70 Percent of Businesses Increase or Maintain Digital Transformation Spend Amid Pandemic, IFS Study Says
Decision-makers concerned with economic disruption 20 percent more likely to plan increased spending
Macro-economic disruption has failed to dampen digital transformation plans, with 52 percent* of companies stating they will increase their spending on digital transformation, according to a global research study from IFS.
While many people might assume that respondents concerned with the economy would pull back on technology spending, the reality is that investment is increasing. The survey data indicates that, during these dynamic times, plans to increase spending on digital transformation tracks closely with concerns about economic conditions disrupting the business. In fact, the survey indicates that people concerned with economic disruption were 20 percent more likely to plan increased spending on digital transformation.
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Appetite for digital transformation initiatives is, however, not consistent across all geographies or industry verticals. Looking closer at the latter, the survey places construction in the lead, with 75 percent of respondents in this sector saying they have plans to invest this year. Runners up in this regard are information technology (58 percent) and manufacturing (55 percent) companies. On the other end of the spectrum, the study finds more cautious in industries in energy and utilities at 37 percent, trailed by retail at 35 percent.
“Examining the specific industries, it is clear that the construction industry, which has historically been a laggard when it comes to enabling technology, is investing heavily to catch up with more digitally mature sectors such as manufacturing,” IFS Industries Senior Vice President, Antony Bourne, said. “This disparity in investment levels aligns very well with what we see across our own customer base.”
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