How are UK organisations investing in IT given the current conditions?

Every year PAC performs a global survey of CxOs to understand their priorities, challenges, and budget focus regarding their technology investments across the following key areas:

• Cloud Computing
• Business Applications
• Cyber Security
• Artificial Intelligence, BI & Analytics
• Internet-of-Things (IoT)
• Digital Customer Experience

In the UK, 385 organizations participated in the 2023 survey. The interviews were conducted with IT department managers and line-of-business managers who are involved in decisions concerning (local) IT budgets, IT investments, or IT sourcing. The survey sample comprised different-sized companies from all industries.

PAC considers the UK market progressive regarding its use of technology solutions and services and the 2023 results reaffirm this. Organisation’s spanning the different sectors within the UK are not as hesitant towards adopting new technology as in some other countries. However, that does not mean the UK has a high-risk tolerance or that every industry adopts technologies at the same pace and scale. Typically, the industries that have evolved the fastest in recent years have been the ones where the demands for external digital services have been the most prevalent.

However, despite this, the UK is experiencing significant economic challenges that directly and indirectly impact organisations’ operating costs and project focus. This is why PAC performs our CxO survey each year to understand better UK organisation’s headwinds and investment focus regarding their technology adoption dynamics. Whilst the UK is experiencing a testing economic period, those surveyed have still indicated an intention to invest in a range of technologies. Understandably, the focus in any new or further investment in technology is predicated on reducing costs or increasing efficiency (which can often indirectly beneficially impact costs).

The UK survey results have shown that organisations are still increasing their IT spending in 2023. PAC considers that modest increases in IT-related budgets reflect the need, for example, to invest in technologies like BPO, AI, and cyber security to provide opportunities for deeper cost savings once delivered, so initial investments are needed to reach the deeper savings goal. The post-pandemic challenge of a shortage of skills across a wide range of technology capabilities ranging from cyber security to digital customer experience is still evident from responses across the survey results, and PAC does not expect this to change for the rest of the year, which is where service providers can deliver a clear benefit. Overall, the 2023 UK CxO survey results indicate that organisations are continuing to invest in key technologies but are understandably wary of risks related to the current economic conditions being experienced.

PAC often hears from IT solutions and services companies how understanding the voice of their customer is essential to strategy development and go-to-market engagement. The results of this PAC European CxO provide that level of insight in many granular dimensions. The results of this survey are also valuable for CxOs to compare how their IT investment strategy relates to other UK businesses. If you would like to learn more about the survey results, please contact a member of the PAC team to arrange a conversation.