IDC-FutureScape: IT trends from 2023

The IDC FutureScape 2023 sees As-a-Service products and processes and connected technologies as two of the most important developments in the technology industry in the next 2-3 years.


In the latest edition of their FutureScape report, the market researchers from International Data Corporation (IDC) dare to forecast the development of the global IT industry from 2023 onwards. Specifically, they examined how external factors will affect the business ecosystems in the the next 2 to 3 years and what conclusions can be drawn from this. The experts see as-a-service processes and smart products as the big winners.

In the following, we would like to briefly present the ten most important forecasts from the study.

1. Emergence of as-a-service processes and intelligent products.
IDC expects the number of tech companies in the G500 to double in the next five years. Their increased focus on aaS elements such as improved customer experiences or intelligent process automation in connection with digitally optimized products will dominate IT budgets in the future.

2. Increase in networked technologies.
One of the most visible developments in the IT industry over the next few years will be the increased deployment of connected technologies. According to IDC, the cost aspects should be the decisive factor here, but other advantages should favor this development – including improved digital resilience, faster access to innovative technologies at large scale, as well as the simplification of systems and the reduction of technical debt.

3. Skills shortages will limit the benefits of IT investments.
Both companies and IT providers will need to invest in developing the necessary skills in the areas of technology, collaboration and critical thinking. According to Rick Villars, Group Vice President of Worldwide Research at IDC, business strategy and learning strategy will need to go hand-in-hand with technology strategy to overcome the current challenges in finding the talent and skills needed for digital business.

4. Digital sovereignty will impact staff, budgets and operational processes.
Cloud and as-a-service offerings will be at the heart of developments in digital sovereignty. Security and residency requirements are likely to drive some IaaS/PaaS workloads to local cloud providers, while sustainable operations mandates will increase interest in sovereign offerings (with local partners) from global cloud providers.

5. Rapid growth in aaS spend drives greater attention.
One of the key benefits of using aaS effectively is a significant and sustained reduction in operational burdens, as well as much faster access to innovation. Efforts to contain spending must focus on assessing which services deliver the promised operational and innovative values.

6. Service providers can provide expertise more easily.
With the transition to more standardized, control-plane based aaS offerings and increased use of AI and automation, providers of security, data and critical industry-specific knowledge and processes will be able to expand the cost and knowledge base of very high-quality experts to larger numbers to be distributed by customers and easy to use.

7. Technology supply chains will remain a critical issue.
IDC anticipates that in 2025, a number of high-profile digital product launches will experience significant delays due to global or regional silicon and code supply chain issues. To avoid that, decision makers will push for quantifiable results from their cloud providers, invest in supply chain intelligence, and adopt multisourcing strategies.

8. The transition to control plane-based systems will not be easy.
IDC estimates that more than half of the companies attempting to leverage connected technologies will struggle with a variety of siled control systems.

9. Building trust in automation will be critical to success.
While significant risks stemming from a lack of trust may seem unlikely, their impact in terms of branding and the need to start over with trust building is significant. Building trust in automation requires a greater focus on the dynamics of human/organizational behavior – IDC-FutureScape: IT trends.

10. Machine vision will reach a new level.
For machine vision, IDC predicts vastly improved experiences in the real world. Especially those companies that establish themselves in digitally optimized work, games and health areas should have a long-term advantage in terms of customer retention and improving business results based on intelligent use of data.
Source: IDC Corporate