Digital workplace investment due to increase by 5% in Australia

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Organisations in Australia are turning their attention to business transformation to improve employee systems as the post-pandemic world increases the reliance on technology, according to a new study from emerging technology analyst firm Telsyte.

The Telsyte Australian Digital Workplace Study 2020, an online survey of 439 IT decision-makers across Australian organisations with 20 or more employees, ound Australian IT  investment is expected to be spared from the impact of the recent pandemic disruptions.

Overall, businesses plan to increase spending by 5 percent in 2020 showing that despite the economic headwinds, intranets seems to be spared when organisations are looking at investing in technology.

Most transformation efforts have swung the focus from customers back to employees – a big shift from 2019. To this end, investment over the next 12 months is shifting to workplace modernisation (75%), data analytics (72%) cloud (68%), modernising business applications (66%), and cybersecurity (66%), including better security for remote workers.

Another big mover is improving employee productivity and engagement, which is increasingly driven by technology as more people work from home.

Rising transformation spend to combat “uberisation”

Despite the challenges, Telsyte found more than a quarter of IT budgets are now spent on business transformation; rising to almost one third in larger corporates.

The desire to transform is also being driven by non-IT business units, with more than half of all organisations also spending non-IT budgets on technology

Telsyte Managing Director, Foad Fadaghi, says spending on digital transformation was already set to increase in 2020 for a range of IT services, even before COVID-19 struck.

“Over 80 per cent of organisations indicate they have fast tracked their transformation initiatives.” Fadaghi says.

This “uberisation” of industries is the utilisation of computing platforms, such as mobile applications, to facilitate transactions between clients and providers (sometimes peer to peer), often bypassing the role of centrally planned corporations.

Furthermore, Telsyte’s research found more than 1 in 3 Australian organisations are afraid their industry will be “uberised” and there are growing uberisation fears among financial and insurance services, manufacturing and education industries.

As a result, more than half of Australian organisations have launched transformation initiatives to better prepare for future disruption both from new competitors but also market disruptions such as the global pandemic.


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