We’re only a month into 2024, and the business landscape remains volatile. The market is rife with tension as tech layoffs and organizational restructuring remain frequent. Regardless, tech leaders at these organizations are expected to adopt new technologies and maintain differentiation in the market, all while grappling with a shortage of skilled talent. These unprecedented circumstances call for constant adaptation of strategy and operating plans. In this blog post, we will touch on the key insights from our newly published report TIER: Forrester’s 2024 Technology Insights And Econometrics Research Plan and discuss how tech leaders can optimize performance in the year ahead.
- Focus on skills-based talent practices to address the widening labor challenges. Technology’s integral role in organizational success has fueled a demand for skilled tech talent. In 2024, the gap between skills demanded and skills available is expected to widen further. To address this challenge, tech leaders should focus on adopting skills-based talent practices and develop a talent strategy for the future.
- Optimize capex by investing in long-term growth. Given the uncertain economy, companies with strong cash positions are likely to defer capital expenditures as a precaution against risk. Now, more than ever, tech leaders have a real opportunity in helping maintain adequate cost structures. Tech leaders should invest in initiatives that safeguard long-term growth while considering the impact of interest rates and inflation on the balance sheet.
- Budgets should focus on the transformation potential of software and AI. Forrester forecasts that in 2024, tech spend will increase 5.5%, up from 4.5% in 2023. What does this mean for tech leaders? While specific initiatives may be scrutinized, organizations will continue to invest in technology that backs long-term growth. Software and AI are two areas that stand out in most tech executives’ budgets. Investing in these areas can drive optimization and continuous improvement of business results.
- The full impact of generative AI on productivity is still unfolding. Technological advancements like generative AI may not immediately reflect in productivity numbers, as their gains often lag. However, early studies predict that generative AI will have a significant impact on long-term productivity. It will take years to flatten the AI learning curve and unpack its true potential. Tech leaders should plan for and adopt these advances while being aware of the associated risks.
In the face of an ambiguous future, technology executives need to make informed decisions to optimize performance in 2024. Forrester’s TIER can help evaluate and identify the right decisions now to best prepare for the opportunities and risk ahead. If you want to learn more, feel free to schedule an inquiry or guidance session!
This research falls under Forrester’s tech insights and econometric research (TIER).