Macroeconomic Centre of Excellence

IDC’s European Macroeconomic Centre of Excellence

Winds of change can be defined as external forces shaping the market, either we are considering the whole market or the IT market. These forces have been in place for several months and years: at the beginning they were thought to be transient and not connected, but the current scenario proves it wrong.

As time pass, winds of change are becoming storms of disruption. Storms of disruption have four main features

They are company-specific, i.e., they affect companies differently, even if in the same industry

They are not temporary, i.e., they are here to stay, although they might change form

They are not standalone, i.e., they do not come alone

They are all interconnected, i.e., they influence and exacerbated each other

The Digital Resiliency Framework

Digital Resiliency is the ability for an organization to rapidly adapt to business disruptions by leveraging digital capabilities to not only restore business operations, but also capitalize on the changed conditions. Within this context, the IDC Digital Resiliency Framework includes 3 phases of response to a crisis, six organizational dimensions that are all enabled with a shared technology / digital architecture for each dimension we outline critical business outcomes and link these to specific digital resiliency use cases relevant for each phase, enabled by specific technology investments.

Source: IDC Research, 2021

EMEA IT Spending Update (Y-o-Y Growth Rates)

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The devices sector is one of the most exposed to latest turmoil, from the war to rising inflation to supply chain disruption, thus resulting in a slowdown of spending on this category. Moreover, devices had exceptional replacement cycles during the pandemic (e.g., to satisfy remote everywhere scenario), therefore the slower growth rate is also the downside effect of those exceptional cycles.

Source: IDC Worldwide Black Book (May 31, 2022); growth in constant currency; IT Spending excludes telecom spending, business services and some emerging technologies which are included in ICT Spending taxonomy

EMEA organizations concerned about the current situation

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According to most of the organizations, concerns about supply chain, inflation, labor shortages, geopolitical tensions and COVID variants will continue through much of 2022, restraining the pace of economic recovery in global economic activity until very late in 2022, early 2023.

Q: Which of the following best describes your current thinking while setting technology priorities for your organization in 2022?

Source: IDC EMEA, FERS Survey Europe, Wave 4: May 10 - May 25, 2022

Impact of inflation on costs and plans for selected technology categories

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Inflation is expected to impact all technology category, from hardware to software and services costs, also considering infrastructure related costs.

Q: Considering the impact of general inflation on the technology vendors your organization does business with, please indicate in which of the following technology categories you expect inflation to have the greatest impact on costs?

Source: IDC EMEA, FERS Survey Europe, Wave 4: May 10 - May 25, 2022

The Technomics Tangle: How Macroeconomic Forces Are Affecting the European Digital Market (and Vice Versa)

This IDC Web Conference analyzes the latest insights on what we should expect from a digital market standpoint over the next years, how industries will be affected by incoming investments, and how tech providers can seize this next big opportunity ahead.

European Chips Act Aims to Tackle Semiconductor Crisis in Europe, Says IDC

Since the widespread shortage of semiconductors started, several European industries have been hit, none more so than the automotive sector. The recent European Chips Act aims to invest €42 billion of public and private funds by 2030 to radically raise Europe's game in the digital economy by bolstering semiconductor production on the Continent.

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