For every business, technology is critical to successful operations in both good and bad times. In challenging times, it’s important to consider whether your technology spending is helping to deliver meaningful cost savings and protecting margins.
Technology is an investment, not a cost.
Gartner has forecasted that worldwide IT spending will grow 5.1% in 2023. Business leaders increasingly understand that investing in tech has become even more necessary to propel efficient, scalable, and profitable operations.
In economic downturns, you should be more careful with spending. But that shouldn’t mean you cease to continue to invest in technology. Delaying all capital expenditure could hurt your business in ways you can’t afford during difficult times. The effects of diminished worker productivity and satisfaction due to IT operational and security problems should be considered when deciding whether to invest in technology or freeze spending.
Business critical IT infrastructure projects that help to streamline your business, drive productivity and lower operating costs should always be a priority. According to leading experts from CNBC, Gartner, and more, the top technologies that can help in times of recession are:
- AI and machine learning
- Cloud technology
- App development
- Digital twins
- Data science and data engineer teams
- Digital business analysis tools
- Remote and hybrid work technology
- Cloud applications
- Workflow and management digital solutions
- Customer and brand experience technology
- AR and VR
“Investing in the right digital initiatives at the right cost can blunt the negative effects of economic pressures in the short term and build long-term competitive advantage,” Gartner said.
There is no one-size-fits-all solution. Every business is different and requires its own strategy and roadmap when it comes to tech tools that can turn a recession into an opportunity.
But leveraging available technology to navigate business challenges with digital tools is a great place to start. Here are some examples:
- Cloud Migration:Migrating to the cloud can reduce infrastructure spending, energy and maintenance costs, and personnel requirements. The cloud also opens endless new tools for business opportunities.
- Reimagine and automate workflows:Changing the platforms and systems of work environments can cut costs and drive performance.
- Predictive and insightful: Gaining greater data insights can make your organization faster and leaner, including in its decision-making.
Undoubtedly, we are experiencing challenging economic times. But challenges can provide opportunities. Working with the right IT service provider who advocates the strategic and effective deployment of business technology can not only help you stay the course but come out even stronger.
Learn more about how Utilize can help to turn your successful business into a powerhouse with ASCEND.Speak to a member of our team today