IDC Reveals Its 2022 IT Industry Predictions For Australia And New Zealand

Global technology market research company IDC has published its 2022 Top 10 IT Industry trends for Australia and New Zealand. The report, IDC FutureScape: Worldwide IT Industry 2022 Predictions – Australia and New Zealand (ANZ) Implications, provides IDC's vision for how ANZ organisations will deploy and consume technology over the next five years, contributing to the growth of the digital economy.

The overarching theme is how organisations are leveraging their investment in digital resilience to transform into digital first organisations. In a recent IDC survey 87% of ANZ organisations said the pandemic
was the catalyst for shifting to a digital-first strategy, an extraordinary migration of mindset. At the same time, businesses are faced with crosswinds of changing societal norms, sustainability imperatives, systemic industry change, and new digital-first ready players in the market.

"Organisations that can harness the turbulence, will gain the advantage. They will leap ahead of the competition to capture those rare opportunities associated with systemic industry change”, says Louise Francis, Country Manager, IDC New Zealand. “Digital first is an aspiration and a representation of the culture of the organisation. It is not about technology or business models deployed. It is an approach to apply to every business activity or investment decision to meet the head and cross winds in 2022 and beyond”.

IDC ANZ’s top ten IT industry predictions are:

1. Digital first drivers targeting customer experience and operating models. By 2024, digital-first enterprises in ANZ will enable empathetic customer experiences and resilient operating models by shifting 75% of all tech and services spending to as-a-service and outcomes-centric models.
2. New cloud fundamentals will be driven by business outcomes. By 2022, 40% of publicly listed ANZ organisations will reset cloud selection processes to focus on business outcomes rather than IT requirements, valuing access to providers' portfolios from device to edge and from data to ecosystem.
3. Governance readiness becomes a critical capability. By 2023, 75% of ANZ enterprises will use AI-assisted, cloud-linked governance services to manage, optimise, and secure dispersed resources/data, but 70% will not achieve full value due to it skills mismatches.
4. Portfolio inflation dangers emerge with everything ‘as a service’. By 2022, 45% of large ANZ enterprises' IT budgets will be redistributed due to adoption of integrated as-a-service bundles in areas of security, cloud platforms, virtual workspace, and connectivity.
5. Systemic industry change is on the horizon. By 2026, industry leaders in ANZ facing systemic or mandated transitions in the coming decade triple IT spend for new environments but struggle to achieve the needed 6x gains in IT operational efficiency.
6. Augmentation will trump automation. By 2024, 65% of publicly listed ANZ organisations will gain twice as much, in terms of meaningful returns, on tech investments that augment employee/customer activities compared with ones that automate individual processes.
7. Digital sovereignty compels data governance restructures. By 2026, regional divergences in data privacy, security, and placement/use/disclosure mandates will force 80% of ANZ enterprises to restructure their data governance processes built on an autonomic foundation.
8. Back to physical will redefine customer and employee experience to counter virtual fatigue. By 2023, 40% of publicly listed ANZ businesses will shift half of their new technology hardware/connectivity spending to modernise and reconceptualise in-person experiences for customers and employees in their own locations.
9. Digital sustainability will come of age. By 2025, 65% of publicly listed ANZ organisations will have digital sustainability teams, tasked with assessing, certifying, and coordinating use of business and IT sustainability data and analytic platforms offered by ICT providers.
10. Data controls will need to be tested and substantiated. By 2025, public enterprises' valuations in ANZ will be based as much on confidence in data controls for proper/effective use of data as in financial controls, focusing increased spend on data-centric solutions.

These predictions are discussed in greater detail in the new IDC FutureScape report, IDC FutureScape : Worldwide IT Industry 2022 Predictions — Australia and New Zealand Implications ", (IDC #AP47748122). Each year, IDC releases its top predictions through its IDC FutureScape reports to give a view of what is on the short and long term horizon for the rapidly changing ICT industry. These predictions are used to shape the strategies and business objectives of technology leaders and business executives in the next 1-5 years.

In case you missed IDC FutureScape Australia and New Zealand 2022 webinar in December, you may visit IDC Arena to the presentation to hear from Louise Francis, Country Manager IDC New Zealand and Hugh Ujhazy, IDC Vice President, IoT and Telecommunications, Asia Pacific. IDC Arena is IDC’s integrated content hub that takes IDC thought leadership events online, and exclusive analyst essential guidance videos on-demand.

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