By 2021, digital transformation will add an estimated US$9 billion to Hong Kong’s GDP, and increase the growth rate by 0.5% annually, according to a new business study released by Microsoft in partnership with IDC Asia/Pacific.
The study found that 79% of jobs in Hong Kong will be transformed in the next three years, 60% of which will be redeployed to higher value roles, or reskilled to meet the need of the digital age.
“What is encouraging is that 48% of respondents are confident that their young employees already have future-ready skills that will help them to transition to new roles,” said Cally Chan, general manager, Microsoft Hong Kong.
While there is also concern about job displacement, the study found that 23% of new jobs are expected to be created from digital transformation, which is about the same number to be automated, or about 19%; in other words, the effect will be slightly positive.
“Despite the impact on jobs being mitigated, organisations should still work on partnering with governments and educational institutions to provide feedback, training and reskilling programs so that the workforce is equipped with future-ready skill sets,” added Chan
Skills of the future include; complex problem solving and creativity. Organisations need to focus on attracting and retaining the best digital talent in three key areas of artificial intelligence (AI), big data and cloud computing.
The study predicts a dramatic acceleration in the pace of digital transformation across Asia Pacific’s economies. In 2017, about 5% of Hong Kong’s GDP was derived from digital products and services created directly through the use of digital technologies, such as mobility, cloud, Internet of Things (IoT), and artificial intelligence (AI). This is expected to surge to around 60% of Hong Kong’s GDP by 2021.
“For organisations to gain the benefits of digital transformation, they need to develop a data-driven culture and build up a strong digital ecosystem – from employees to customers, to partners. This will grow a value chain by gaining new insights through new data sources, expanding their digital products and services, and ultimately building their data as a capital asset,” said Ralph Haupter, president, Microsoft Asia in a press release.
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