Forrester’s 2023 European Predictions: Citizens’ Trust In Governments Will Plummet Due To Steep Inflation Rates And Energy Crisis
LONDON, 25 October, 2022 — According to Forrester’s (Nasdaq: FORR) 2023 European predictions, released today, European governments will struggle to support their citizens through a winter of soaring energy costs — and some will shift that responsibility onto businesses. As a result, consumers’ trust in governments across Europe will drop significantly. By the end of 2023, only one in five European citizens will still trust their government.
In addition, Forrester predicts that rising energy costs, plus financial incentives from governments and utilities companies to reduce energy consumption and adopt a more sustainable lifestyle, will lead to European consumers going greener. In Europe, the number of “active green” consumers is expected to increase by 50%.
Forrester’s predictions analyse the dynamics and trends in different topics and industries, including technology and innovation, customer experience (CX), changing consumer behaviour, and the future of work. These insights help business and technology leaders see around the corner and gain a competitive edge to thrive in the year ahead.
Highlights of Forrester’s 2023 European Predictions report include:
- One-third of European organisations will have to offer anywhere work to attract and retain talent. Anywhere work is here to stay. Two-thirds of European online adults expect to be allowed to work from home more often, and employers who try to force them back into offices can expect protests and attrition. Additionally, with rising energy prices, employers should seize the opportunity for reducing the heating and cooling costs of office spaces that result from anywhere-work policies.
- One in three tech execs will tackle talent challenges. The technology talent needed to transform organisations, amp up the hybrid cloud, and build new applications that drive growth and differentiation remains in short supply. To improve capacity and skills in 2023, a third of tech executives will go beyond their traditional tech service provider partners to source talent more broadly.
- One in five CX programmes will disappear altogether.The estimated 80% of companies for which great CX is not part of their brand identity will finally demand proof that spending on CX improvements is necessary. In contrast, CX leaders who embrace CX will join the C-suite, earning larger budgets for personnel, technology, and project work.
- Tech redundancies will make traditionally “unattractive” industries desirable again. Over the last decade, sky-high valuations of tech companies and rivers of VC funding have starved companies in more conventional industries of digital talent. As tech giants announce hiring freezes and European startups reduce their workforces, however, financial services and utilities firms have a new appeal as they start to offer attractive salaries and job stability.
- Fifteen percent of banks will fail to tackle their technical debt and become uncompetitive. Before the war in Ukraine, more than 70% of business and technology banking professionals reported that their organisation would maintain or increase investment in banking, lending, and digital engagement platforms — these plans are now getting derailed. In 2023, 15% of banks will move tech budgets away from transforming core systems toward digital engagement solutions.
“Over the next year, economic and geopolitical turmoil will continue to sow fear and disruption for European businesses,” said Laura Koetzle, VP and group research director at Forrester. “As trust in governments declines, European companies have an opportunity to fill that trust vacuum. To do this, they must assess which trust levers matter the most to customers, identify gaps, and build a strategy that helps them win and safeguard customer trust. Forrester’s 2023 predictions will help leaders make the bold, smart, and tactical decisions needed to strengthen this trust and drive investment in long-term growth.”
- Download Forrester’s 2023 European Predictions guide.
- Explore the European Predictions hub for blogs, webinars, and resources.
If interested in talking to an analyst to discuss the 2023 Predictions in more detail, please reach out to email@example.com.