Technology Predictions for 2016
If industry reports are to be believed, then 2016 is not going to be a very happy new year for IT vendors. As the year 2015 drew to a close, there was a storm brewing up on the horizon for the IT industry. This storm is expected to transform the IT industry in a way that may not be favorable to a significant section. Silicon Valley professionals have a bad habit of throwing around the word “disruption” at any change they come across, which has cost the word its meaning and magnitude. So, saying that 2016 will witness disruption in IT industry needs a bit more explanation for most people. It is best explained by noting the big changes that the year will bring.
IT Vendors Will Face a New Level of Competition
The legacy vendors in the IT industry have not registered any growth in the recent times. The industry itself has reached a point of stagnation. Innovation from vendors has taken a hit, and hence the products they supply are getting commoditized. Consequently, large and small players alike, are facing stiff competition. It is expected that 2016 will mark the beginning of the slow erosion and by the end of 2020, roughly 30 of the vendors will either go out of business or be consumed by other players.
Cutthroat Competition for Talent
It has been known for some time to the businesses involved in the technology industry that the talent pool is very limited and there is a constant fight going on to attract the best talent. Well, this competition will get a lot worse in 2016. A number of businesses will try to solve this problem either by outsourcing part of their operations or by expanding their presence to gain access to untapped potential across the world. Remote workers, from domestic to international in India, China, Brazil, and other developing nations will continue to emerge as talent destinations, with vast reserves of untapped skilled talent pool.
Big Data Will Continue to Grow
Big data has revolutionized a number of sectors completely. There are hardly any sectors that are not using big data as of now. Even those will eventually embrace it. It is no secret that big data and its applied fields – machine learning and artificial intelligence – will become more relevant. Machine learning will improve in sophistication; prediction algorithms will be able to deliver results with higher accuracy. Best examples of this are facial recognition, speech recognition, and even gesture typing. 2016 will be a milestone year as big data will become a mainstream technology.
Up until now, most of the businesses have been slow adopters of IT technology. Any technology requirements such as web application development, mobile application development, and so on, were more often than not outsourced. This will change in 2016. If organizations plan to stay relevant in 2016 and beyond, they will embark on a mission of digital transformation. They will cease to outsource tech requirements, and take it up themselves. IT departments in organizations, be it tech or non-tech organizations, will witness newfound focus in all types of companies.
To put things in a nutshell, the IT industry is set for a period of standardization. A significant amount of inefficiencies will be chafed off. In other words, larger and more established players have a greater chance of survival because more customers use their products and others will follow. On the other hand, newer players, no matter how innovative their solutions, will find it hard to compete in 2016.