CIOs to Accelerate Digital Business Transformation in 2021

With 2020 in the rearview mirror, lastly, CIOs are greater budgets and an acceleration in their digital transformations.

After a yr of responding to a disaster, CIOs in 2021 are taking a extra proactive stance, trying to assist their organizations as they construct out digital enterprise tasks that profit from shifting markets and income alternatives in a modified economic system.

Box CEO Aaron Levie put it this manner in a recent tweet, “Most enterprises focused 2020 on remaining resilient and shifting work to remote. Now in 2021, every conversation I’m having with customers is how their business models change because of digital. Powering this is the big opportunity in enterprise software now.”

Not solely will the main focus change in 2021. CIOs may even be seeing the finances {dollars} to assist flip these targets into actuality. Whereas CFOs have been extremely centered on preserving money in the months after the pandemic and lockdowns hit a yr in the past, the pattern for expertise spending has reversed in 2021, in accordance to an IT spending outlook from Gartner.

The analyst agency is projecting worldwide IT spending of $3.9 trillion in 2021, a rise of 6.2% from 2020. Worldwide IT spending declined 3.2% in 2020 as CIOs prioritized spending on expertise and companies deemed mission-critical in the course of the preliminary phases of the pandemic, in accordance to Gartner.

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Some of that money preservation self-discipline will stay in place this yr, however IT organizations can be investing for progress, in accordance to John-David Lovelock, chief researcher and distinguished analysis VP at Gartner.

“CIOs have a balancing act to perform in 2021 — saving cash and expanding IT,” he stated. “With the economy returning to a level of certainty, companies are investing in IT in a manner consistent with their expectations for growth, not their current revenue levels. Digital business, led by projects with a short time to value, will get more money and board level attention going into 2021.”

Gartner is forecasting IT spending ranges to return to progress throughout all classes in 2021. That consists of information middle methods (6.2%), enterprise software program (8.8%), gadgets (8%), IT companies (6%), and communications companies (4.5%).

John-David Lovelock

John-David Lovelock

“Enterprises are industrializing remote work for employees as quarantine measures keep employees at home and budget stabilization allows CIOs to reinvest in assets that were sweated in 2020,” Lovelock stated.

Investing in accelerated digital enterprise transformation can be on the high of the agenda for the following few years via 2024. Areas for this funding embody cloud computing, core enterprise purposes, safety, and buyer expertise.

Gartner is forecasting 2022 progress for the next IT classes, too: information middle methods (3.4%), enterprise software program (10.2%), gadgets (1.3%), IT companies (6.3%), and communications companies (3.3%).

Automation efforts may even stay on the entrance burner as organizations look to get extra finished with the identical workforce. For occasion, many organizations have implemented chatbots to assist with all the pieces from IT assist desk points to public web sites that reply questions on COVID-19.

But count on extra of the automation and digital transformation in 2021.

“Greater levels of digitalization of internal processes, supply chain, customer and partner interactions, and service delivery is coming in 2021, enabling IT to transition from supporting the business to being the business,” Lovelock stated.

Read extra about 2021 and technique right here:

8 Work From Home Experiences We Didn’t Expect Last Year

2021: A Year of IT Career Opportunity

IT Leadership: 10 Ways the CIO Role Changed in 2020

2021 Outlook: Tackling Cloud Transformation Choices

Jessica Davis has spent a profession masking the intersection of enterprise and expertise at titles together with IDG’s Infoworld, Ziff Davis Enterprise’s eWeek and Channel Insider, and Penton Technology’s MSPmentor. She’s passionate in regards to the sensible use of enterprise intelligence, … View Full Bio

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