Retailers raise ICT budget in 2022: GlobalData

Over 80% increased investment amidst digital tech trends in improving supply chain and customer experience. 

Around 83% of retail enterprises raised their budget for ICT in 2022 as the adoption of technology for streamlining supply chain and improving customers’ experience increases, GlobalData reported. 

In its Enterprise ICT Investment Trends Retail, GlobalData found that 55% of companies considered as key ICT decision makers in enterprises saw a 5% increase in budget; whilst another 28% saw a significant increase of more than 6%. 

“COVID-19 forced many retail enterprises to adopt digital technologies to ensure contactless commerce, with many countries enforcing strict physical distancing and lockdown rules. Retailers are utilizing new ICT technologies to enhance the shopping experience for their customers, boost operational effectiveness, enhance industry competitiveness, and implement digital transformation of their businesses,” Aasif Iqbal, Technology Analyst at GlobalData, said.

“So, on one hand we see increased investment on emerging technologies such as Internet of Things (IoT) which helps in monitoring the overall supply chain process, but on the other, we see a greater emphasis towards investments in contact centers and communication solutions that help in transforming the overall customer communication channel to improve customer experience.”

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Moreover, the report found that more than 60% of the respondents claimed that their individual enterprise hardware and software budget allocation for communication devices increased in 2022. 

“Retail enterprises are also not shying away from using disruptive technologies to achieve digital transformation, as indicated by the survey results, where more than 65% of the respondents from the retail sector confirmed that their enterprise ICT budget allocation for disruptive technologies has increased in 2022 over 2021 with IoT and edge computing proving to be the most popular investment areas,” Iqbal said.