2023's economic outlook for the Asia/Pacific excluding Japan (APeJ) region is pessimistic compared to the global average, according to IDC. Despite this, businesses in the APeJ have upheld stable IT spending plans while investing in their digital readiness. In the upcoming years, organizations in the region will prioritize their digital transformation projects and partner with reputable IT service providers for successful outcomes.
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Businesses in the APeJ region are placing significant emphasis on Environmental, Social, and Governance (ESG) as a crucial risk mitigation strategy for long-term viability. This trend will lead to an increase in ESG investments by corporate entities to build sustainability into their brand identity. As a result, there is a growing need for IT service providers who can offer expertise in this area.
Enterprises are seeking IT service providers capable of staying ahead of the ever-evolving business environment. IDC finds that their success will depend not only on technical capabilities but also on their capacity to anticipate and overcome challenges proactively under volatile and uncertain conditions.
Top 10 IT and business services trends and opportunities in APeJ include the acceleration of cybersecurity measures, DX becoming a digital business, and the rising importance of crisis management. The drive for digital transformation will lead to increased outsourcing to compensate for the skills gap and mitigate employee attrition. Additionally, enterprises will partner strategically with tech vendors and advisory firms to bridge the gap between current workforce skillsets and demanded abilities. Finally, the hybrid cloud market is expected to surpass $10 billion by 2026, as more enterprises shift towards public clouds as primary providers.
By 2025, robots will perform a quarter of all operational tasks.
The digital transformation is happening at different speeds across cities and countries. Being able to identify and adapt to new trends in real-time is essential for success in the digital economy.
The Softline Digital Laboratory analyzes consumer, technological, and industry trends to identify opportunities for customer business growth. This helps our team create successful digital products for our customers.
Globalization has accelerated economic interconnectivity, resulting in a single market, information space, and liberalization of world trade. Increased competition has led to the formation of sustainable business models that use resources efficiently. This has led companies to form ecosystems of suppliers, partners, consumers, and competitors.
Lean consumption has given rise to the Economy of Shared Consumption model, which promotes access to goods and services rather than ownership. A peer-to-peer model includes joint creation, production, distribution, trade, and consumption of goods and services by different people and organizations.
The shift towards digital transformation is a significant trend in the business landscape, with enterprises increasingly focusing on becoming digital businesses. According to IDC, by 2026, it is projected that around 40% of enterprise revenue will come from digital products and services.
To achieve this transformation, enterprises are adopting a holistic approach known as Enterprise Digital Transformation (DX). This involves leveraging technology to reshape business processes, enhance customer experiences, and drive innovation across all aspects of the organization.
Enterprise DX encompasses various components, including digitizing core operations, implementing advanced analytics and artificial intelligence, adopting agile methodologies, and embracing cloud computing and hybrid IT infrastructures. It also involves integrating new technologies such as the Internet of Things (IoT), automation, and blockchain into existing systems.
By embarking on the journey towards becoming a digital business, enterprises aim to gain a competitive edge in the rapidly evolving market. They strive to deliver seamless digital experiences to customers, optimize internal operations, and unlock new revenue streams.
Furthermore, the COVID-19 pandemic has accelerated the need for digital transformation, as businesses have had to adapt quickly to remote work, virtual collaboration, and online service delivery. This shift has highlighted the importance of agility, resilience, and embracing digital technologies to ensure business continuity and growth.
However, digital transformation is not just about technology. It requires a cultural shift within organizations, with a focus on change management, upskilling employees, fostering a digital-first mindset, and developing a customer-centric approach.
Enterprises that successfully navigate the digital transformation journey can expect numerous benefits, including improved operational efficiency, enhanced customer engagement, increased innovation, and ultimately, growth in revenue and market share.
As the world becomes increasingly digital, the expectation for businesses to evolve into digital entities will continue to grow. The projection that 40% of enterprise revenue will be generated from digital products and services by 2026 underscores the urgency and the vast potential that embracing digital transformation holds for organizations across industries.