Navigating Economic Uncertainty in 2024: IT Leader Perspectives
What impact did economic uncertainty have on IT organizations in 2023, and how do CIOs and IT leaders plan to navigate economic challenges in 2024?
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2023 global economic factors led many to increase scrutiny on IT spending, reduce budgets or freeze budgets
Leaders are concerned about negative impacts in 2024, with inflation being the most cited risk factor above recession and global instability
Most are confident they will have sufficient investments in IT infrastructure and technology, but less confident about talent
Global economic factors in 2023 led to more scrutiny of IT spend
More than half of respondent IT organizations experienced increased scrutiny of IT spend (56%), budget reduction (54%) or budget freeze (53%) as a result of economic conditions in 2023.
Have any of the following impacted your IT organization in 2023 specifically as a result of the global economy? Select all that apply
Bonuses canceled 11% | None of these 4% | Other* 1% | Don’t know 0% n = 188 *Other includes: “Acquisition”
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Question: Any final thoughts to share on how economic uncertainty has impacted your IT organization? Please share any specific examples or insights you have.
We have gone through several downturns since 2008. We follow the same plan every time. Reduce discretionary spending, reduce new investments and reduce staing (first contractors, then employees). If that doesn't reduce spending enough we do the exercise again
Most are concerned about macroeconomic impacts on IT in 2024
59% of respondents are concerned about potential adverse outcomes for their IT organization in 2024 as a result of the global economy.
Are you concerned about potential negative outcomes for your IT organization in 2024 due to the global economy?
71% of leaders who expressed concern about negative outcomes (n = 111) see inflation as one of the greatest risk factors in 2024. Recession (59%) and geopolitical instability (47%) are also significant concerns for many.
In your opinion, what economic factors would pose the greatest risk of negative outcomes for your IT organization in 2024?1 Select up to 3
The need to invest in new technologies 38% | Supply chain issues 36% | Currency fluctuations 26% | Rising energy costs 18% | None of these 0% | Other 0% n = 111
Question: Any final thoughts to share on how economic uncertainty has impacted your IT organization? Please share any specific examples or insights you have.
It has been increasingly difficult to get quality talent and receive goods due to supply chain issues. In addition, because of inflation and other economic hardships, sta members are disgruntled and seeking more and we can't provide, so they get even more upset affecting productivity.
IT leaders anticipate sufficient technical investments, but less so for talent
Despite macroeconomic concerns, most leaders are feeling confident about having suicient investments in their IT infrastructure (57%) and technology (56%) in 2024. However, 28% are not very or not at all confident their talent investments will be sufficient.
How confident are you that your IT organization’s investment in the following areas will be sufficient in 2024?
Note: May not add up to 100% due to rounding
n = 188
Question: Any final thoughts to share on how economic uncertainty has impacted your IT organization? Please share any specific examples or insights you have.
We are proactively making hard decisions around where we need to invest to get ahead of the future [headwinds] that we see coming.
Mostly we've had to reevaluate staffing strategy and upskilling priorities.
In their own words...
Question: Any final thoughts to share on how economic uncertainty has impacted your IT organization? Please share any specific examples or insights you have.
Nothing is certain anymore. We build a plan and then contingencies.
Projects are being delayed and hiring of new staff has significantly slowed down. However, needs are still high resulting [in] fewer people doing more.
The axiom that ‘change is the only constant’ is more true now than ever. The long term plans need constant review, the people skill aspect is a risk and, more and more, managed services is seen as a way to go.
Respondent Breakdown
