IDC predicts by 2023, 1 in 3 firms to generate 30% of sales from digital products

As per the IDC report, one in three companies globally will generate more than 30% of their revenues from digital products and services by 2023 which will be led by organisations in the Asia-Pacific region.

The unprecedented rate of digital transformation (DX) acceleration over the past year has ushered in a digital-first world, powered by an increasingly digital-first economy with Asia-Pacific organisations at its forefront.

"Such an economy expands the impact of digital technologies on the production and consumption of products and services, resulting in at least 65% of Asia-Pacific's GDP being digitised by 2022," the IDC forecasts.

As enterprises are heading towards digital-first state, the spending on DX technology is expected to grow two times faster than overall IT.

"As of July 2021, we have 28 per cent of organisations in Asia-Pacific already in the most progressive stages of digital transformation maturity, up from 18 per cent pre-Covid in 2019," said Sandra Ng, Group Vice President for ICT Practice, IDC Asia/Pacific.

The world is now firmly anchored in a digital-first economy.

"However, the economic and business outlook for the next 3 years remains highly fluid because of a growing range of global challenges including the pandemic. An enterprise's success in the next 12-36 months will be defined by how well it navigates these crosswinds," Ng commented.

By 2024, 55% of successful digitally innovative products will be built by teams that include people with creative, critical thinking, analysis, and automation skills as well as software engineers.

By 2023, 40% organisations will allocate half of their security budget to cross-technology ecosystems/platforms designed for rapid consumption and unified security capabilities to drive agile innovation, the report noted.

"There will be greater interdependencies between enterprises and across industries in a digital-first world. In Asia/Pacific, more than 50 per cent of organisations will see an increased spend in technologies as a result of collaborations with ecosystem partners," Ng said.