As per research conducted by Gartner, Chief Information Officers or CIOs are expected to witness a pay hike in 2023, accompanied by a projected 3.6% increase in IT expenditure. It is anticipated that worldwide investment in the IT sector will reach $4.4 trillion in 2023, indicating a 4% surge from the present year. This increment is deemed the most substantial annual growth rate encountered by a majority of CIOs over the preceding decade.
Despite facing arduous conditions at the outset of 2023, CIOs are persisting in their investment in the IT sector, comprehending the significance of remaining adaptive and responsive to change. According to John-David Lovelock, Vice President of Research at Gartner, as a result, analytics, cloud computing, customer experience optimization and security will receive prominence as key areas for both spending and investment.
The majority of CIOs are redirecting their attention towards investing in technology to enhance the agility, resilience and adaptability of their enterprises, anticipating a possible period of upheaval similar to that witnessed in the last two years.
In accordance with Gartner’s projections, CIOs are expected to prioritize digital transformation technologies such as artificial intelligence, secure access service edge (SASE) or Zero Trust, and edge computing by 2023. Although this trend has been emerging over a significant duration of time, the COVID-19 pandemic has accelerated the implementation of cloud services by a multitude of CIOs.
The widespread acceptance of personal computers, tablets, cell phones, displays, WiFi routers, headphones and other instruments of productivity is a significant advancement in recent years. Nonetheless, the necessity for prompt installation of remote working solutions during the initial phase of the pandemic emphasized a significant shortcoming in many Business Continuity and Disaster Recovery (BC/DR) strategies.
The abrupt demand for mobile devices and internet connectivity for every employee and external contractor caught numerous Chief Information Officers unawares, propelling them towards hastily acquiring appropriate equipment from local vendors such as Best Buy.
At the onset of the pandemic, there was a surge in the procurement of VPN licenses, which are presently in use. It is approximated that nearly 60% of corporations are shifting away from substantial capital expenditure, aiming towards operational expenditure, to cater to remote working requirements.
Empowering a Diverse Multifaceted Workforce
Several Chief Information Officers (CIOs) are devoting additional resources towards tools that can facilitate business continuity during periods of significant transformation. These tools can also serve the purpose of implementing hybrid work arrangements, allowing employees to carry out certain work responsibilities from home.
As per the InfoTech CIO Priorities Report, it is predicted that by 2023, only 15% of corporations will have their entire workforce physically present in the office on a full-time basis. Instead, 10% of firms will opt for a fully remote working model, and a majority of companies will deal with a hybrid workforce.
According to the InfoTech survey, a significant 97% of participants express eagerness to invest in technology to improve staff communication by 2023. Features such as document collaboration, web conferencing and instant messaging are evidently high on the priority list of Chief Information Officers.
The Comeback of Personal Computers
Ziff Davis-Spiceworks analysis indicates that laptops are poised to gain popularity among office workers and become equally prevalent as desktop PCs by 2023. It is anticipated that almost 40% of office workers will be deploying portable computers while the remaining 40% will be using stationary desktop PCs.
The report proposes that “on-premises and cloud infrastructures will coexist and display greater interoperability”, providing organizations with enhanced mobility and adaptability.
Gear-as-a-Service is a developing sector that charges customers a subscription fee instead of requiring them to purchase or lease hardware. Similar to other ‘as a service’ models, Hardware-as-a-Service empowers Chief Information Officers (CIOs) with improved budget management.
As per a recent Lenovo study, about 63% of 525 Chief Information Officers (CIOs) worldwide have affirmed that Device-as-a-Service (DaaS) is emerging as a fundamental aspect of their IT infrastructure. Comparatively distinct from traditional leasing, DaaS solutions frequently integrate software, additional services and support as a part of the hardware package.
The ongoing migration towards as-a-service solutions is significantly influencing IT budgets, leading to an increased inclination towards Operational Expenditure (OpEx) compared to Capital Expenditure (CapEx). Although CapEx remains prevalent in acquiring new hardware, Chief Information Officers are progressively turning to the as-a-service model as opposed to owning and maintaining on-premises infrastructure.
Safeguarding Confidential Information is a Key Priority
The emphasis on security measures is mounting as a growing number of organisations struggle with areas such as compliance, network security, and business continuity. Consequently, there is an escalating necessity for managed services, with patching being a crucial aspect. Despite the prevalence of capital expenditure, conventional rebuilding remains the preferred approach for disaster recovery and business continuity.
Organisations are heavily investing in Zero Trust network access (or SASE) solutions to improve the security of remote employees’ home networks. These solutions incorporate technologies such as cloud access security brokers, firewall as a service (FWaaS), and data loss protection (DLP) into a unified solution.
2023 is expected to be a critical year for CIOs, as stated by Lovelock’s forecasts. CIOs will have the opportunity to concentrate on long-term objectives, although they may need to rely on consultancies and managed service providers for implementing digital strategies due to a lack of internal expertise, escalating salaries, and high competition for skilled personnel.