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Global Digital Spending Touched $575 Bn in 2018 and is Expected to Grow to a Whopping $1.2 Tn by 2022: Says Zinnov

(Eds: Disclaimer: The following press release comes to you under an arrangement with PR Newswire. PTI takes no editorial responsibility for the same.) BENGALURU, March 22, 2019/PRNewswire/ --40% of the Large Enterprises have set up one or more digital CoEs focused on Internet of Things (IoT), Robotic Process Automation (RPA), and Artificial Intelligence (AI) Over 85% of the top 100 global enterprises are investing in building intelligent platforms to drive digital outcomes Digital revenue for outsourcing Service Providers is set to grow at a 29% CAGR to reach $110 Bn, by 2022 Zinnov, a leading global management and strategy consulting firm, released its global rankings of Digital Service Providers for 2019, titled, 'Zinnov Zones for Digital Services - 2019' today. Zinnov defines digital spend as investments on modern data-driven digital technologies that help companies improve customer experience, drive higher operational efficiencies, and build new digital products and services. The study analyzed the Global Digital Spending across enterprise segments and evaluated outsourcing Service Providers on the breadth and depth of their capabilities. (Logo: https://mma.prnewswire.com/media/694742/Zinnov_Logo.jpg )The study estimated that the global enterprise digital spend was $575 Bn in 2018 and is expected to grow at a CAGR of ~20%, to touch $1.2 Tn by 2022. Spend on building intelligent and connected products (i.e., digital engineering) increased to $293 Bn, while IoT spend alone, reached a staggering $201 Bn in 2018. The study further revealed that 85% of the top global enterprises are creating intelligent platform-centric business models to compete against successful start-ups, unicorns, and tech giants in the quest to stave off competition and stay relevant. Today, over 40% of large global enterprises have already set up one or more digital CoEs focused on IoT, AI, and RPA.The Zinnov study also detailed that outsourcing Service Providers generated $40 Bn in digital services revenue in 2018 and estimated that this number is likely to cross $110 Bn by 2022. Interestingly, a significant proportion of the digital and platform engineering opportunities happened in industries beyond software & HiTech. Customer experience management, intelligent operations, insights-as-a-service, security, and legacy modernization emerged as the other top digital services opportunities for Service Providers. As enterprises increasingly shift their focus towards creating new digital products and services, a significant share of services projects are expected to be driven by the convergence of disruptive technologies such as AI/ML, IoT, AR/ VR, and RPA. To capitalize on this growing opportunity, Service Providers are adopting a multi-pronged approach of talent upskilling, ecosystem and start-up partnerships, setting up digital CoEs, and mergers & acquisitions, to expand their digital capabilities. Leading Service Providers are elevating their positioning by demonstrating deep focus on industry-aligned digital solutions and are starting to bet on outcome-driven engagement models. Incumbent Service Providers, however, continue to struggle with relatively smaller digital deals, intense competition from niche providers in the industry, and geographical and use case limitations.'Zinnov Zones for Digital Services' ranking analyzed 23 Global Service Providers on their 'Digital Prowess' and 'Scalability' to position them in 4 Zinnov Zones ('Nurture Zone', 'Breakout Zone', 'Execution Zone', and 'Leadership Zone'). Apart from the overall ratings on Digital Services, the analysis also provides a relative positioning of Service Providers across 8 key segments - Digital Strategy & Consulting, Application & Platform Development, UI/UX & Customer Experience Management, Legacy Modernization, Deployment & Integration, Data Analytics & AI, Infra & Managed Services, and Security Services. HCL, Wipro, Altran, EPAM, HARMAN, Mindtree, L&T Infotech, and Persistent Systems have been identified as leaders for overall Digital Services.Speaking at the launch of the report, Praveen Bhadada, Partner & Practice Head, Digital Transformation, Zinnov, said, "We congratulate all the companies in the leadership zone of the Zinnov Zones for Digital Services rating for 2019. The $110 Bn addressable opportunity in digital services is forcing a reset in positioning, partnerships, and GTM strategies of Service Providers. Building expertise at the convergence of disruptive technologies and creating deep know-how of customer programs should be an integral part of the GTM to create new opportunities. As digital buy centers get decentralized across functions and geographies, Service Providers will have a steep task of managing relationships to be able to participate in large opportunities in the future."About Zinnov Zones Zinnov Zones is an annual rating published by Zinnov which rates Service Providers and Technology Companies based on their competencies and capabilities. Since 2009, Zinnov Zones (previously known as GSPR - Global Service Provider Ratings) has become one of the most trusted reports globally, for enterprises, technology vendors, and service providers to better understand the vendor ecosystem in multiple domains such as Digital Transformation, Engineering R&D, IoT, Media & Entertainment, Retail, Travel & Hospitality, and Robotic Automation. The detailed ratings and contact information of Service Providers are available at https://zinnovzones.com/ratingsAbout Zinnov Founded in 2002, Zinnov is a global management and strategy consulting firm, with presence in Silicon Valley, Houston, Bangalore, and Gurgaon. Over the past 16 years, Zinnov has successfully consulted with over 250+ Fortune 500 customers to develop actionable insights that help them in their transformation journeys. With core expertise in Product Engineering and Digital Transformation, Zinnov assists clients by: With their team of experienced professionals and research teams, Zinnov serves clients from across software, semiconductor, consumer electronics, travel and hospitality, automotive, storage, telecom & networking, healthcare, banking, financial services, and retail verticals in US, Europe, Japan, and India.For more information, visit https://zinnov.com/Source: Zinnov Management Consulting PWRPWR