Boardroom leaders slash tech budgets in tough economy
Latest research reveals that 50% of boardroom leaders have conceded to reducing their tech budgets during the past year. This is primarily due to rampant inflation, fluctuating interest rates causing significant economic uncertainty, and the pandemic's effects, according to a new report, "Tech and the Boardroom," by The IN Group.
The US and UK boardrooms have been most harshly impacted by this unsettling economic landscape, with budget cuts reported by 56% and 51% leaders respectively. Conversely, less severe reductions have been witnessed in European countries like the Netherlands and Germany, where only 41% and 39% of leaders have implemented cuts.
The data was obtained from 700 tech and non-tech C-level executives from the UK, US, Germany, and the Netherlands as part of the report. The narratives encapsulated the leading talent challenges they encountered as a result of the prevailing economic conditions.
The report, however, signals a positive turn with 81% of respondents intending to augment their tech investments in the forthcoming 12 months. Nick Baxter, CEO of The IN Group, underscored the vitality of technology investment for boardrooms. He stated, "It's essential for the boardroom to invest in technology to drive digital transformation and to stay ahead of the game, especially in the face of economic turbulence. Overall, it's the responsibility of the entire C-suite to understand the power that tech such as AI and automation can bring, being the driving force for operational efficiency."
The study also discovered a shift toward rapidly evolving technologies such as AI. Almost 78 per cent of respondents plan to prioritise investment in automation in the next year with an objective to economise and enhance efficiencies, and thereby drive overall operational efficiency and business growth.
The results demonstrated that most of the respondents believe their business and technology strategies to be congruent, with the primary focus being value creation. Breno Gentil, Regional CIO, Heineken expressed, "Technology has consistently delivered value for our business, enabling growth, driving productivity, simplification and future-proofing our company."
In terms of work models, nearly 48% admitted to returning to their regular in-office schedules. Firms revealing considerable disparity when it comes to attendance policies include CEOs (64%) who are advocating for a return to the office versus tech leaders (42%). The data also highlighted a distinct dichotomy between markets with 64% of US respondents operating in the office full time, contrasted with only 37% in the UK and a mere 33% in the Netherlands.
