IDC finds that the future of spending on labor technology will reach $ 656 billion in 2021

A new IDC spending guide predicts that organizations will spend nearly $ 656 billion on Future Work (FoW) technologies by 2021, an increase of 17.4% over 2020.

They are IDC. All aspects of how people and organizations work are evolving, thanks to third-party technologies such as cloud and mobile computing and accelerated by the COVID-19 pandemic.

According to analysts, FoW is a fundamental shift in the work model toward one that fosters human-machine collaboration, enables new skills and work experiences, and supports a work environment that is bound neither by time nor by physical space.

To facilitate the transition to the new workplace and an evolving workforce, organizations are investing in a wide range of technologies and services.

The largest investment area in 2021 will be hardware, where companies are expected to acquire $ 228 billion in endpoint devices, business hardware, infrastructure as a service (IaaS) and robotics and drones.

IDC finds that services, including business, IT and connectivity services, will be the second largest spending area at more than $ 123 billion.

The software will experience the fastest growth in spending with a compound annual growth rate (CAGR) of 21.3% during the 2020-2024 forecast period.

This includes investments in business applications, content and collaboration, analytics and artificial intelligence, human resource applications, security and software development and deployment.

Together, discrete and process manufacturing will account for just over a third of FoW spending this year, according to IDC.

Professional services, retail and banking will be the next three industries in terms of FoW spending in 2021.

The construction industry will experience the fastest growth in FoW spending over the forecast period with a five-year CAGR of 23.7%. The media and retail will follow closely with the CAGRs of 19.5% and 19.3% respectively.

The use cases of FoW that will benefit from the highest spending in 2021 include collaborative robotics, operational performance management, and automated customer management.

Use cases that are expected to experience the fastest growth in spending during the 2020-2024 forecast period are the development of adaptive skills, interconnected collaborative workspaces, and advanced project management.

IDC analysts commented on spending forecasts and key trends that define FoW.

Holly Muscolino, according to the content strategies and future work of the IDC research vice president, says: “Traditional work models do not provide the agility, scalability and resilience that the future company requires. This, of course, was made clear by the ongoing health crisis.

“To drive growth and competitive differentiation, organizations will invest in technologies and services that drive automation, human-machine collaboration, new organizational structures and leadership styles, dynamic learning opportunities, a reinvented workplace and a digital work environment that is not limited by time or physical location. “

Eileen Smith, vice president of the IDC program, analyzes and analyzes clients: “Emerging technologies such as artificial intelligence, the Internet of Things, and augmented / virtual reality are changing the way we work in all industries and worldwide.

“Seeking automated support for virtual collaborative decision-making and approaches, discrete and process manufacturing, the two largest investors in FoW technology during the planned period, invest in key use cases such as collaborative robotics, operational performance management and the design and review of digital and 3D products and improved cost control and greater process efficiency. “

Karen Massey, IDC’s director of research, analyzes and analyzes customers, concludes: “IDC expects investment in technologies to support FoW initiatives to exceed $ 1 trillion worldwide in 2024 with a robust CAGR of 17% during the five-year forecast period.

“All aspects of how people and organizations work are evolving, thanks to third platform technologies and accelerated by the pandemic.

“In fact, third-platform hardware, such as IoT devices, robots and drones, and IaaS, account for more than a third of total spending, demonstrating the growing importance of technologies for reinventing the workplace.” .

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