Continuation of Modernization Efforts

While most organizations are concerned about a recession, most companies (58%) expect their revenues to increase YoY in 2023. Only 10% expect revenues to decrease.

At the same time, half of organizations plan to take precautionary measures to prepare for an economic slowdown in 2023. This includes re-evaluating vendors or contracts, decommissioning unnecessary infrastructure, focusing on new opportunities and hiring slowdowns.

While the need to update infrastructure and an increased priority on IT projects will be the primary drivers of budget increases in 2023, inflation will be a factor in 40% of cases, up from 22% in 2022.

“Despite widespread economic worries going into 2023, there’s reason for B2B technology providers to be optimistic,” said Tsai. “Even as many businesses reduce discretionary spending to weather a likely recession, we anticipate future growth in corporate IT budgets.

“This prioritization of IT spending represents a continuation of modernization efforts kick started during the pandemic.”

Over the last few uncertain years, corporate decision makers have seen first-hand the benefits of IT investments, he added. These “often pay for themselves by improving processes, enhancing resilience, or enhancing workplace productivity.”