Due to COVID-19, enterprises are starting to develop a post-pandemic recovery plan. These plans will be viewed from a different lens than they were before – instead of growth and experiences there will be more emphasis on savings, agility, and resilience. Budgets will be tight and deals will be postponed, IDC predicts IT spending will decline across multiple industries, but predicting a bottom is a work in progress. Tech projects will need to reduce costs in areas like commercial real estate, capital expenses, labor and processes.
Pre COVID-19, IT spending had three primary characteristics:
1 – Business leaders controlled the budget more than the CIOs
2 – Projects aimed to improve customer experience as well as increase revenue
3 – Going digital was a priority
The third characteristic will potentially be the only one that sticks post-pandemic. The IT spending race will revolve around being more digital as a way to cut costs and grow over time. COVID-19 has proven that companies are capable of working remotely without much disruption. Areas of spending in travel, offices, and data centers will be heavily scrutinized post-pandemic. The prevailing wisdom that a service cannot be provided without working in an office has been proven wrong. Employees will start to insist on working remotely and the necessity of air travel and in-person meetings will be questioned. Business executives will demand that IT invest more into app and infrastructure modernization, high-performance networks, high-availability architectures, automation for speed and reliability, and cloud for scale and flexibility.
Playing this IT spending environment out over a few years will decrease costs and increase efficiency. There will be diversity in terms of sales channels, supply chains, and work methods. Proven Optics can work alongside you as this new IT playbook comes to fruition. We deliver IT Financial Management and Technology Business Management services that will drive results and help you manage and understand your IT spend as you start to plan for post-pandemic recovery. Build your IT Value Story™ with us today.
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