Tech

Business performance is declining due to lack of IT cost efficiencies and high inflation –

Crayon urges businesses to create cost efficiencies through technology optimization

Despite new research from Deloitte showing that 98% of CFOs expect operating costs to continue to rise, only 7% of firms have optimized their IT costs, reveals global IT services and innovation leader Crayon. In the UK, as few as 3% of IT leaders believe their technology spending is as economical as it could be, exposing businesses to potential cost – leak operations.

“During the pandemic, we saw that many businesses were going digital without much of a clear strategy to accommodate the growing remote workforce during restrictions and restrictions. Two years later, IT departments have less visibility on their IT stack across their hybrid workforce. This means that cost saving opportunities are not being capitalized as expenses are rising and we are seeing more inflationary pressures on the market. This great storm is disrupting leaders’ ability to deliver business growth, ”says Melissa Mulholland, CEO of Crayon.

“Inflation will inevitably re-prioritize budgets, but at the same time leaders know that creating operational efficiencies can no longer be ignored. It is impossible to run a modern business without software. To keep up with competitors and rising prices, businesses need to tackle cost cuts and invest in their organisation’s IT portfolio, which can lead to innovative revenue streams. ”

This is clear in Crayon ‘s new research, conducted in partnership with Sapio

Research, voting 2,050 IT decision makers by major organizations (200+ employees) worldwide.

The survey also shows that the majority of organizations (93% worldwide and 97% in the UK) acknowledge that their spending needs to improve, despite 92% of UK-based leaders listing optimization use cost structure as a high priority for their business. However, 94% in the UK and 80% worldwide agree that their organizations would benefit from assistance in breaking down costs and identifying areas for optimization.

In the UK, a third (32%) of technology leaders indicated a lack of knowledge on how to optimize their cloud spending, while another third (34%) stated that they do not have the time to look for the best markets. Over half (54%) of global IT decision makers see IT cost optimization as their biggest business challenge. This is followed by 34% citing the implementation of cloud and facilitating migration as a major task, while 39% citing in-house knowledge of new technologies such as cloud and AI as their top issue.

Mulholland added, “IT investment is not declining, it is really just rising. According to Gartner, IT spending will reach more than $ 4.4 trillion by the end of this year, representing 4% growth. It is surprising that so few businesses currently believe that their IT spending is as efficient as it could be, but it is even more worrying that many decision makers do not know where to start. ”

“IT costs could be cut in the long run while generating additional revenue streams while planning ahead for investment in software such as cloud spending management tools and AI. Firms should also use external consultants where possible to help negotiate software licensing markets, as this can lead to significant savings for those in budget control. If leaders start making changes now, they will be better able to cope with the inflationary crisis, or at least significantly reduce its impact on organizational growth.

About Crayon
Crayon is a customer-focused IT innovation and services company with over 3,300 staff across 47 countries. We optimize businesses’ IT estates to help them innovate with the expertise they trust. Our services create value for companies to succeed today, and scale for the future. For more information, visit

www.crayon.com.

Business performance is declining due to lack of IT cost efficiencies and high inflation –

Source link Business performance is declining due to lack of IT cost efficiencies and high inflation –

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