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IDC reveals its top 10 IT industry trends for Australia and New Zealand - report

By Ryan Morris-Reade
Thu 27 Jan 2022

IDC has published a report with 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, reveals IDC's vision of how ANZ organisations will deploy and consume technology over the next five years, contributing to the growth of the digital economy.

The report focuses on how organisations leverage their digital resilience investment 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, a large 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 IDC New Zealand country manager, Louise Francis. 

"Digital-first is an aspiration and a representation of the organisation's culture. 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 crosswinds in 2022 and beyond."

IDC ANZ's top ten IT industry predictions are:

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.

Business outcomes will drive new cloud fundamentals
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.

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 or data, but 70% will not achieve full value due to skill mismatches.

Portfolio inflation dangers emerge with everything 'as a service'
By 2022, 45% of large ANZ enterprises' IT budgets will be redistributed due to the adoption of integrated as-a-service bundles in security, cloud platforms, virtual workspace, and connectivity.

Systemic industry change is on the horizon
By 2026, industry leaders in ANZ are 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.

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 or customer activities compared with ones that automate individual processes.

Digital sovereignty compels data governance restructures
By 2026, regional divergences in data privacy, security, placement, use, or disclosure mandates will force 80% of ANZ enterprises to restructure their data governance processes built on an autonomic foundation.

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 or connectivity spending to modernise and reconceptualise in-person experiences for customers and employees in their locations.

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 the use of business and IT sustainability data and analytic platforms offered by ICT providers.

Data controls will need to be tested and substantiated
By 2025, public enterprises' valuations in ANZ will be based on confidence in data controls for proper or effective use of data as in financial controls, focusing increased spend on data-centric solutions.

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