Home Business News Ongoing ‘economic uncertainty’ leading to 42% of enterprises ‘reducing costs over next year’

Ongoing ‘economic uncertainty’ leading to 42% of enterprises ‘reducing costs over next year’

by LLB Reporter
28th Jul 23 6:27 am

New research from Daisy Corporate Services (Daisy) has revealed approaching half (42%) of enterprises are prioritising reducing costs over the next year, due to ongoing economic uncertainty. At the same time, more than a third (37%) of enterprises identify establishing or improving a digital business model, and driving revenues (36%), as their other main priorities.

The survey of 365 IT and business leaders found that organisations continue to concentrate on cybersecurity, with 25% citing protection against cybercrime as a key priority for the next 12 months. In fact, 28% believe an increase in cybercrime will be their main challenge for the next year, with over a third (36%) of respondents stating that cybersecurity concerns currently hold them back from doing their job effectively. As a result, a quarter (25%) of respondents say they plan to invest in cybersecurity products in the coming year.

“There is no doubt that it is a challenging landscape for many businesses right now, with economic concerns and heightened cybersecurity threats adding pressure. Any moves made by enterprises to introduce new technologies and digital models must be carefully considered. It’s crucial that investments are underpinned by robust cybersecurity that safeguards the business – as the financial and reputational damage of a security breach could be costly,” said Lyndsey Charlton, COO at Daisy Corporate Services.

Almost half (49%) of IT and business leaders believe inefficiencies throughout their business create a blocker for success. However, 38% believe that new technologies can help improve operational efficiency.

Business-wide expenditure on technology is expected to continue over the next 12 months, with 33% confirming that introducing or improving technology transformation is their investment priority. A third (33%) of businesses say they will prioritise investment in cloud and hosting services, and a further 29% plan to focus is on unified communications solutions. With a clear emphasis on modernisation, replacing legacy IT technology is the priority for a quarter of enterprises (25%).

Organisations also continue to closely monitor the environment, social and governance (ESG) credentials of the technology partners they work with. Two-in-five (41%) enterprises say the ESG strategy of their partners is “very important” to them.

Enterprises today require a considered modernisation strategy to ensure new technology upgrades truly deliver benefits for the organisation, while also helping them to meet their ESG goals. This underlines that it is essential businesses have the right blend of technology with a mix of internal and external skills,” adds Charlton.

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