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According to the most recent survey by the Gartner, a world leader in enterprise research and advice, security, risk management, application integration strategies, and cloud infrastructure and operations demands are the top three technology priorities for midsize companies in 2022.  

Mike Cisek, Vice President and Analyst at Gartner

"Midsize companies are shifting their investments and even increasing budgets to fund their top technology priorities," said Mike Cisek, vice president and analyst at Gartner. “However, the accelerating rate of change in digital security, application integration, infrastructure and cloud ecosystems complicates the selection of new tools, requiring technology leaders to act quickly to invest and deliver the return expected by enterprises.” 

The Gartner survey was carried out from March to April this year, with the participation of 134 CIOs (Chief Executive Officers) and IT leaders from medium-sized companies around the world, including Brazil. Respondents were asked to identify technology projects that are active and that are associated with top technology priorities. 

 

Inflation could impact budgets for midsize companies in 2023 – As technology leaders at midsize companies approach the 2023 annual budget planning season, they face new challenges, including rising inflation and a potential economic downturn. Due to the size and scale of their operations, these organizations are often the first to feel the economic effects and are more susceptible to negative long-term impacts. 

In Gartner's 2022 survey of CEOs and Business Executives, 86% of midsize company C-Level leaders cite the possibility of a significant rise in inflation, with the majority anticipating that inflationary impacts would be felt within a year. subsequent year to one and a half years (from 12 to 36 months). The most common answer among the CEOs of these companies is that the effect would come with rising prices, followed by the need to make additional efforts to optimize costs. 

“Historically, the answer to moments of economic uncertainty has been to cut costs, instead of defending new investments or additional contributions”, explains the Gartner analyst. "However, in a typical midsize company, IT spend averages 4.7% of total revenue, leaving little room for expense optimization efforts." 

For the Gartner analyst, in times of economic uncertaintys, digital investments must align with business priority to support financial cash flow management strategies. “Midsize companies can handle inflation more efficiently by rationalizing their technology portfolios while investing in solutions that will bring financial or technology productivity benefits to employees and customers.”

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