Spending on digital transformation projects is expected to more than double over the next four years in Turkey, the Middle East and Africa, according to a report released this week by the International Data Corporation (IDC).
The firm explained that both public and private sector spending on digital transformation projects and other related initiatives in the region will expand by a compound annual growth rate of 16 per cent by 2026, by which time it is expected to exceed $74 billion, accounting for 43.2 per cent of all ICT investments made during that year.
“For many organisations, the digital and tech investments they made during the pandemic to build resilience could be put to test in 2023 across key business dimensions such as customer experience, operations, and financial management, among others,” IDC’s group vice president and regional managing director for the META region Jyoti Lalchandani said.
“The implementation of further digitalisation in critical areas and a more rapid shift to a ‘digital business’ approach will be key to separating the thrivers from the survivors,” he added.
In terms of the global market, regarding the digital transformation segment, IDC said that it expects spending on digital technology by companies and organisations to grow at eight times the rate of the economy as a whole in 2023.
In addition, the company explained that this will allow organisations to create a stable foundation, facilitating operational excellence, competitive differentiation, and growth in the long term.
“No matter what the economy throws at us over the coming 12 months, organisations must not lose sight of their digital aspirations, so the focus should be on enabling clear and measurable outcomes, and digital spending needs to transition from building to scaling,” Lalchandani said.
“Indeed, IDC predicts that by 2027, at least 30 per cent of the C-suite’s focus will be on scaling innovation and operating a truly digital business. Automation will sit at the heart of this process, helping to reduce the cost of IT operations, address labour shortages, and increase the velocity of innovation,” the director concluded.