Top 5 predictions for European business in 2021 - Forrester

Forrester today released a report outlining its top predictions for the European market in 2021.Channel Partner Insight has broken out Forresters' key predictions for the European IT channel to take notice of going into next year:

1. AI will thrive in a remote work world

VARs and MSPs who invest in AI will find themselves well placed to monopolise on one of 2021's top technology trends, Forrester predicts.

The market analyst firm sforecasts that more than 60 per cent of B2B sellers will be enabled by AI and automation in 2021.

"To up-level sellers, and positively impact sales, arm your team with sales tools that have embedded AI and automation functionality," Forrester's Europe Predictions 2021 report advises.

Some 57 per cent of the channel sales leaders they spoke to said they plan to make deeper investments in tools with AI and automation in the upcoming fiscal year.

A key driver for the investment is a recognition that a largely remote and digital working environment is here to stay in one form or another.

"To thrive in 2021 and beyond, B2B sellers will need the right enablement tools to enhance their productivity and engage with prospects and customers in more meaningful ways."

More specifically, Forrester highlights sales tools that capture and automatically upload buyer and seller activity data to CRM systems will be particularly useful "to finally take sellers out of the data entry game."

The analysts say partners will then have the opportunity to hone a competitive edge by not having to spend as much time on administrative drudgery.

"Relieved from endless administrative work, sellers will have the time and space to conduct deeper customer research, cull insights from data, and orchestrate more meaningful interactions with buyers.

"As the amount of buyer engagement data increases, AI can surface patterns, guide the seller to the next best action, and identify the buyer's preferred channel."

2. European workers set up shop at home

More than one-third of European white collar workers will work remotely full-time in 2021.

That's a change from four per cent in 2019.

"The COVID-19 pandemic transformed remote work from privilege to mandate - that changes the employee/employer dynamic and the expectations accordingly."

Forrester predicts that this shift will necessitate a change in labour laws, which will impact recruitment.

"Cross-border work will grow. As it does, digital nomad insurance will flourish. Businesses will use employers of record, professional employer organisations, or combinations thereof to comply with local tax and labour laws.

"Employers must use these services in a non-exploitative fashion (if you use it for pure labour cost arbitrage, regulators will crack down) to attract and retain talent."

3. A "critical year" for European cloud

One key question for 2021 is to what extent the GAIA-X initiative will impact European cloud.

As Channel Partner Insight has reported, European partners and the French and German governments are seeking to end a reliance on American and Chinese cloud giants through the creation of Europe's flagship infrastructure project.

Co-founder of the new legal entity, OVHcloud CEO, Michel Paulin, has told CPI GAIA-X will have solutions to put to the market by the end of this year.

However, Forrester is forecasting that the coalition needs to prove itself to the market or risk being a damp squib.

"Europe is buzzing about the new GAIA-X sovereign cloud initiative. [But] Three US-based hyperscalers — AWS, Microsoft, and Google — are the primary public cloud vendors for 46% of respondents at European companies, and their expanding network of European data centres and compliance with national rules will help them keep growing

If it does introduce compelling solutions, the pendulum could swing the other way, and potentially lead some European end users to abandon cloud providers who don't engage with GAIA-X.

"If GAIA-X develops sensible policies for data sharing and use, we expect all major cloud providers to engage; if your provider doesn't, it's time to find a new supplier."

4. CIOs embrace cloud-first

Forrester predicts that 30 per cent of businesses will continue to accelerate their spend on cloud, security and risk, networks, and mobility.

The analysts say this will include those who are currently struggling as a result of lockdown, in a gambit to "leapfrog less wily competitors and gain advantage coming out of the pandemic."

Those who don't find the budget look consigned to fall behind.

"CIOs who are slow or unable to adapt will become mired in short-term fixes that lead to digital sameness, not differentiation, and their top talent will get frustrated and leave for more visionary pastures."

5. The rise of chatbots

More than a third of B2B technology buyers are set to rate chatbots as a top-10 engagement channel.

Forrester says that an accelerated adoption of marketing technology such as chatbots will be driven by customers shifting their preferences toward digital channels.

This technology has proven effective at the early and late stages of the buying cycle - for example, in optimising programmatic advertising bids or recommending next-best content in a sales enablement solution."

However, the analyst firm warns partners that "ham-handed" chatbots will not cut it.

"Fewer than 20 per cent of B2B companies are using AI to create conversational experiences or to optimise personalised engagement at scale.

"Many of today's implementations are ham-handed, yielding nothing more than a click pathway to a human seller."

What will be needed is virtual assistants leveraging first- and third-party data along with AI and machine learning.

"Given these improvements, we predict more than a third of B2B technology buyers will rate chatbots as a top-10 engagement channel in their buying journeys."

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