Digital transformation investments in the Middle East, Turkey and Africa, are set to more than double across the 2021–2026 period, according to the latest forecast from IDC. The global technology research, consulting, and events firm says that digital transformation spending in the region will accelerate at a compound annual growth rate of 16% over the five-year period, topping $74 billion in 2026 and accounting for 43.2% of all ICT investments made that year.
“For many organizations, 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,” says Jyoti Lalchandani, IDC’s group vice president and regional managing director for the META region.
“No matter what the economy throws at us over the coming 12 months, organizations must not lose sight of their digital aspirations. The focus should be on enabling clear and measurable outcomes, and digital spending needs to transition from building to scaling.”
The implementation of further digitalization in critical areas and a more rapid shift to a ‘digital business’ approach will be key to separating the thrivers from the survivors.
IDC predicts that by 2027, at least 30% 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 labor shortages, and increase the velocity of innovation.”
Globally, IDC expects spending on digital technology by organizations to grow at eight times the economy in 2023, establishing a foundation for organizations to drive operational excellence, competitive differentiation, and long-term growth.
