The majority of C-suite executives expect a recession to hit by 2023. Indeed, according to a survey conducted by the IDC consulting firm among around 900 of these managers, 59% expect there to be a recession next year. That’s why managers in countries around the world have plans to invest more money in technology for their company. It is so, relying on technology, how they hope to meet their forecasts.
Of those 59% who expect a recession next year, nearly 30% say we are already experiencing a recession, and another 26% expect one to be underway by the end of this year. By geographical distribution, 75% of EMEA managers are convinced that there will be a recession as early as the end of 2022. The rest don’t think it will start before the start of 2023. But almost half of managers in North America believe there is already a recession, and 44% of those in Asia say the recession will arrive throughout this year.
Nearly two-thirds of those surveyed believe the recession will last at least a year. A significant majority of EMEA managers surveyed think so, but in North America the situation seems different: 60% of managers in the region believe that the recession will last two or three quarters.
To prepare for the recession, again nearly two-thirds of EMEA managers have plans to increase their IT budgets and programs to prepare for the recession. But this is only being done by a quarter of managers in Asia and North America.
This increase in IT budgets is undoubtedly good news for workers in technology sectors. In fact, this sector is not experiencing the same brakes that other sectors are experiencing before a recession. There continues to be a very high demand for experienced software developers and IT engineers. All thanks to the fact that many companies want to strengthen and increase their digital infrastructure.
This increase in budgets for technology in the future is apparently due to the success that companies with digital business models had in 2020 when the pandemic hit the global economy.
According to Teodora Siman, Research Lead, IDC Senior Executives Tech Agenda«In the current macroeconomic environment, there are signs of slowing growth and sentiment among managers expressing concern about a potential recession. No one can predict the future with certainty, but we can all learn from the past. As recently as 2020 we saw companies that invested in technology and digital business models emerge from the pandemic ahead of their competitors. Investing in technology before an economic downturn can help uncover process inefficiencies and increase business agility, preparing an organization to manage new-to-market risks.«.
