Almost two-thirds of UK organisations say they will focus on reducing their costs this year, according to new research from Daisy Corporate Services (Daisy). This represents an increase from 42% in 2023, as nearly half (46%) of organisations confirm that rising costs currently present the biggest challenge to their business.
The study of 404 IT and business leaders found that financial constraints (37%), legacy technology (31%) and cyber security concerns (27%) were the biggest barriers preventing them doing their job effectively. Nearly a third (32%) of respondents said enhancing their cyber security provision, including cyber security resilience plans, was a priority this year. A further 32% stated that building or improving their digital business model was a key focus. Many organisations recognised the need to streamline their current technology supply chain over the next 12 months, with three-quarters (76%) describing this as important or essential.
“IT and business leaders are acutely aware of the challenges posed by rising costs. While doubling down on cost savings, organisations are also attempting to build long-term resilience to future proof their operations. It’s no surprise that many enterprises are looking at adopting new digital models and strengthening their cyber security posture, but these upgrades must be done in a cohesive and cost-effective manner,” said Lyndsey Charlton, COO at Daisy Corporate Services.
Cloud leads the way for 2024 technology investment plans
Two-fifths (40%) of respondents confirm that technology should help their business improve operational performance over the next year. Almost two-thirds (63%) of organisations said cloud services would be their investment priority over the next 12 months, followed by cyber security (47%), and mobile and wireless solutions (40%). With a growing number of artificial intelligence (AI) use cases and benefits emerging, over a third (37%) of organisations see AI technology as an investment priority.
Beyond budget constraints, concerns over data security were cited as the biggest barrier towards making technology investments in the next year according to nearly half (45%) of the respondents. A changing workforce (36%) and unclear benefits (33%) were the other main reasons which would prevent organisations from making significant technology investments.
ESG remains a priority
The research reveals that organisations are committed to their environmental, social and governance (ESG) responsibilities. More than three-quarters (78%) state the ESG commitments from suppliers is a high or very high priority. In addition, 46% of enterprises confirm they try to extend the lifespan of devices by repairing or refurbishing as needed.
“Technology will continue to play an important role in helping organisations to become more efficient and meet their ESG goals. However, without a solid strategy underpinned by the right skills, organisations may fail to fully realise all the benefits. At a time where budgets are coming under
increased scrutiny, it is vital that organisations work with trusted partners that can help them optimise and future proof their IT investments,” added Charlton.
