The Balancing Tech Investments and Cost Cutting whitepaper, commissioned by Foxit Software and conducted by the Enterprise Strategy Group (ESG), examines how organizations navigate macroeconomic challenges in 2023. With high inflation, rising interest rates, and looming recession fears, businesses focus on cutting costs while attempting to maintain operational efficiency and competitiveness.
One significant finding is that 83% of respondents have scaled back spending and growth plans due to rising interest rates. While cost containment measures are widespread, companies are carefully considering how to balance reducing technology investments without negatively impacting innovation, productivity, or future growth.
The survey reveals that nearly two-thirds (62%) of respondents preferred reducing spending on incumbent technologies rather than cutting headcount. However, headcount reductions are still expected, with 38% of respondents predicting layoffs within their organizations, often targeting remote workers or underperformers. The average projected impact for companies facing staff reductions would be a 40% workforce reduction.
Interestingly, 74% of respondents expressed openness to adopting cost-effective productivity software alternatives, recognizing the inefficiencies in current solutions. Many noted that legacy productivity software vendors have been slow to innovate while maintaining monopolistic pricing, driving interest in new, cost-effective technologies.
While cost-cutting is necessary, business leaders must tread carefully to avoid adverse consequences, such as diminished employee engagement, lost innovation, or missed financial goals. The whitepaper emphasizes the importance of a strategic approach that focuses on identifying cost-saving opportunities in underutilized tools while ensuring the organization is equipped to remain competitive.
The Balancing Tech Investments and Cost Cutting whitepaper provides valuable insights for organizations looking to navigate economic uncertainties while continuing to drive innovation and operational efficiency.
Download the full whitepaper to learn more about how businesses balance cutting costs and investing in technology to stay competitive in challenging economic times.