Market Research Logo

Information Technology Industry Business Outlook and Procurement Survey June 2018 - November 2018

Information Technology Industry Business Outlook and Procurement Survey June 2018 - November 2018

Summary

GlobalData’s Information Technology Industry Business Outlook and Procurement Survey June 2018 - November 2018, examine executives’ opinion on the business outlook and procurement activities over June 2018-November 2018. Organizations can know about key business priorities, supplier price variations, changes in capital expenditure, and organizations’ digital transformation strategies. Additionally, it provides information categorized by region and company type.

Amid the several challenges, such as rising competition, market uncertainty, and responding to pricing pressure, IT companies are looking forward to expanding in the current market, developing new products, and improving operational efficiency over the next six months. Moreover, companies are expected to gain significant growth opportunities from emerging markets (such as India, China, and Brazil) and developed markets (such as the US, Germany, and the UK) during June-November 2018. Mergers and acquisitions are expected to increase within the IT industry over the next six months.

The majority of the IT industry executives surveyed expect that their companies are most likely to invest in emerging technology such as internet of things (IoT) and artificial intelligence (AI) over the next two years.

What else does this report offer?

  • Key business priorities: examines the IT companies’ important priorities for June 2018-November 2018
  • Emerging and developed markets: provides information about key emerging and developed markets which will offer the most growth over the next six months
  • Change in M&A activity: analyzes IT industry executives’ opinions on changes in merger and acquisition activity globally
  • Business concerns: identifies major business concerns that are likely to impact manufacturers and suppliers
  • Change in capital expenditure: tracks the expected change in capital expenditure both globally and regionally
  • Change in procurement activities: evaluates how procurement activities will change in the IT industry over the next six months
  • Procurement budget outlook: projects procurement budget allocation along with changes in procurement expenditure over June 2018-November 2018
  • Supplier prices outlook: determines the expected change in supplier prices over June 2018-November 2018
  • Organizations’ digital transformation strategies: identifies executives’ perspectives towards the scope, barriers, and essentials of the digital transformation within the IT industry
  • Prevalence of emerging technology: determines the expected technology to gain investment among IT companies over the next two years.
Scope
  • Expansion in the current market, new product development, and improving operational efficiency are the top three priorities for the IT companies over the next six months
  • Globally, China and India are the emerging markets that have the most potential for significant growth opportunities for the IT industry, while, the US is highest growth-offering developed market during June-November 2018
  • IT companies are expected to increase their capital expenditure towards the new product development, and research & development over the next six months
  • Executives expect an increment in the procurement activities for the IT services and technology/license purchases during June-November 2018
  • Overall, 68% of executives indicate that customer engagement has the highest scope for digital transformation within the IT industry.
Reasons to buy
  • Highlights key business priorities thus helping IT companies to realign business strategy
  • Develop or adjust business expansion plans by using significant growth-offering emerging and developed markets
  • Helps enterprises by providing the insights into the changes in procurement budget allocations through procurement budget projections anticipated by executives for June 2018-November 2018
  • Implement effective price management by viewing supplier price variations highlighted for the next six months
  • Identify the scope, challenges, and essentials for the digital transformation within the IT industry.


  • Introduction
    • Definitions
    • Methodology and Sample Size
    • Respondent Profile
  • Global Business Outlook in June 2018-November 2018
    • Global Business Outlook: Key Takeouts
    • The highest percentage of respondents expect `expand in current market' as their organization's foremost priority for over the next six months
    • The majority of respondents who operate in North America and Europe highlighted new product development as the key priority for their company for the next six months
    • In total, 58% of the IT industry executives who operate in large companies identify improving operational efficiency as one of their key priorities during the next six months
    • Overall, 45% of executives consider India as the most prominent emerging market that is expected to offer several growth prospects to the IT companies over the next six months
      • Table Which emerging markets do you expect to offer your industry the most growth over the next six months? (Overall)
    • The majority of respondents with business operations in North America anticipate Brazil as being the emerging market expected to offer significant growth during the next six months
    • Over the next six months, respondents from large and small companies are optimistic about growth prospects offered by China and India
    • According to the survey, the US and Germany are the developed markets that are expected to offer significant growth opportunities to the IT industry over the next six months
      • Table Which developed markets are expected to offer significant growth opportunities for your industry over the next six months? (Overall)
    • In total, 52% of IT industry executives operating in Europe see the UK and Germany as the developed markets with significant growth prospects during Jun 2018-Nov 2018
    • The highest percentage of respondents operating in large and small companies indicate the US to offer significant growth opportunities over the next six months
    • Overall, 59% of survey respondents foresee an increase in the number of mergers and acquisitions within the IT industry over the next six months
    • About one-third of respondents who operate in Asia-Pacific region foresee a significant increase in the number of mergers and acquisitions activity during the next six months
    • In total, 72% of IT industry executive operating in medium-sized companies anticipate an increase in mergers and acquisitions activities during the next six months
    • Views and opinions on the mergers and acquisitions activities: In their own words
    • Rising competition among the technology companies and market uncertainty is projected to be the major concern within the IT industry over next six months
    • Rising competition and market uncertainty are the greatest concerns for respondents from North America and Asia-Pacific for Jun 2018-Nov 2018
    • According to the survey, 86% of respondents who operate in medium-sized companies are highly concerned about retention or recruitment of skilled staff for the next six months
    • More than two-thirds of the respondents indicate an increase in the capital expenditure on new product development within the IT industry over the next six months
  • Procurement Behaviors and Strategies
    • PROCUREMENT ACTIVITIES OUTLOOK: KEY TAKEOUTS
    • The majority of the global IT industry executives identify an increased use of technology as the prominent objectives of the technology companies over the next six months
      • Table In what ways do you expect your procurement resources and objectives to change over the next six months? (Overall)
    • Regardless of the region of operation, the greatest number of executives anticipate their organization to focus on increased use of technology over the next six months
    • Overall, 65% of executives indicate that MRO activities will experience no change in terms of procurement expenditure across the IT industry over the next six months
    • Respondents operating in large companies and North America anticipate a significant or somewhat increase in technology/ license purchases during Jun 2018-Nov 2018
    • Globally, 15% of respondents anticipate their companies' global procurement budget to range from US$500,000 to US$5 million over the next six months
      • Table Over the next six months, what is your company's global procurement budget in US dollars? (Analysis of overall and regional responses) Jun-Nov 2018
    • The largest percentage of executives operating in small companies expect not to spend more than US$100,000 on procurement activities over the next six months
      • Table Over the next six months, what is your company's global procurement budget in US dollars? (Analysis of responses by company types)
    • In total, global IT organizations' procurement expenditure is expected to increase by an average of 4.6% over the next six months
      • Table How do you expect your organization's procurement expenditure to change over the next six months and why? (Analysis of overall and regional responses) Jun 2018-Nov 2018
    • Overall, 27% respondents operating in large companies foresee their organization's procurement expenditure increasing between 1% to 4.99% during the next six months
      • Table How do you expect your organization's procurement expenditure to change over the next six months and why? (Analysis of responses by company types)
    • Views on changes in organizations' procurement expenditure: In their own words
    • About one-third of the surveyed global IT industry executives project a significant increase in the supplier prices over the next six months
    • The highest percentage of respondent operating in large and small companies expect an increase in the supplier prices over the next six months
  • Digital Transformation and Emerging Technology
    • PROCUREMENT ACTIVITIES OUTLOOK: KEY TAKEOUTS
    • Overall, 43% of IT industry executives state that their organization has an enterprise-wide digital transformation strategy that is being actively pursued
    • The survey found that 69% of executives who operate in North America and 42% in Europe state that their organization does have an enterprise-wide digital strategy
    • The largest percentage of respondents operating in large and medium-sized companies agree that their organization has an enterprise-wide digital transformation strategy
    • Globally, 68% of respondents identify that customer engagement has the highest scope for digital transformation within the IT industry
    • In total, 79% of executives who operate in large companies state that the customer engagement and business innovation have the highest scope for digital transformation
    • More than one-third of respondents identify organization silos as the most critical barrier that hinders the digital transformation within their organization
      • Table Which of the following factors hinder digital transformation at your organization? (Overall) Jun 2018-Nov 2018
    • The highest percentage of the global IT industry executives indicate strong leadership as the most influential factor for the successful digital transformation
    • The majority of respondents who operate in Asia-Pacific indicate strong leadership and sufficient funding as the most important factors for completion of the digital transformation
      • Table What do you think is the most important factor for successful digital transformation? (Analysis of responses by region)
    • Regardless of the company type, respondents identify the partnership with start-ups and disruptors as the least prominent factor for the success of digital transformation
      • Table What do you think is the most important factor for successful digital transformation? (Analysis of responses by company types)
    • Overall, Internet of Things(IoT) is identified as the most popular emerging technology that is expected to gain investment in the IT industry over the next two years
    • Considering the next two years, 80% of respondents operating in Asia-Pacific identify artificial intelligence as the key emerging technology to drive investment in IT industry
    • Regardless of company type, respondents expect internet of things (IoT) and artificial intelligence as the emerging technologies that will attract investment over the next two years

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook

Share this report