Global digital transformation spending set to reach €2.6 trillion by 2025

Global digital transformation spending set to reach €2.6 trillion by 2025

Digital technology is taking on an increasingly prominent role in the workplace, forever changing the way we think of the work environment.
  • Digital technology in the workplace
  • Will technology take over your jobs?
  • Remote work is here to stay

The way we work has changed dramatically over the years, in large part due to a growing adoption of digital technology within the workplace. According to some estimates, as many as 50 per cent of jobs today require technology skills. By 2030, this figure could reach 75 per cent. As more and more companies embrace digitalisation, it’s predicted that global digital transformation spending will reach €2.6 trillion by 2025. So, what exactly are the main factors driving this trend?

Digital technology in the workplace

There are numerous reasons why companies are choosing to invest in digital technology. According to the 2023 Gartner CIO and Technology Executive Survey, which included more than 2,200 CIOs from 81 countries and all major industries, 53 per cent of respondents said they do so to improve operational excellence, while 45 per cent do it to improve customer or citizen experience. Other notable reasons include growing revenue, as cited by 27 per cent of respondents, and improving cost efficiency, which was highlighted by 22 per cent. However, 95 per cent of organisations still struggle with developing a vision for digital change, whether due to competing expectations from different stakeholders or the growing talent shortages. Despite difficulties in attracting and retaining talent equipped with relevant digital skills, only 23 per cent of companies use gig workers, while just 12 per cent use students to close the skills gap.

Will technology take over your job?

Many people are worried that technology will take over their jobs and it appears that these fears are not unfounded. The World Economic Forum estimates that technology will displace 85 million jobs globally by 2025. However, it’s not all bad news for human workers, with 97 million new jobs expected to emerge over the same period. 5G technology in particular is expected to have a profound impact on tomorrow’s workplace. IHS Markit predicts that the deployment of 5G technology will create 22 million jobs worldwide by 2035. What’s more, it could potentially increase the productivity of the UK workforce by 2 per cent. In monetary terms, these productivity gains would equate to €4.2 billion. Wearables are yet another technology that could have a positive effect on the workplace. In addition to increasing productivity by 8.5 per cent, wearable tech has also been shown to increase job satisfaction by 3.5 per cent.

Remote work is here to stay

Of all the trends to emerge in the world of work in recent years, the switch to remote work has undoubtedly been the one with the most significant impact. One recent survey reveals that 10 per cent of companies plan to switch to a fully remote working model in the near future, while 60 per cent will embrace a hybrid model that combines in-person and remote work. When asked to share their own opinions on the matter, about 30 per cent of workers who recently switched to remote work said they would like to continue to do so permanently, while around 70 per cent would prefer a hybrid model. 

This trend is particularly evident in the United States, where the number of remote workers is expected to reach 36.2 million by 2025, or nearly a quarter of the entire workforce. Of course, effective collaboration will still be important in remote as well as hybrid models. Most meetings will, however, take place in a virtual environment from now on. While in-person meetings accounted for 63 per cent of all team conversations in 2019, according to Gartner, that figure will drop to just 24 per cent by 2024. What’s particularly important for companies is that working from home doesn’t appear to have a negative impact on worker productivity. In fact, as many as 35 per cent of hiring managers say that productivity has increased following the switch to a remote model.

Closing thoughts

Technology is taking on an increasingly prominent role in every aspect of our lives, and the workplace is no exception. Although some jobs will inevitably be lost as a result of this ongoing digital transformation, many new ones will emerge as well. What’s more, technology has been shown to increase employee productivity and job satisfaction, which will only serve to accelerate its adoption further in the upcoming period.

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