IT leaders struggle with business, technological, and staff disruption issues. As per a recent Forrester report, 2020 will be a year of massive people management and cost control challenges for CIOs. As per expert predictions, 2020 will bring in a new era where the increased emphasis will lie on IT to generate real-world value.

The typical cost reduction strategy is aimed to eliminate applications and cage staff into using standard and legacy tools. This is expected to change in 2020 as companies seek to modernize aging, expensive ERM and CRM systems, looking to infrastructure automation and cloud to save cost or at invest in OpEx. This will help them to modernize and automate low-level tasks in IT. The potential cost savings are expected to shift from application licensing and unnecessary app maintenance expenses to repetitive and redundant task automation.

As per the “On the Precipice of Far-Reaching Change” report- the uncertainties in 2020 will frame CIOs’ transformation agendas. CIOs will address cost-cutting and efficiency issues while having the opportunity to step forward as business leaders, ecosystem-building skills, showcasing their tech-driven innovation, and people management abilities.

As change catalysts, in 2020, CIOs should work with the C-suite to integrate business and technology strategies into a single unified approach. This requires a continuous and innovative method where technology and business functions partner to create new sources of value, including agility, data, speed, transparency, and enriched digital experiences.

Next year enterprises need to recognize technology’s potential to be a strategic force, driving innovation, and competitive advantage. To future-proof demand strategies presented by economic cycles as well as digital disruption, CIOs should go into 2020 with a precise technology spend optimization strategy that aligns with business goals and broader objectives. Leveraging business sponsorship will empower them to hire fresh teams with advanced digital technology skills.

Forward-looking organizations are much more inclined to invest intelligently in technology rather than seeking to cut costs in this area. It is hard to imagine organizations seeking growth but emphasizing on cost-cutting and efficiencies in 2020. Such an approach could be shortsighted, naive, and at their own peril.

2020 is a pivotal year in terms of redefining organizational culture, mission, and values. Organizations across industries in the private and public sectors will need to determine the role that information technology plays in the future. Based on this, firms need to strategize to invest in technology as a competitive force.

When viewed from an overall global economic perspective, becoming technologically competitive is essential for a firm’s future readiness. Organizations need to plot a successful path forward in this area to prosper. Firms that avoid such critical investment decisions, or simply embrace cost-cutting and efficiency, will pay a heavy price for such decisions. The damages could include the substantial cost of missing golden tech-evolution opportunities in this highly technology-driven global economic environment.