Larger scale digital transformation projects are expected to be unlikely in 2021 due to enterprises taking a conservative approach with their IT spending in 2020, but there is still room for some tech companies to thrive.
The claim comes from research firm GlobalData and its Tech, Media & Telecom Themes 2021 report, which stated that IT service providers, infrastructure and application software developers have the potential to see success in the year ahead, as long as enterprises pick up the importance of accelerating digital transformation projects in 2021.
The firm said that the move to remote operations as a means to mitigate the COVID-19 pandemic should urge organisations to accelerate their digital transformation projects.
“Targeted, tactical digital transformation will be vital for companies to survive in the new world,” said Cyrus Mewawalla, head of thematic research at GlobalData. “This is good news for IT services, infrastructure and application software companies, which have struggled in 2020 as many enterprise IT projects have been delayed, scaled back, or cancelled.
“The way we work, shop, eat, seek medical advice, socialise, and entertain ourselves has fundamentally changed, and there is no going back. Like all industries, the technology, media, and telecoms sector must plan for multiple eventualities.”
To assist with the economic economy following COVID-19, GlobalData predicts that companies will utilise multiple technologies in the process, with the firm pointing towards cyber security, cloud computing, automation, internet of things (IoT) and artificial intelligence (AI) as examples.
“For example, robots will increasingly be used to perform a broad range of functions, from cleaning supermarkets and offices to delivering packages and even offering comfort and support to the sick,” the firm predicted in a statement," the firm claimed.
“Meanwhile, AI is already being used to automate routine business processes, saving time, reducing operating costs, cutting out errors, and increasing productivity. Automating mundane day-to-day activities and obligations contributes to more efficient use of labor, with workers able to focus their time on higher-value tasks.”
For those enterprises that delay digital transformation projects in 2021, GlobalData warned that they could see some serious technical stagnation in their future. As an example, GlobalData pointed to Intel’s decision in the 2008 recession to continue to invest in research and development, which saw it move “several years ahead” of its competitors.
"The company was adamant that you cannot save your way out of a recession,” the firm stated.