The past year has seen the primary stage of recession with many companies falling back through layoffs and cutting costs. While 2023 is predicted to be the year of the economic downfall, the technology market has predicted a different outcome for itself. Tech leaders across the globe are understanding the impact of the past three quarters and how the numbers are set to be impacted in the coming year. World over, many industries and companies are collapsing in huge numbers. However, tech leaders have a fairly unique perspective on the same.
EY, one of the largest tech companies in the world with a presence in over 150 nations conducted a survey with 250 technology leaders from the US to understand their take on the economic downturn and how they plan to deal with this period. The survey resulted in surprising outcomes wherein 74% of leaders have agreed to be facing an economic crunch yet they see this time as a period of business benefit. The signs of recession have become prominent with layoffs in Amazon, Microsoft and Google in most of these companies yet tech leaders are seeing this as an opportunity to grow. Here are the key predictions by the tech leaders in the economic survey recently conducted:
As the pandemic was a surprise stage of growth, over 64% of tech leaders have agreed to see the forthcoming recession as a beneficial period. 50% of the group had even shared that they are planning to initiate growth plans for their companies which will be structured for the coming two years.
Talent is still a priority and companies are not ready to comprise investing in good talent. However the layoff rates speak a different story, 90% of the tech leaders have stated that they are keen on hiring new talent as it will be even more crucial during this stage.
Flexible hiring and remote jobs will be the highlight of the coming year as the tech leaders have called them the cost-cutting gateway of the season. Tech leaders have started investing in diversity and inclusion and employee health and well-being as their key priorities. The report stated that hiring freelancers is easy to cut down on multiple costs involved in the recruitment process.
Expanding the business scope by involving new technologies is considered the key to tackling recession. Over 90% of leaders are preparing their supply capacity for a potential demand during a recession. Commonly reported technologies include data analytics, 5G, artificial intelligence and machine learning. The leaders are seeing these technologies to be in high demand during the recession downfall and are working on more efficient operations.
These extremely different opinions originate from the premise that technology is the key to fighting economic crunch even during the worst economic downfalls. Thus, when other industries fall apart, the tech sector has the potential to grow. With the assistance of quality tech tools, the economies get an upper hand in dealing with crises as proved during the pandemic. Other recent crises like Brexit and the Ukraine war have also given a boost to the need for technology and higher dependency on outsourcing projects.
Companies like LinkedIn have even advised smaller tech companies to keep technologies like artificial intelligence and big data on their radar even if they do not fit the budget right now. The tech industry is a business driver and will be in the demand the most during the time of an economic crunch. In fact, many leaders have advised companies to simply invest more in their tech and improvise as much as possible. In the past, tech investment was considered a casualty however post the pandemic the game has completely changed.
One of the biggest highlights of different surveys was the emphasis on bench resources. The leaders from different parts of the globe have suggested that the tech industry has been running smoothly with remote workers and they are the gateway to cutting costs which can be used for further investment. Since new technology has always been in dire need of skilled staff, hiring constantly and without any long-term consideration is the reason for such high layoff rates. Past Twitter CEOs have also talked about how they have let the company grow without proper planning in the last two years.
Market leaders have marked technology as a market differentiator and thus aim to suggest that technology will be the sole savior in times of economic backfall. As many companies from different industries plan to retain or gain new clients during this season, their mark of supremacy will come from technological advancement. They have reportedly suggested that cloud and artificial intelligence will be in demand and will be keenly improvised based on different sectors.
One factor highlighted was the area of investment for tech companies in the coming future. The investment should be consistent with the type of demand that would come from the market. Luxury options like drone technology might not thrive during this season, however, artificial intelligence would be the right area to invest. Thus the leaders have pointed out the need to prioritize need over luxury and how tech companies can prosper in these tough times by being smart. This calls for action to create a business network community and seek what they desire and how their market trends are evolving. Working with digital marketing freelancers can be a great way to gain clients and also cater to the actual needs of current clients which will eventually lead to smart business strategy for the coming couple of years.
The market leaders have quickly pointed out how companies like Apple and Dell can afford to invest in luxury technology and would be able to bear the consequences of failure; however, many growing tech companies should refrain from following in their footsteps. These market changes are primal to the basic route of highs and lows that eventually bring consistency to the market. And that being said, the tech industry can see growth if the cards are placed right and simpler operations like recruitment and infrastructural investment are seen as the scope for cutting costs. Unlike the overpopulation of companies which was not the best move during the pandemic.