By Umme Sutarwala - July 04, 2022 4 Mins Read
Inflation across the globe is on the rise. CIOs are planning strategies to deal with it by rethinking IT portfolios, reprioritizing IT investment, and improving business efficiency.
Enterprises are suffering the effects of inflation as prices for goods, services, and equipment rise. Additionally, the talent competition is intensifying due to growing consumer costs and their effect on wage inflation.
Tech skill is still in great demand. More than 443,000 corporate job posts for IT roles were found in the US in April, according to Tech Jobs Report by CompTIA, a nonprofit organization for the IT sector, increasing the year’s total to 1.6 million. Over the same period in 2021, there has been a 40% growth in US IT jobs.
These numbers, which are reflected elsewhere in the worldwide IT skills shortage and general inflation, put CIOs under pressure to raise pay. The three major issues are wages, personnel, and the likelihood that CIOs will lose the fight for talent.
Therefore, even if CIOs can increase their salaries, they will still experience a hiring shortage. Additionally, they will pay extra for additional staff.
Even while CIOs are not often renowned for being frivolous spenders, inflation has them watching their money even more closely. Firms are shifting from believing expenses are steady or dropping to anticipating increasing costs.
This task has various difficulties. The majority of IT departments have efficient procurement processes and reliable CapEx expenditure models. Still, many of the tried-and-true methods that worked well when IT had more capital expenses in the past won’t work as well today with subscription services, SaaS, and usage-based models.
CIOs and their C-suite colleagues are beginning to reassess initiatives to make sure they still make logical sense and whether they are still accurately prioritized in light of all the ways inflation, supply chain disruptions, the ongoing pandemic, and the possibility of recession are impacting IT and business in general.
Also Read: IT Leaders on Transitioning from CIO to Consultant
It all comes down to being smart about where funds are spent and influencing the intended outcomes. That is not novel math, but experts agree that the numbers they are using to determine returns and guide decisions have altered as a result of pressures from other factors such as inflation and changing business requirements.
Demand for digital business initiatives is higher than it has ever been, and organizations are readjusting their project and service portfolio by being more selective about the initiatives they launch. Enterprises actively avoid overstretching their personnel and concentrate on strategically important activities. They also know the significance to safeguard their team members’ health and wellbeing while facilitating them to meet the demands of their organization
Companies are transitioning personnel from remote work to hybrid workplaces, which is fueling yet another round of equipment purchases (remote work increased demand for laptops and other gear in 2020 and 2021).
Some CIOs thus want equipment straight quickly. However, consumers should be prepared to pay a premium if they want to get such products as soon as possible. These surcharges are not only the result of inflation; a number of other causes, including supply chain problems, demand outstripping supply, and COVID-related plant shutdowns, are also at work.
However, CIOs who are prepared to pay extra can obtain their goods now because doing so will move them to the front of the queue. Some CIOs will accept a later delivery rather than paying the premium. Companies will benefit from an increase in productivity and employee experience.
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Umme Sutarwala is a Global News Correspondent with OnDot Media. She is a media graduate with 2+ years of experience in content creation and management. Previously, she has worked with MNCs in the E-commerce and Finance domain
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