According to the latest forecast from International Data Corporation (IDC), digital transformation investments in the Middle East, Turkey, and Africa (META) are set to more than double across the 2021–2026 period.
Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group, the world’s leading tech media, data and marketing services company. The US-based IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets.
The global technology research firm said that digital transformation spending in the region will accelerate at a compound annual growth rate of 16 percent over the five years, topping $74 billion in 2026 and accounting for 43.2 percent of all information and computer technology (ICT) investments made that year.
Mr. Jyoti Lalchandani, IDC’s group vice president and regional managing director for the META region, said that “For many organizations, 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 group vice president noted that “the implementation of further digitalization 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, organizations 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 scaling. Indeed, IDC predicts that by 2027, at least 30 percent 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,” Mr. Lalchandani added.
Further, IDC anticipates that spending on digital technology by organizations globally to grow at eight times the economy in 2023, establishing a foundation for organizations to drive operational excellence, competitive differentiation, and long-term growth.