lalchandani, Group Vice President and Regional Managing Director for META at IDC, stated: “For many organisations, the digital and tech investments they made during the pandemic to build resilience could be put to test in 2023 across key business dimensions such as customer experience, operations, and financial management, among others. The implementation of further digitalisation in critical areas and a more rapid shift to a ‘digital business’ approach will be key to separating the thrivers from the survivors.”
“No matter what the economy throws at us over the coming 12 months, organisations must not lose sight of their digital aspirations. The focus should be on enabling clear and measurable outcomes, and digital spending needs to transition from building to scale. Indeed, IDC predicts that by 2027, at least 30 per cent of the C-suite’s focus will be on scaling innovation and operating a truly digital business. Automation will sit at the heart of this process, helping to reduce the cost of IT operations, address labor shortages, and increase the velocity of innovation.”
IDC anticipates that in 2023, enterprises will spend eight times as much on digital technology as the economy does, laying the groundwork for them to promote operational excellence, competitive differentiation, and long-term success.
At IDC Directions 2023 Middle East, Turkey and Africa, IDC will elaborate on these findings while hosting the most important technology vendors, telecoms operators, and IT service providers in the META area.
