I have a theory that the days of established businesses that don't know tech is dwindling. A lot of companies which has adopted tech has started building a small foundation of talent internally. I think you're seeing this trend accelerate with the large tech companies laying people off. I have heard about top grade data science talent landing at some small sized health plan.

My companies fastest growing competitor is "internally sourced departments" of the services we provide.

You confirm my observation as well. Even motel chains have developers building internal tools these days

Yes computer savvyness is on the rise, and have been for decades, and this will continue. But there are many levels: Ability to be a competent user, and competent buyer, ability to build it themselves. Then there are big difference in buy vs build culture. And preferences for type of solutions that are default buy vs default build. And finally, smaller and medium sized organizations are less likely to have internal teams. All this should be analyzed for the specific market, product and customer segment one targets.