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The economic crisis is a palpable reality today. Price inflation, the low availability of fuel, and the slow recovery from Covid-19 have meant that current companies have to develop in an unfavourable environment. According to experts, the key to addressing this situation involves investing in technology since it is the only effective tool for increasing companies’ productivity and efficiency without incurring costs that are impossible to assume.
If you want to know everything that investment in technology can do for current companies and the associated benefits, keep reading, and we’ll tell you.
Where to invest in technology for companies?
Executives’ job has shifted from preparing their organizations against disruption to preparing their products and services so they stay relevant in the marketplace despite it. Among the current challenges that companies face, the constant financial uncertainty when living in a highly polarized world is worth noting.
This makes the market increasingly volatile, demanding that the business world adopt a more operational model and implement different technologies easily and quickly. In addition, these technologies must be scalable and seamlessly respond to the associated cybersecurity demands.
Both the CIOs and the CEOs of large companies are asking that investment in technology be directed at three specific sectors:
- Reduce operating costs
- Optimize human resources
- Drive automation
These three elements are key when it comes to improving the operation and development of companies. They make it possible to generate a substantial impact with tangible value in companies and are the fundamental basis of the digital transformation of the current business sector.
How is investment in technology changing the business ecosystem?
The main guidelines that current companies are following regarding investment in technology are the following:
Increased spending on information technology (IT)
IT spending has been increasing for years past. In fact, according to Gartner, spending on IT consulting and IT services will increase by more than 10% in 2023. However, an important element to remember is that even if the increase in investment in technology is expected, both CEOs and CIOs of companies are very cautious when it comes to investing.
In this sense, many services that were previously performed internally are being outsourced through managed service agreements. Likewise, providers are required to re-offer existing managed services regularly. In other words, the management teams are strongly committed to investment in technology but always seek to guarantee that their expenses generate the best possible value for the companies.
Priority investment in cloud technology
Predictions indicate that cloud spending will exceed $1.3 trillion by 2026. In this sense, data hosting and application migration are significant cost elements for companies.
Additionally, as major global business needs become more dependent on the cloud, more and more investment in technology is focused on improving cloud management, development, and expectations. In this sense, increasing speed, reducing costs, and improving the resilience of operational models and processes has become the obsession of new investments in cloud technology.
Increased supplier turnover
IT spending was a topic that needed more importance for several years. On average, 70% of companies maintained the same portfolio of IT providers. However, in 2022 this pattern has begun to change.
In this sense, there is an increase in the turnover of providers in general and IT service providers in particular. In addition, more and more companies are looking to take advantage of technologies powered by artificial intelligence (AI) that allow them to add value to their businesses.
Most business processes can be significantly optimized using different types of AI-based software, an important competitive advantage in a saturated market and economy.
Customers are looking for better results at a lower price, and using AI and natural language processing features improves the shopping experience. This makes it possible to provide the shopping experience with added value that many customers consider the key and differential factor when choosing between one company or another.
Conclusions
The current uncertainty of the economy means that most investments involve a high risk due to the market’s volatility. However, investing in technology is a safe bet for companies since it allows them to reduce operating costs, optimize human resources and drive the automation of business processes.
In other words, the digital transformation of companies makes it possible to improve the conditions of productivity and efficiency of companies, so investment in technology for the said process is seen as a safe investment both in the short and long term.
Investment trends in technology have changed from a few years ago. In this sense, an increase in spending on IT investment is being perceived as a greater investment in cloud technology and a greater rotation of providers of these services.
Also Read: Eight Business Opportunities In The Technology Sector
