From international conflict, supply chain woes, rising inflation, slow H2 revenue growth, and a slew of Q4 layoffs, 2022 has been another challenging year for the tech industry (and the world). Now, as we prepare to ring in 2023, IT pros are hoping the next several months will usher in more stability, innovation, and opportunity. But what do the experts say?
After studying trends, analyzing data, and dissecting projections from the industry’s leading experts, we’ve discovered the forecast for 2023 is a mixed bag. Fortunately, there are plenty of reasons to feel hopeful. Today, we’re sharing a few predictions for what will impact IT the most in 2023.
The Tech Talent Shortage Will Continue
Despite recent layoffs releasing thousands of highly qualified tech pros into the job market, we’re still facing a significant tech skills gap that will continue to create challenges in the year ahead. Additionally, despite the looming recession, it's still an employees' market. And while this is great news for IT job seekers and employees pursuing higher salaries, companies that fail to attract and retain the right talent will struggle to adopt emerging tech and keep pace with the competition.
In 2023, business leaders should strive to keep existing employees satisfied and help them advance their skillset through internal training programs. Given that it costs an average of $105,000 to replace one employee, according to data from Alight, it’s much cheaper to invest in an employee’s growth than start from scratch. By working to retain tech talent, companies can gain an edge over their competitors — especially when it comes to innovation.
Despite Economic Uncertainty, IT Budgets Will Grow
After several months of stagnant revenue growth, plus less-than-stellar projections from leading economists, many business leaders are looking for ways to slow spending. But, thanks to increasing reliance on complex tech stacks, IT budgets likely aren’t in danger. In fact, according to a report from Spiceworks, more than half of organizations will increase IT budgets in 2023. That includes managed services, which the report says will account for a whopping 17% of IT budgets in the year ahead.
This is great news for MSPs — especially those specializing in managing business apps and security, which are projected to be the two biggest spending categories within MSP budgets. To help prepare for the influx of new business and ensure they can keep up with growing demand, MSP leaders should consider upgrading their help desk software as soon as possible.
Cybercrime Will Reach New Record-Highs
2022 was a busy year for security teams. Over the past few months, security pros have been combatting a surge in ransomware attacks, and a deluge of threats targeting MSPs (and the small to mid-size business they serve). No company was too small to be targeted in 2022, and no industry was safe. Unfortunately, all signs point to 2023 becoming another banner year for cybercriminals. Businesses are still struggling to respond to the rise in malware, and continuing geopolitical tensions mean we’re unlikely to see a drop in state-sponsored attacks. Plus, social engineering tactics, like executive and vendor impersonation, are becoming more sophisticated and harder to identify.
The best way for companies to strengthen their defenses is to ensure all employees are well-educated on potential threats, how to spot them, and the steps they should take in the event of a breach. Additionally, MSPs should remain vigilant of ransomware attacks that exploit remote monitoring and management (RMM) software.
Interest in Metaverse and Spatial
Computing Tech Will Grow
Love it or hate it, the metaverse is gaining steam. And while we’re still at least a few years from significant adoption, 2022 gave us a clearer idea of how businesses might apply this emerging tech. For example, the metaverse, along with AR, VR, and spatial computing, could help organizations improve their virtual workspaces and better support employee engagement across remote and hybrid teams. It could also enhance live events and allow for more immersive virtual conferences and expos. While we don’t expect the metaverse to take over in 2023, we do expect to see interest grow. We also expect to see more tech companies spinning up their own metaverse tech in the months and years ahead.
Companies Will Continue Investing in Automation
Since the pandemic began, employers grappled with rising rates of employee burnout and a talent shortage that forced already overworked employees to take on even more. It’s unsustainable, and it’s taking a toll on everyone involved. Fortunately, automation has helped alleviate some of the burden. And while economic challenges may slow innovation in automation, wise business leaders will continue investing in automation software.
“Economic uncertainty is driving a more rational approach that taps the breaks on transformation to focus on core business drivers such as resilience and efficiency,” says Craig Le Clair, Vice President, Principal Analyst at Forrester, in a recent article. “Efforts will pay off for those with the mettle to adjust to 2023 realities but also double down on automation to reap competitive advantage.”
W3 Will Take a Leap Forward
The next evolution of the world wide web is still under construction, but aspects of web 3.0 are taking shape and earning a lot more traction — like, for example, decentralized social networking and 3D user experiences. We expect to see much more forward momentum in these w3 trends and more in-depth discussion around government regulation, accessibility, and how w3 tech can reduce its impact on the climate.
Additionally, while tech thought leaders have spent the past few years hypothesizing about how healthcare, finance, education, and other large industries might leverage blockchain technology, we could finally see some of these concepts come to life in 2023 and the years that follow. Of course, without a crystal ball, it’s impossible to know for sure what’s in store over the next twelve months. But keeping your finger on the pulse of these trends will help ensure you have the intel you need to stay ahead of the competition and, with any luck, make 2023 your most successful year yet.