Digital technology spending to grow 3.5x in 2023 in Asia Pacific

According to the International Data Corporation (IDC), spending on digital technology by organizations  in the region in Asia/Pacific region will grow at 3.5 times the economy in 2023.

IDC argued that the traditional course of actions taken by most organisations in the face of economic recession to cut capital expenditure - extending PC and infrastructure upgrades, cutting contract staff and delaying new projects - will become less practical.

Instead, anti-recessionary actions will consist of adopting as-a-service delivery and operating models, leveraging contract staff to address labour shortages, and focusing on high-impact digital business projects in the coming year.

Company executives will not only have to adopt digital strategies and use technologies to complete and implement digital innovation programs and digital business initiatives that improve profit, accelerate revenue growth and create quantifiable business value, but they will also need to transform their enterprises into resilient digital businesses.

The market intelligence firm is making this prediction based on analysis that more organisations will adopt the use of digital technology to establish a recession-proof business and build a foundation for operational excellence, competitive differentiation and long-term growth.

It also added that by 2026, 40% of total revenue for top Asia-based 2000 organizations will be generated by digital products, services, and experiences, explaining that digital-first CIOs will need to redefine their enterprise value in the digital business era by creating financial, ecosystem and ESG/sustainability impact for this to happen.