Trend 1 – Business leaders face increasing regulations with continued pressure to innovate.
With recessionary economies, we often see an increased scrutiny on process controls and higher regulatory enforcement from governments. In 2023, expect to face many challenges related to:
- Transparency and reliability of new financial platforms, like crypto currencies,
- Visibility into supply chain systems that reduce risk in this globally connected world economy, and
- Oversight of ESG (environment, social, and governance) policies driven by both governments and investors.
Pressures from regulatory agencies, government bodies, and investors on businesses to embrace and implement environmental, social and governance (ESG) remain high in 2023. Financial services and insurance (FSI) organisations are especially facing an increasingly complex regulatory landscape and more scrutiny over the next three years.
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To stay compliant and competitive amid new regulatory pressures, FSI organisations and other businesses operating in highly regulated sectors must ensure end-to-end process control with ESG monitoring and reporting. Powerful technology and solutions like data fabric can help unify data across systems and build enterprise applications. Integrated data leads to better insights, enabling organisations to simplify and accelerate all their critical processes, making compliance monitoring and reporting easier and faster.
However, 81% of European IT leaders in financial services and 73% in the insurance sector in a recent survey, say they are concerned that the transition from the pandemic to economic downturn will see businesses freeze IT budgets and headcounts. This leads to mounting IT backlogs, slowing enterprise digitisation and modernisation efforts. With that, FSI organisations must ensure they are protecting and strengthening their ability to adapt rapidly to change by leveraging a technological edge for competitive advantage. The goal: to avoid innovation stagnation, fall behind competitors, and stay compliant.”
Trend 2 – IT leaders must do more with less with recession impact
The past two years have made it abundantly clear that businesses must continue innovating to navigate times of uncertainty and economic flux. Only those with digital agility will be able to compete and stay relevant in today’s digital marketplace. That is why the demand for automation and low-code development – which makes it so much faster to build, modify, and execute enterprise applications – surged during the pandemic, as organisations scrambled for solutions to help them remain agile.
As a result of being under pressure to cut costs in response to the turbulent economic climate expected in 2023, organisations’ ability to drive business agility could be short-lived. Eight in ten (79%) of UK developers and software engineers say their organisation is already shifting focus away from innovation projects towards cost-cutting initiatives, according to a recent study. So unless they quickly change course, IT innovation is set to stagnate through the economic downturn, impacting organisations’ ability to grow and compete well beyond the next one to two years.
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By GlobalDataWith demand for digital innovation continuing at a record pace and access to resources becoming more competitive, organisations must streamline their IT stack to focus on time to value, maximise return on investment, and stay competitive in an increasingly recessionary global economy. Process automation on a low-code platform is one solution other organisations have used to design, orchestrate, and optimise critical processes. By leveraging the right technology, business leaders can increase productivity, deliver more profits and savings, thus putting them in a better position to navigate challenges stemming from the looming recession – from supply chain issues and inflation to qualified labour shortages.”
Trend 3 – Technology dependency and IT skills gap remains a challenge for organisations
Last year, IDC predicted the global shortage of full-time developers will increase to a staggering 4 million in 2025. But this trend will significantly accelerate in the coming year due to the cost-of-living crisis, which will inevitably make formal education and paid certification programmes less accessible for many. The IT skills gap will introduce barriers for new talent to enter an industry already experiencing significant skills shortages, with organisations across sectors struggling to find the technology talent they need to innovate and keep a competitive edge.
Given it is likely to be critical in the future of business innovation, low-code development provides a lucrative career path for individuals with no coding background. In addition, it allows organisations to build powerful business applications efficiently and at speed, significantly reducing the need to write code.
As a result, low-code can unlock opportunities for businesses to look for talent with diverse backgrounds outside and within the organisation. According to a recent survey, 75% of UK developers and software engineers saying they are concerned about their businesses freezing IT budgets and headcount.
Exploring opportunities to upskill and reskill existing talent would be particularly important for organisations during the recession when budgets do not allow new hires. Low-code and process automation platforms lead the way in this approach, empowering a broader set of users to participate in digital innovation.
