Powering through a Downturn.
Emerging stronger and better from a slump takes grit, hustle, and bolder partnerships in equal measure.
Key trends to look out for
Stay ahead of the game in 2023 with expert insights on the key trends shaping the future. From the rise of digital technologies to shifting consumer behaviors, these trends will drive the industry.
automation budgets will shift from transformation to resilience.
of the firms will take a cloud-native-first approach.
of CX teams will lack critical design, data, and journey skills.
of tech execs will tackle talent challenges with alternative partners.
Source: Predictions 2023, Fortune Favors The Bold And Focused, Forrester Research Inc.
Shifting Automation Budgets
In 2023, the push for automation will slow down slightly as companies adopt a more cautious approach. Economic uncertainty will lead enterprises to prioritize resilience and efficiency over transformative projects. We expect businesses to focus on known issues and risks, such as shoring up supply chain gaps or investing in physical automation to deal with labor shortages. Those who can adapt to the new realities of 2023 while continuing to invest in automation will gain a significant competitive advantage.
Higher Reliance on Cloud-Native
Many organizations have adopted containerized applications, which now make up 50% of their infrastructure. Kubernetes (K8s) is being used to manage these containers at scale, making virtual machine-centered workloads obsolete. In 2023, organizations will increase their investment in K8s as a distributed computing backbone for current and new workloads that can be run more efficiently in K8s environments. These workloads will cover various technologies such as AI/ML, data management, IoT, 5G, edge computing, and blockchain. Additionally, K8s will drive application modernization through DevOps automation, low-code capabilities, and site reliability engineering. Cloud leaders should prioritize the transition to containers and Kubernetes.
Skill Gap Realities will Bite
Many customer experience (CX) teams lack critical skills such as design thinking, inclusive design, survey design, journey mapping, data literacy, and storytelling, leaving them limited to basic problem-solving and unable to drive innovation. This skills shortage will decrease CX differentiation in most industries, with the gap between the best and worst CX shrinking as some below-average brands improve while others decline. Companies should focus on customer-centric innovation and unique CX strategies rather than following trends to stand out. Smaller CX teams can help employees develop essential skills and showcase the benefits of a small group.
Hybrid Work is Here to Stay
More than two-thirds (68%) of employees with the option to work remotely want to continue to do so more often than before the pandemic. However, some companies, such as Goldman Sachs, require employees to return to the office. In 2023, companies that do not collaborate with employees in creating hybrid work policies will face challenges. Adherence to in-office policies is already weak, and the risk of losing employees is high. As economic uncertainty increases, 40% of companies with hybrid work policies may reduce remote work and require employees to come into the office more often. This could lead to negative headlines and productivity loss.
Gig Economy will Thrive
A shortage of tech talent needed to transform businesses, implement hybrid cloud, and create new applications that drive growth will be a reality. At any given time, an average of 200,000 open tech jobs remain unfilled due to a lack of qualified candidates. In 2023, one in three tech leaders will look beyond their traditional service providers to find talent more broadly to improve their capacity and skills. About 31% of service decision-makers will increase their use of freelance talent marketplaces to support a more flexible talent strategy. They will also work with computer science schools and use the resources of providers like Infosys Springboard and Salesforce Trailhead to upskill teams and create new talent pipelines.
Trust in Consumer Tech Will be Tested
A majority of adults around the world, trust consumer technology companies. However, while these companies gained unprecedented popularity during the pandemic, this trend is reversing. In May 2022, the software stock market experienced a significant decline in value, with many companies reporting revenue drops. As the pandemic ends, reduced tech dependency will combine with trust and privacy issues, such as the inability to protect user data and ineffective ethical measures in digital environments to erode consumer trust gradually. By the year’s end, consumer trust in tech companies will decrease by about 15%, impacting the entire value chain negatively.
Fortune Favors the Bold. Be Bold.
2023 is a year of change. Of uncertainty. And eventual victory. Sticking to a long-term plan while adapting to uncertainty will be crucial for success in 2023, prioritizing enterprise goals and strengths and setting aside non-essential distractions. CriticalRiver’s bold and strategic approach to driving growth despite a downturn can be a turning point for you.
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