Executives will need confidence in their ability to execute to respond to market changes in search of growth.
Despite the current economic uncertaintiess, 72% of high-tech leaders in the US, Canada and Western Europe plan to grow their companies' revenue in 2023, according to the latest research from the Gartner, a world leader in business research and advice. Furthermore, nearly half of these leaders believe they can outperform this year's competition. Gartner research was conducted in the second half of 2022, with 195 respondents from the United States, Canada, United Kingdom, France and Germany to understand how economic turmoil poses challenges for the world's key markets and to measure confidence in the ability to implement plans and measures to deal with uncertainties.
"Overcoming the market through times of instability requires an above-average ability to address growth challenges," said Mark McDonald, vice president of Gartner. “The survey results indicate that nearly half of companies (46%) do not have sufficient execution capacity to reliably achieve their goals.”
The survey found that many tech leaders started 2023 prepared for a possible recession. Paradoxically, many of the actions taken were focused on reducing costs, instead of focusing on increasing revenue and market relevance.
Reductions already scheduled by technology service providers
Source: Gartner (March 2023)
Increasing the relevance of technology solutions is the key to growth – Gartner predicts that general IT spending will grow by 2.4% in 2023, with corporate investments in the sector projected to increase by 4.1%. The context of these contributions is changing as buyers increasingly value and invest in business outcomes rather than buying solutions.
“Changing circumstances challenge the relevance of technology resources. Gartner views relevance as the connection between a vendor's solution and how applicable it is to current customer needs. This connection exists at all levels, from C-level (high-level executives) to developers. Without relevance, we see extended sales cycles and higher risk renewals,” says McDonald.
The landscape is dynamic and requires leaders to increase their relevance now and whenever the context changes in the near term, with the aim of positioning solutions for future growth when economic conditions become favorable in the next economy. “It's up to suppliers to identify when the context changes to rebuild messaging and repositioning to meet customers where they are,” says McDonald.
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