According to Gartner, global IT spending is projected to reach $5.1 trillion in 2024, an 8% increase from 2023. This investment underscores technology’s crucial role in driving business innovation and growth.
Understanding what technologies will drive the most disruption and how to maintain a constant state of adaptation and innovation, while leveraging technological developments to redefine business models represents a significant challenge. This report from HCLTech’s Hi-Tech group highlights six megatrends that are shaping the future of technology companies, revealing how they will meet the challenge of maintaining a constant state of innovation.
1. SaaSification
SaaSification is turning traditional software into digitally accessible, cloud-based applications. The asset-light nature of SaaS incurs lower overhead and logistical costs compared to physical products, and as a result SaaS is rapidly growing within the cloud computing industry. As more and more businesses modernize their offerings by outsourcing cloud operations, predictions suggest that the SaaS market will reach $908.2 billion by 2030. Businesses are integrating PSaaS and strategically self-funding SaaSification through flexible payment models that reduce expenditure on software ownership, security, updates and maintenance.
SaaSification supports new billing and customer success models. Many SaaSification initiatives are initially self-funded, leading to challenges due to limited financial resources and investor confidence issues. However, it’s also important to note that cloud computing has drastically reduced infrastructure costs and allows companies to channel their limited funds into product development.
The benefits of embracing SaaSification include greater control and autonomy, higher flexibility and agility and lower cost and risk.
To find out more about the importance of SaaSification and outsourcing cloud operations in 2024, read the HCLTech report, Hi-Tech: Venturing into the impossible.
2. Artificial intelligence
AI and more recently, GenAI, are reshaping the way industries conceive, develop and implement groundbreaking ideas. Through advanced algorithms, machine learning (ML) and cognitive computing, AI expedites problem-solving and generates novel insights and solutions that may elude human intuition.
In a McKinsey survey, 55% of respondents confirm that their organizations have embraced AI. This paradigm shift is fundamentally altering the trajectory of innovation, ushering in an era where the returns on inventive endeavors are amplified at an exponential pace.
Organizations leveraging AI are witnessing a faster and more efficient conversion of ideas into tangible outcomes, fostering an environment of continuous evolution. The synergy between AI and innovation promises to redefine industries, revolutionize business models and propel humanity into a future of unparalleled progress.
The benefits of embracing AI at scale include improved speed and efficiency, faster, better and more intelligent decision-making, enhanced product development, reduced costs and elevated and more personalized customer service.
To find out more about how to unlock productivity with AI and embrace ethical practices, read the HCLTech report, Hi-Tech: Venturing into the impossible.
3. Semiconductor supply chain
AI-enabled chips form the core of semiconductors. They are the complex nucleus of intelligence embedded in digital infrastructures.
Semiconductor companies provide chips and pioneer new technologies in computing, memory, storage and networking. This toolkit can also encompass semiconductor logistics. They are the building blocks of other intelligent systems and electronic environments, addressing the needs of datacenters, medical devices, computer hardware, smartphones and much more.
With AI poised to revolutionize the semiconductor industry by capturing 40 to 50% of the total technology value stack, semiconductor supply chains carry significant implications for original equipment manufacturers (OEMs) and hyperscalers. They offer an opportunity to transform demand signaling within chip supply chains. Think of semiconductor supply chains as silent orchestrators, weaving connections, propelling innovation and delivering productivity, performance and scalability for businesses.
The importance of robotics and automation (R&A) in the semiconductor industry can’t be overestimated. As the semiconductor landscape evolves, the integration of R&A becomes a strategic necessity. These technologies enhance manufacturing efficiency by minimizing human error, optimizing production workflows and enhancing product quality. Accelerated production cycles translate to quicker turnaround times, allowing companies to swiftly adapt to market demand, increase profits and stay competitive. If robotic installations rise to 30% above the baseline forecast, it could add an extra $4.9 trillion to the global economy annually by 2030.
The benefits of adopting AI and R&A into the semiconductor supply chain include enhanced product efficiency, heightened quality control and improved scalability.
To find out more about how to secure the semiconductor future, read the HCLTech report, Hi-Tech: Venturing into the impossible.
4. Scaling hyperscalers sustainably
Hyperscale datacenters drive modern conveniences. From powering smartphones and facilitating parking sensors to streaming media, they’re the central hub for digital operations. Led by cloud computing, hyperscale datacenters represent a comprehensive network of intelligent facilities expected to account for 62% of the global datacenter market by 2032.
As hyperscalers expand to build and operate datacenters, it has become imperative for businesses to prioritize resource conservation and energy efficiency in their operations.
Close to half of Fortune 500 companies have pledged to decrease their carbon emissions by 2030. As commitment to environment, social and governance (ESG) issues continues to gain momentum, hyperscalers are required to integrate green initiatives into their scaling strategies: energy efficient technologies, renewable energy sources and eco-friendly infrastructures.
Optimizing hyperscalers sustainability requires a well thought out cloud strategy, which will enable benefits, such as enhanced reliability, improved scalability and streamlined operational processes and cost optimization.
To find out more about how to embrace sustainability through technology investments and partnerships, read the HCLTech report, Hi-Tech: Venturing into the impossible.
5. Customer success
Predictions suggest that the Experience-as-a-Service (XaaS) market will expand to $3.2 trillion by 2030. Recognizing that differentiation solely through superior features and competitive pricing no longer suffices in an oversaturated market, companies are reorienting their strategies to emulate companies like Amazon’s approach by prioritizing customers.
Since subpar service is one of the main reasons customers will change providers, businesses must offer exceptional value and satisfaction throughout the customer journey to retain clients and foster brand loyalty. To achieve this, tech companies are turning to cloud-based delivery models to cultivate day 0/day 1 readiness. They’re implementing configure, price, quote (CPQ) processes and partner relationship management (PRM) software to nurture customers and build partner ecosystems. They’re also dedicating resources to AI tools and automation frameworks to transform customer support operations and ensure personalized experience for subscribers, both pre- and post-sale.
Blending human insight with technology capabilities is vital in improving customer service. Notably, 78% of customer service professionals report that AI and automation enable them to concentrate on more crucial activities, such as deepening customer relationships and addressing complex issues that require a human touch.
The benefits of aligning technology to customer service operations include continuous and consistent customer support, improved time savings and increased personalization and revenue.
To find out more about delivering exceptional customer loyalty, read the HCLTech report, Hi-Tech: Venturing into the impossible.
6. Data-driven secure enterprises
By 2025, the world is expected to generate more than 180 zettabytes of data.
This explosive data growth poses significant challenges: an insatiable demand for data storage, processing, analysis and security. The surge in remote/hybrid workforces and multi-cloud environments has also resulted in data silos, increased technological complexities within organizations and elevated data breach risks.
With approximately 2,200 cyberattacks occurring daily, the potential impact could exceed 800,000 individuals being hacked each year.
Cyber adversaries show no bias in terms of size or industry when targeting subjects. Digital-native enterprises need to incorporate internal data platforms and predictive analytics to proactively identify vulnerabilities and risks. They must also leverage AI and ML automation and robust cloud security measures to consistently safeguard their customer data and information assets.
On the move data protection in the form of cloud security and intelligent security operations are crucial in defending the modern enterprise. The benefits of embracing these security practices include scalable protection, better compliance adherence and enhanced data privacy and protection.
To find out more about how to secure the modern enterprise, read the HCLTech report, Hi-Tech: Venturing into the impossible.
Unleash technology magic in 2024 and beyond
We are in an era where technology is delivering what past generations would refer to as magic. This transformative innovation is set to grow at an exponential rate with new and yet unconceived ideas on the horizon.
The six technology megatrends highlighted in the latest report from HCLTech reveal that 2024 is setting the stage for a future shaped by technological marvels that will continue to propel industries into a new era of growth and possibilities.
