Skip to main content

Distributed Workforce Solutions Fuel New IT Spending

When, where, and how knowledge workers perform their role continues to evolve, as the COVID-19 pandemic disruption impacts the Global Networked Economy. Now, the Future of Work (FoW) model enables improved employee experiences in an environment unbounded by time or physical space.

According to the latest worldwide market study by International Data Corporation (IDC), FoW spending will be nearly $656 billion in 2021 -- that's an increase of 17.4 percent over 2020.

"Traditional work models do not provide the agility, scalability, and resilience required by the future enterprise. This was, of course, highlighted by the ongoing health crisis. To drive growth and competitive differentiation, organizations will invest in technologies and services," said Holly Muscolino, vice president at IDC.

Future of Work Market Development

To facilitate the transition to a fully distributed workforce, organizations are investing in a wide range of solutions. The largest area of investment in 2021 will be hardware, where companies are expected to purchase $228 billion in endpoint devices, enterprise hardware, infrastructure as a service (IaaS), and robotics or drones.

Services, including business, IT, and connectivity services, will be the second-largest area of spending at more than $123 billion. Software applications will see the fastest spending growth with a compound annual growth rate (CAGR) of 21.3 percent over the 2020-2024 forecast period.

This includes investments in enterprise applications, content and collaboration, analytics and artificial intelligence (AI), human resources applications, security, and software development and deployment.

Emerging technologies like AI, the Internet of Things (IoT), and augmented or virtual reality are changing how work is performed across all industries. Automated decision support and virtual collaborative approaches, plus discrete and process manufacturing, are the two largest growth areas over the forecast period.

Together, discrete and process manufacturing will account for just over one-third of all FoW spending this year. Professional services, retail, and banking will be the next three industries in terms of FoW spend in 2021.

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

The FoW use cases that will benefit from the most IT spending during 2021 include collaborative robotics, operational performance management, and automated customer management.

The FoW use cases that are expected to see the fastest spending growth over the 2020-2024 forecast period are adaptive skill development, interconnected collaborative digital workspaces, and advanced project management.

Outlook for Future of Work Investment Growth

IDC forecasts investment in technologies supporting FoW initiatives to exceed $1 trillion worldwide by 2024 with a robust 17 percent CAGR over the five-year forecast period. According to the IDC assessment, all aspects of how people work are evolving, enabled by new technologies, and accelerated by the global pandemic.

"Indeed 3rd Platform hardware, such as IoT devices, robots and drones, and IaaS, is more than one-third of the total spend, demonstrating the growing importance of the technologies enabling the reimagined workplace," said Karen Massey, research manager at IDC.

Based upon the mounting evidence that an IT and networking 'return to normal' mindset is delusional, I anticipate more CIOs and CTOs will seek the guidance of forward-thinking IT vendors and professional service providers that are experienced in the development of digital business growth strategies.

Furthermore, I expect Line of Business (LoB) leaders will continue their quest for scalable and secure digital workspace platforms that support the rapid and ongoing transition to a distributed workforce. Change management skills will be in high demand, as more organizations free themselves from the productivity-sapping constraints of the past.

Popular posts from this blog

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of

Global Pandemic Accelerates the Evolution of Transportation

Given the current trends across the globe, organizations that depend upon the continued growth of personal vehicle ownership will need to consider a plan-B scenario. While some companies will be able to adapt, others may find that their traditional business model has been totally disrupted. According to the latest worldwide market study by Juniper Research, Mobility-as-a-Service (MaaS) will displace over 2.2 billion private car journeys by 2025 -- that's rising from 471 million in 2021. Juniper believes that for MaaS to enjoy widespread adoption, subscription or on-the-go packages need to offer a strong combination of transport modes along with feasible infrastructure changes, high potential for data collection and low barriers to MaaS deployments. Mobility-as-a-Service Market Development The concept of MaaS involves the provision of multi-modal end-to-end travel services through a single platform by which users can determine the best route and price according to real-time traffic