Skip to main content

How Savvy Pioneers Lead the Future of Work

Hybrid and fully remote work are inevitable in the Global Networked Economy where high-performance talent demands flexibility from employers. To enable these progressive work models, organizations are investing in a wide range of technologies to support more agile types of employment. 

According to the latest worldwide market study by International Data Corporation (IDC), leading organizations will spend nearly $1 billion on the Future of Work (FoW) in 2023 -- that's an increase of 18.8 percent over 2022.

Future of Work Market Development

"Work models continue to evolve, but 37 percent of decision-makers in a recent global survey note that Remote and Hybrid work models will be an embedded part of accepted work practices, supported by a continued shift to the cloud, increasingly instrumented and interconnected physical workplaces, and intelligent digital workspaces," said Holly Muscolino, group vice president at IDC.

According to the IDC assessment, organizations must make ongoing investments in digital technology to attract and retain talent, increase operational efficiency, and remain strategically competitive.

IDC defines the FoW as a fundamental change to the work model to one that fosters human-machine collaboration, enables new skills and worker experiences, and supports a reimagined physical workplace and borderless digital workspace.

IDC analysts also believe that the FoW environment must be intelligent and dynamic, connected and secure, and independent of a physical place or specific time of day. In other words, very flexible, and not rigid like the prior status quo.

The technology investments here must enable access to corporate resources and support collaboration to allow all workers to effectively contribute, whether full-time or part-time, local or remote, or permanent or temporary -- and whether human or machine.

From a technology perspective, the largest area of investment in 2023 will be hardware, where companies are expected to purchase more than $300 billion in endpoint devices, enterprise hardware, infrastructure as a service (IaaS), and robotics and drones.

Software will be the second-largest area of spending this year at more than $276 billion. This includes investments in enterprise applications, content and collaboration, analytics and artificial intelligence, human resources applications, security, and software development and deployment.

Software will also see the fastest spending growth with a CAGR of 21.7 percent over the five-year forecast period. IT services and business services in support of FoW efforts will be more than $185 billion combined in 2023.

Outlook for Future of Work Technology Growth

The investment organizations are making in FoW technologies worldwide will exceed $1.5 billion by 2026, with growth in the Asia-Pacific (excluding Japan and China) region, and China (PRC) outpacing other regions.

Discrete manufacturing, process manufacturing, and professional services are the largest industries, controlling just over 40 percent of the FoW IT spend. Collaborative robotics, automated customer management, and interconnected collaborative workspace top the list of use cases.

That said, I believe there will be continued mounting pressure in some sectors of the economy to return to normal (typically return-to-office mandates) that will separate the savvy pioneers from the legacy laggards.

Eventually, I foresee that CEOs will routinely embrace flexible working models, but first, they will need to reassure middle managers that they can learn the skills to lead an 'Anywhere Workforce'. Once legacy middle managers accept the inevitable change, then FoW progress will become commonplace.

Popular posts from this blog

Human Resource Transformation Enabled by IT

Many senior executives are taking a proactive approach to digital business transformation in order to achieve their strategic goals. Delivering revenue growth and profitability is now imperative for every function, including Human Resources (HR). The top 3 priority HR technologies this year are skills management, learning experience platforms, and internal talent marketplaces, according to the latest worldwide market study by Gartner. "With a tumultuous global economy, HR technology leaders face a balancing act in 2023," said Sam Grinter, director at Gartner . "Leaders must anticipate greater levels of accountability and demand for measurable outcomes to justify new technology investments." HR Transformation Market Development Forty-four percent of HR leaders report driving better business outcomes is their number one strategic priority for HR technology transformation over the next three years. Growth in headcount and skills (26 percent) and cost optimization (17 p

Virtual Reality Market Set to Reach $100 Billion

Virtual Reality (VR) market growth is now finally coming to fruition. Thanks to current actions and market momentum, VR is approaching what can be considered critical mass. And, not a moment too soon. This growth momentum comes from new hardware and content releases, accelerating enterprise value recognition, and a significant metaverse wild card that could potentially lift adoption and usage. According to the latest worldwide market study by ABI Research, over 85 million VR Head Mounted Displays (HMDs) will be shipped in 2027 across consumer and enterprise segments, creating a $100 billion VR market that includes hardware, software, and services. Virtual Reality Market Development "Expectations have been high in VR for years, and even decades, without notable growth to show. That growth is finally coming over the next five years," said Eric Abbruzzese, research director at ABI Research . The barrier to entry is lower than ever, all while content performance and user experien