By Jess Jones
Nearly four out of 10 businesses will escalate their investment in technology as they seek to cut costs.
The consultancy giant, which is hosting a session at the World Economic Forum in Davos this week, said 39 per cent of the businesses it spoke to for its report were intending to use technology to drive cost savings and business transformation over the next 12 to 18 months.
A similar number are opting to maintain their current level of spending on technology.
Aiman Ezzat, chief executive of Capgemini said businesses should, “seize the opportunity that technology offers, not only to make their business more efficient, sustainable, and resilient, but more importantly to enable long-term growth opportunities”.
Capgmini said executives were looking to leverage the power of cloud, data and analytics to streamline operations and accelerate decision-making and almost half of executives were planning to increase their cybersecurity expenditure.
Despite the increase in tech investment, the report found that, overall, organisations are approaching investment more tentatively due to the current economic inflationary pressures and high interest rates.
Supply chain disruption is also a large concern for almost 90 per cent of businesses, with 43 per cent planning to increase investment in ‘technologies and diversification’ during the next year and beyond.
This includes improving agility, transparency, and visibility while diversifying suppliers and production locations.
Businesses are also worried about the energy crisis and the climbing costs of raw materials.
The Capgemini Research Institute surveyed 2,000 respondents from organisations with more than £800m in annual revenue, across 15 countries in its 2023 report titled, ‘Advancing through headwinds: where are organisations investing?’
Capgemini is hosting an affiliate session at Davos titled ‘Accelerating the Transition to Net Zero in Industry’ on Tuesday morning.
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