The International Data Corporation’s new Worldwide Future of Work Spending Guide anticipates that spending in the Future of Work will amount to around $656 billion this year, which is a 17.4% increase from 2020.
The Future of Work refers to the advances and alterations that the workplace is undergoing in terms of technology, operations, skill sets, worker experience and more.
“Traditional work models do not provide the agility, scalability, and resilience required by the future enterprise,” said Holly Muscolino, research vice president, Content Strategies and the Future of Work. “To drive growth and competitive differentiation, organizations will invest in technologies and services that power automation, human-machine collaboration, new organizational structures and leadership styles, dynamic learning opportunities, a reimagined workplace, and a digital work environment that is not bounded by time or physical place.”
That’s why companies have started investing heavily into new technologies, platforms and services. Among these investments, the largest will be in hardware at around $228 billion, with IT and connectivity coming in second at $123 billion.
The report also expects that software, which includes analysis and artificial intelligence, to see the fastest spending growth of 21.3% from 2020 to 2024.
The discrete and process manufacturing industries will account for over one-third of all Future of Work spending, with professional services, retail and banking following behind. Additionally, the construction industry is expected to see the fastest Future of Work spending during the forecast period.