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IDC Forecasts $1.2 trillion Global Spending on Digital Transformation Technologies in 2017

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A new update to the ‘Worldwide Digital Transformation Spending Guide’ from International Data Corporation (IDC), forecasts worldwide spending on digital transformation (DX) technologies to be more than $1.2 trillion in 2017, an increase of 17.8% over 2016.

IDC expects DX spending to maintain this pace with a compound annual growth rate (CAGR) of 17.9% over the 2015-2020 forecast period and reaching $2.0 trillion in 2020.

“Changing competitive landscapes and consumerism are disrupting businesses and creating an imperative to invest in digital transformation, unleashing the power of information across the enterprise and thereby improving the customer experience, operational efficiencies, and optimizing the workforce,” said Eileen Smith, program director in IDC’s Customer Insights & Analysis Group. “In 2017, global organizations will spend $1.2 trillion on digital transformation with discrete and process manufacturers contributing almost 30% of this spending, while the fastest growth will come from retail, healthcare providers, insurance, and banking.”

The technology categories that will see the greatest amount of DX spending in 2017 are connectivity services, IT services, and application development & deployment (AD&D). Combined, these categories will account for nearly half of all DX spending this year.

However, investments in these categories will vary considerably from industry to industry. The discrete and process manufacturing industries, for example, will invest roughly 20% of their DX budgets in AD&D and another 12-13% in IT services while the transportation industry will devote nearly half of its spending to connectivity services.

The fastest growing technology categories associated with digital transformation over the five-year forecast are cloud infrastructure (29.4% CAGR), business services (22.0% CAGR), and applications (21.8% CAGR). And, despite a CAGR that is slower than the overall market (17.3%), AD&D spending will grow fast enough to overtake IT services as the second largest DX technology category by 2020.

More than half of all DX investments in 2017 will go toward technologies that support operating model innovations. These investments will focus on making business operations more responsive and effective by leveraging digitally-connected products/services, assets, people, and trading partners. Investments in operating model DX technologies help businesses redefine how work gets done by integrating external market connections with internal digital processes and projects.

The second largest investment area will be technologies supporting omni-experience innovations that transform how customers, partners, employees, and things communicate with each other and the products and services created to meet unique and individualized demand.

On a geographic basis, Asia/Pacific (excluding Japan) will see the largest investments in DX technologies in 2017 with 37% of the worldwide total. DX spending in this region will be led by the discrete and process manufacturing industries as well as professional services firms. The United States will be the second largest region with 30% of the worldwide total, led by professional services, discrete manufacturing, and the transportation industries. Latin America and the Middle East and Africa will experience the fastest growth in DX spending with five-year CAGRs of 23.4% and 22.6%, respectively.

“IDC’s Digital Transformation Spending Guide is a powerful tool for understanding the hardware, software and services opportunities related to digital change; this insight includes not only 3rd Platform spending, on cloud, analytics, mobile and social technologies, but also on innovation accelerators like the Internet of Things, cognitive software, and 3D printing,” said Gard Little, research director, Global Services Markets and Trends.

The Worldwide Digital Transformation Spending Guide quantifies enterprise spending on nine technology categories that will facilitate change across five areas of digital transformation. In addition to worldwide totals, spending amounts are published for eight regions and 19 vertical industries.

Unlike any other research in the industry, the DX Spending Guide was designed to help business and IT decision makers to better understand the scope and direction of investments in digital transformation over the next five years.

 

 


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E-Business

Qualified Cybersecurity Staff Shortage Among Key Obstacles in Curbing Supply Chain Risks

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A new global Kaspersky study has identified the lack of qualified IT security workers and the need for global organisations to prioritise various security tasks to mitigate the risk of supply chain and trusted relationship attacks. Both factors are cited by nearly half (42%) of the respondents.

Kaspersky’s recent study* on supply chain and trusted relationship risks showed that supply chain attacks have emerged as a top threat for businesses, with every third organisation hit by such an attack over the past year.

The severity and frequency of supply chain attacks necessitate uncovering the key reasons preventing them from addressing the risks successfully.

According to the survey, one of the key barriers to reducing supply chain and trusted relationship risks is the lack of a qualified workforce. This shortage leaves organisations without the capacity to consistently access and monitor possible third-party vulnerabilities across their ecosystems.

Among other primary obstacles, respondents noted the need to juggle multiple cybersecurity priorities. This reflects the fact that security teams are stretched across too many tasks at once, which might leave supply chain threats unaddressed.

Beyond resource constraints, respondents also point to structural issues: 39% say their contracts lack clear IT security obligations for contractors. Further 32% note that non‑IT security staff often do not fully understand these risks.

Globally, according to the survey, an overwhelming 85% of businesses admit their organisations need to upgrade protection against supply chain and trusted relationship risks, with only 15% of enterprises considering their current security measures effective.

At the same time, the results of the survey showed that current mitigation practices for third-party risks remain fragmented, with no way of protection getting more than 40% of current adopters. Even the most common protective measure, two-factor authentication, is used by only 38% of respondents.

In addition, only 35% of organisations conduct regular reviews of contractors’ cybersecurity postures. As a result, nearly two thirds of businesses lack ongoing visibility into the security of their partners, leaving them exposed to evolving vulnerabilities across their ecosystems.

It’s noteworthy that companies that have already experienced supply chain and trusted relationship attacks tend to adopt stronger security habits. Those hit by supply chain incidents are more likely to request penetration test results (56%), while victims of trusted relationship breaches prioritise checks on compliance with industry standards (56%) and their contractors’ own supply chain policies (53%).

“When security teams are overstretched, understaffed and have to prioritise urgent tasks over long term resilience priorities, organisations are left exposed to threats that can move silently through their provider ecosystem.

“To break this cycle, the industry needs to adopt more unified and consistent mitigation strategies, from standardised contractor assessments to stronger cross‑team awareness. Supply chain security should become a shared, enforceable responsibility across the entire business network,” comments Sergey Soldatov, Head of Security Operations Center at Kaspersky.

Only by implementing preventive measures across the organisation and approaching partnerships with suppliers and contractors strategically can companies reduce supply chain risks and ensure the resilience of their business.

 


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Study Reveals 83% of Employees Stay Connected to Work During Time Off, Fuelling Digital Anxiety

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A new Kaspersky survey undertaken in the Middle East, Turkiye and Africa (META) region reveals that digital anxiety is becoming a defining feature of modern work culture, as employees don’t disconnect even during their free time and vacations.

According to the findings, 83% of respondents keep an eye on work tasks outside working hours. An overwhelming 85% reply to all work-related messages in instant messaging apps, while the same share (85%) check work emails during their time off – and 81% admit they are responding to work emails while on vacation or in their personal time.

The pressure to remain constantly available is contributing to heightened stress levels in the workplace. Other sources of stress include work issues, for example, 43% experience anxiety after accidentally sending a random message to a work chat.

Interestingly, not all digital mishaps are perceived equally: 40% report that they take it calmly when they send an unfinished email, proving that some mistakes are considered less damaging than others.

Blurred boundaries between professional and personal life, combined with instant communication tools, are intensifying feelings of constant monitoring and fear of making digital errors.

More than a third (36%) of respondents say they feel extremely uncomfortable or even scared if their boss notices them scrolling through social media at work instead of working. The “always-on” culture may undermine employee well-being, increase burnout risks, and reduce overall productivity in the long term.

“Digital anxiety doesn’t just affect employee well-being – it can also increase cybersecurity risks for organisations. When people feel constant pressure to respond immediately to messages and emails, they are more likely to act impulsively, without carefully verifying links, attachments, or sender identities.

This urgency can make employees more vulnerable to phishing, and other scams using social engineering techniques,” comments Brandon Muller, Technical Expert at Kaspersky.

Kaspersky recommends employees to follow the below tips to avoid digital anxiety and associated cyber risks:

  • Slow down before clicking or replying. Digital anxiety can trigger automatic reactions. A short pause to check sender details, URLs, or attachments can prevent security breaches.
  • Treat urgency as a red flag. Cybercriminals often exploit pressure and fear. Always verify unexpected or urgent requests before responding.
  • Avoid handling sensitive information on unsecured networks. Public Wi-Fi, often used when working outside regular hours, increases exposure to cyber threats. Mobile network and VPN should be applied in such cases.
  • Use technologies that will help reduce risks. For example, Kaspersky Premium offers AI-powered anti-phishing features designed to help warn of potential threats.

Businesses can reduce cybersecurity risks related to employees’ digital anxiety by providing regular cybersecurity training that helps staff recognise threats and respond correctly even under stress.

At the same time, organisations should use robust cybersecurity solutions to minimise the impact of human error. Kaspersky Next’s adaptable and robust cloud-native protection, underpinned by an unequalled cybersecurity track record, is one of such products.

Protection solutions for mail servers, such as Kaspersky Security for Mail Server, with anti-phishing capabilities, help to additionally decrease the chance of infection through a phishing email.


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FG Approves Electric Buses for Civil Servants, Pushes Local Auto Growth

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Federal Government of Nigeria has approved the acquisition of electric buses for civil servants as part of efforts to promote cleaner transportation and boost local vehicle manufacturing.

FG Approves Electric Buses for Civil Servants, Pushes Local Auto Growth

The development was disclosed in Abuja by Joseph Osanipin, Director-General of the National Automotive Design and Development Council (NADDC). Osanipin said the buses would be sourced from local assemblers to strengthen domestic production and stimulate growth in Nigeria’s automotive sector.

He stated: “The initiative is aimed at encouraging the transition to cleaner mobility while creating opportunities for local manufacturers.” According to him, the government has also procured charging infrastructure that will be deployed across parts of the country to support the adoption of electric vehicles.

As part of broader efforts to develop the sector, the council is establishing the Nnewi Automotive Development Park in Anambra State. Osanipin explained: “We are developing the Nnewi Automotive Development Park where we will provide the necessary infrastructure so that users of the park can share facilities.”

He added that the shared infrastructure model would enable investors and manufacturers to operate without bearing the full cost of setting up independent facilities. The council is also seeking additional investment to accelerate the development of the park and attract more industry participants.

Osanipin urged Nigerians to support locally assembled vehicles, noting that increased patronage would help create jobs and drive economic growth. He said the council is providing training to manufacturers and stakeholders to enhance local production of vehicle components such as batteries and tyres.

“The move will reduce import dependence, create employment opportunities, and contribute to the country’s Gross Domestic Product,” he said. The NADDC is also working with the Bank of Industry Nigeria to facilitate the disbursement of the National Automotive Development Fund to qualified stakeholders.


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