Over the past few months, inflation and a worrisome economic outlook have impacted everything from grocery bills to gas prices. This combination of pressures also affects the sectors in which business leaders choose to invest – and those in which they plan to cut spending.
In June, technology analyst Gartner surveyed 128 CFOs and business leaders to find out which investments they plan to cut first in the face of rising inflation, talent shortages and supply constraints.
Of the 128 CEOs and CFOs surveyed, 41% said mergers and acquisitions (M&A) were the investments most likely to be scrapped first. Investments to improve sustainability and reduce environmental impact come second with 39% of votes.
Ecology on the sidelines, but not technology
According to Randeep Rathindran, vice president of research at Gartner, the choice to reduce mergers and acquisitions may be linked to rising interest rates which significantly increase the cost of financing these operations. However, the latter believes that the cuts in the area of sustainability are more surprising, as companies have made this area a major strategic priority in 2022. Growing consumer and employee concerns about the environment have forced companies to take these goals more seriously.
But investments in technology, workforce and talent development are not the areas in which CEOs or CFOs plan to make cuts. In fact, only 23% of respondents say technology is one of their top two choices for reducing spending, and 46% say spending on workforce and talent development is their bottom line. to be reduced.
Technology investments are unlikely to decline due to their positive impact on efficiency. According to Randeep Rathindran, these investments are a necessity. “Implementing digital in a way that drives worker, asset and working capital productivity will be a necessity going forward,” he said in a statement.
As inflation continues and CEOs and CFOs reconsider their priorities, it looks like investments in product innovation and technology are here to stay, at least for now.
Source: ZDNet.com