Digital and information technologies are playing a leading role in making businesses more agile and flexible. This is particularly true over the past couple years or so, which have been all about staying in business, and adopting digitalization at a mind boggling pace.
In a recent forecast released by research giant Gartner, it is estimated that the global IT spending in the year 2022 will touch a whopping US $4.5 Trillion. This translates into a Year on Year (YoY) growth rate of 5.1%, when compared to the year 2021.
The rapid evolution and innovation in the digital market space is what will primarily be driving IT spending during the year 2022. What makes this growth forecast even more interesting is that we have lately seen a major spike in the global pandemic.
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Just as things appeared to be settling down, and returning to some degree of normalcy, we have started witnessing very high infection rates across the globe. This growth projection is really significant in the backdrop of this recent surge in Covid-19 cases globally.
The Rising Role of the CIO
According to Gartner, the year 2022 will be seen more like a “return of the Chief Information Officer (CIO)” within organizations. So far, most CIOs have mainly been busy in “firefighting”, and giving businesses some degree of continuity amidst these testing times.
However, all this is about to change, as we have already set foot in the year 2022. Now, CIOs will be at the forefront of contemplating, designing and executing long term digital plans and strategies for their respective organizations.
However, Gartner has also highlighted some important challenges which will pose serious challenges for CIOs, as they try to put their digital strategies and plans into action. Some of those limiting factors are discussed below.
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Staff Skills Gap
This is an area which is likely to create a major gap in terms of the pace that CIOs have in their minds, and the progress that is actually achieved on the ground. Employee capacity building is something that is both resource and time intensive.
Wage Inflation
The issue of rising, and even super competitive compensations being offered to the right IT professionals will also impact the ability of CIOs to bring in the right talent. What will be even more challenging is the ability of CIOs to retain this talent for tangible results.
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War for Talent
This factor is closely related to the issue of wage inflation that we have highlighted above. When enterprises want to accomplish digital transformation initiatives on a fast track basis, they can at times offer too high compensations to the right professionals.
The result is a “war for talent”, in which each CIO would be trying to out-bid another entity. However, Gartner estimates that this hiring environment will also create another opportunity in the market, in the form of consultancies and Managed Service Providers.
CIOs will turn to Consultancies and MSPs
According to Gartner’s estimates, this “over-heated” job’s market for IT and digital transformation professionals will push CIOs across the globe to engage the services of various consultancies and Managed Service Providers (MSP).
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The Cloud Becomes Pivotal to Digitalization
As per Gartner’s estimates, Cloud Computing will be playing a pivotal role in helping enterprises achieve speedy and secure digitalization. The public cloud will otherwise serve as the best staging ground for remote and hybrid workforce models.
Within the enterprise software market, the size of the cloud computing based market has surpassed the non-cloud market for the very first time. The cloud based Software as a Service (SaaS) model is driving digitalization initiatives at a fast pace.
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Conclusion
Gartner estimates that by the year 2025, the size of the global SaaS market will become double that of the non-cloud market, pointing towards a major shift in trends. However, enterprises will need to leverage the expertise of consultancies and MSPs.
From the latest Gartner’s forecast, we can easily infer that Cloud Computing technologies will be playing a key role in providing both Business Continuity (BC) and the right platform for undertaking fast track digitalization initiatives.
Over the mid term though, enterprises might have to reduce their reliance on consultancies and Managed Service Providers (MSP). This in turn will enable enterprises to proceed with cloud driven business and digitalization initiatives as per their specific needs.
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