COVID-19 impact on digital transformation spending 2020

Worldwide spending on digital transformation (DX) technologies and services is expected to increase by 10.4 percent in 2020 to 1.3 trillion U.S. dollars, despite the challenges presented by the COVID-19 pandemic. Across different sectors, DX spending will see compromised yet still strong growth, ranging from eight to 13.8 percent.

Digital transformation

   Digital transformation (DX) can be defined as the integration of digital technologies in all areas of a business that lead to improved operational processes as well as more value being delivered to customers. DX enables a more agile and intelligent way of doing business, making use of technologies such as advanced analytics and artificial intelligence (AI). The global digital transformation market has been growing rapidly in recent years and is forecast to be worth 2.3 trillion U.S. dollars by 2023.

A global embrace of digital transformation amidst COVID-19

    Most digital decision-makers worldwide believe the coronavirus (COVID-19) outbreak will accelerate the pace of digital transformation. Working from home is expected to be much more accepted in companies post COVID-19, as well as the use of communication and collaboration tools. In line with these changes, businesses are also looking to bolster employee digital experience as they seek to increase operational efficiency and transform existing business processes. The pandemic has resulted in businesses worldwide embracing digital transformation technologies and services, although some still predict that the digital economy may likely endure a long-term revenue loss like the overall economy.