Gartner's top predictions for IT cos, users for 2013 & beyond

by CXOtoday News Desk    Oct 26, 2012

Gartner PredictionsGartner has revealed its top predictions for IT organizations and IT users for 2013 and beyond. These predictions focus on economic risks, opportunities and innovations that will impel CIOs to move to the next generation of business-driven solutions. Selected from across Gartner’s research areas as the most compelling and critical predictions, they address the trends and topics that underline the reduction of control that IT has over the forces that affect it.

The top predictions for IT organizations include the following:

By Year-End 2014, three of the top five mobile handset vendors will be Chinese.
As the market continues to consolidate around Android and iOS, with most vendors committed to Android. Thereby, the traditional mobile phone players are getting squeezed, being unable to compete with Apple and Samsung at the high end and struggling to differentiate from aggressive new vendors, most notably Huawei and ZTE, which are using the same Android platform for their models. Chinese vendors have the opportunity to leverage their strong position in the domestic Chinese market for entry-level smartphones and expand to other regions.

Through 2015, 90% of enterprises will bypass broad-scale deployment of Windows 8.
Windows 8 is Microsoft’s attempt to bring the touch interface to its flagship product to counter gains by Apple in rapid-growth markets. However, most enterprises and their trusted management vendors are not yet prepared for this change, and will want to wait for more stability before proceeding.

By 2015, big data demand will reach 4.4 million jobs globally, but only one-third of those jobs will be filled.
The demand for big data is growing, and enterprises will need to reassess their competencies and skills to respond to this opportunity. Jobs that are filled will result in real financial and competitive benefits for organizations. An important aspect of the challenge in filling these jobs lies in the fact that enterprises need people with new skills — data management, analytics and business expertise and nontraditional skills necessary for extracting the value of big data, as well as artists and designers for data visualization.

By 2014, European Union directives will drive legislation to protect jobs, reducing offshoring by 20 percent through 2016.
An upward trend in unemployment has continued in the European Union during the ongoing financial crisis. With little expectation of a short-term recovery, Gartner expects to see the European Union introducing directives before the end of 2014 to protect local jobs. The impact of this protectionist legislation would be a net reduction of offshoring by 20 percent through 2016.

By 2014, IT hiring in major Western markets will come predominantly from Asian-headquartered companies enjoying double-digit growth.
An increasing number of successful Asian companies — particularly from China and India — are enjoying double-digit growth rates and will substantially grow their geographic footprints, making significant investments in major Western markets through 2015. Consequently, these organizations will be responsible for major hiring of IT professionals to support their growth at a time when Western companies will still be coping with the impact of the economic crisis.

By 2017, 40 percent of enterprise contact information will have leaked into Facebook via employees’ increased use of mobile device collaboration applications.
While many organizations have been legitimately concerned about the physical coexistence of consumer and enterprise applications on devices that interact with IT infrastructure, there has been little discussion about the underlying technologies that permit transfer of information between legitimate enterprise-controlled applications and consumer applications. These interactions are difficult to track, and the technologies to control the transfer are more difficult to build, deploy and manage.

Through 2014, employee-owned devices will be compromised by malware at more than double the rate of corporate-owned devices.
Corporate networks will become more like college and university networks, which were the original “bring your own device” (BYOD) environments. Because colleges and universities lack control over students’ devices, they focus on protecting their networks by enforcing policies that govern network access. Enterprises will adopt a similar approach and will block or restrict access for those devices that are not compliant with corporate policies.

Through 2014, software spending resulting from the proliferation of smart operational technology will increase by 25 percent.
Previously “dumb” operational devices or objects, like a vending machine, medical device, marine engine or parking meter, are now having software embedded in them, and sensors are being linked to the Internet to create and receive data streams. This machine-to-machine communication has the potential to trigger significant new software costs for four reasons: (1) because of the amount of software like light databases or operating systems embedded within large numbers of operational devices; (2) because of the traditional software vendors starting to charge license fees, in certain circumstances, if the devices even indirectly hit their applications; (3) because operational technology vendors are developing IT-like platforms and getting away from hardware sales and into annuity software sales; (4) because the people buying and paying for this may not even be in IT, are not experts in software procurement, and may make expensive mistakes signing license agreements with hidden, or not so hidden, costs and risks.

By 2015, 40 percent of Global 1000 organizations will use gamification as the primary mechanism to transform business operations.
Seventy percent of business transformation efforts fail due to lack of engagement. Gamification addresses engagement, transparency of work, and connecting employees’ actions to business outcomes. Companies apply feedback, measurement and incentives — the same techniques that game designers use, to keep players interested — to achieve the needed engagement for the transformation of business operations.

By 2016, wearable smart electronics in shoes, tattoos and accessories will emerge as a $10 billion industry.
The majority of revenue from wearable smart electronics over the next four years will come from athletic shoes and fitness tracking, communications devices for the ear, and automatic insulin delivery for diabetics. Wearable smart electronics, such as fitness trackers, often come with data analysis applications or services that create useful insights for the wearer. Applications and services will create new value for consumers, especially when combined with personal preferences, location, biosensing and social information. CIOs must evaluate how the data from wearable electronics can be used to improve worker productivity, asset tracking and workflow. Wearable electronics will also provide more-detailed information to retailers for targeting advertisements and promotions.

By 2014, market consolidation will displace up to 20 percent of the top 100 IT services providers.
A Nexus of Forces, including cloud, big data, mobility and social media, along with continued global economic uncertainty, will accelerate the restructuring of the nearly $1 trillion IT services market. By 2015, low-cost cloud services will cannibalize up to 15 percent of top outsourcing players’ revenue, and more than 20 percent of large IT outsourcers not investing enough in industrialization and value-added services will disappear through merger and acquisition. This will limit and endanger the typical offshore/nearshore approach run by dedicated IT services providers and create low-cost options onshore or facilitate a globalized approach to staffing. CIOs should reevaluate the providers and types of providers used for IT services, with particular interest in cloud-enabled providers supporting information, mobile and social strategies.