Inflation will affect the 2023 MSE budget
As MSE technology leaders head into the 2023 budgeting season, they face challenges including inflation headwinds and a potential recession. Due to the size and scale of their operations, small and micro businesses tend to feel the effects of inflation first and are most vulnerable to long-term negative impacts.
In the 2022 Gartner CEO and Senior Business Executive Survey, 86% of MSE CEOs believe inflation will rise significantly, with the majority expecting to feel the effects over the next 12 to 36 months. The most common response of MSE CEOs to inflation is to raise prices, followed by cost optimization.
“Historically, the response to economic uncertainty has been to cut costs rather than support new or additional investment,” Cisek said. “In a typical MSE, however, IT spending averages 4.7% of total revenue, leaving little room for cost optimization efforts.
“In times of economic uncertainty, digital investments must align with business priorities and support finance’s cash flow strategy. MSEs can invest in solutions that deliver financial or productivity gains for IT, employees and customers by rationalizing their technology portfolio plan to best manage inflation.”
Gartner clients can learn more in “Top 3 Technology Priorities for Midsize Businesses.”
Benchmark your MSE peers’ technology adoption plans using Gartner’s 2022-2024 Technology Adoption Roadmap for Midsize Enterprises.
Gartner IT Symposium/Xpo 2022, the world’s premier conference for CIOs and other IT executives, will present more analysis on MSE IT trends. In a rapidly changing world, CIOs and IT executives will learn how to seize the moment and deliver the vision and outcomes needed to take their organization to the next level.Follow conference news and updates on Twitter using #GartnerSYM.
Upcoming dates and locations for the Gartner IT Symposium/Xpo include:
October 17-20 | Orlando, FL
31 October – 2 November | Tokyo, Japan
November 7-10 | Barcelona, Spain
November 14-16 | India
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