UK firms which have been forced to tighten their belts over the past two years due to the pandemic are set to make huge investments in digital transformation, splashing the cash on new tools, new tech and new staff.
Back in 2019 in the pre-Covid world, market intelligence group IDC predicted that spending on digital transformation technologies and services would soar to $7.4 trillion (£5.7tn) by 2022.
And, while many UK firms saw digital transformation accelerate due to Covid-19, a new study of UK bosses by digital agency Studio Graphene, reveals nearly half (44%) were prevented from upgrading their technology, including even a website or app, over the past 12 months due to cost constraints.
Past experiences with digital transformation projects have also made an impact on businesses’ willingness to implement new solutions. Half (49%) say a poor experience with new technology or vendors discouraged their business from investing in other projects.
Even so, the majority are now looking to funnel investment into new technology projects in 2022. Half envisage trialling new technologies to be a top strategic priority for their business in 2022, while similar numbers (51%) say their firm intends to launch new digital projects, tools or initiatives next year.
Many are also upping their recruitment efforts to support these plans, with 46% of all businesses saying they are looking to hire new tech staff.
When quizzed about the measure of success for digital transformation projects within their company, only 51% say that financial returns are considered the most important benchmark. When looking at company size, a clear return on investment (ROI) was more important to firms with up to 500 employees (73%), compared to those with up to 49 employees (44%).
Studio Graphene founder and director Ritam Gandhi said: “It is a shame that so many UK businesses have been stung by poor experiences with new technologies, or vendors that do not live up to expectations. Clearly, it is acting as a barrier preventing many companies from embracing digital transformation.
“That said, trial and error is the name of the game when it comes to innovation, and it is inspiring to see so many UK business leaders now refocussing their efforts on digital transformation for 2022. The new digital-first world will not wait for companies that do not ensure their technology is in keeping with customers’ ever-changing expectations.
“It’s telling that almost half of UK companies are seeking to hire more IT professionals – unfortunately, given the digital skills shortage, this might prove an issue for many. Meanwhile, the challenge is to find vendors that are transparent in their pricing and have a strong track record in the relevant sector or field of technology. I would encourage businesses to do their due diligence and find partners that can take the stress out of digital transformation, without an eye watering price tag.”
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