Our Managing Consultant for IT Contract Megan Johnson, has shared her insights into technology trends that she believes we should watch out for in 2023 that could drive contract demand within the technology sector.
With Technology evolving at a breakneck speed and an uncertain economic outlook from a variety of global challenges, it is safe to say that even after the pandemic years we are still operating in unchartered territory. 2022 saw technology labour shortages, changing expectations from employees in regards to both flexible working and salary inflation. We saw demand for both contractors and consultancies increase to help deliver digital transformation programmes.
So what does 2023 hold? I specialise in contract technology roles across the North of England and I am always being asked about the contract market outlook. I speak to a lot of organisations including large FTSE listed businesses, SMEs, public sector bodies and consultancies so I thought I would outline some of the trends I am watching out for. I feel optimistic that there will be a lot of opportunity for contract growth amidst a challenging financial outlook for many businesses.
In financially turbulent times, businesses are considering how they can drive efficiencies and make cost-effective decisions. Automation will be looked at as a way to streamline processes and reduce operational costs. Could we see a rise in RPA?
Supply chains are under intense pressure with global financial turbulence, disruption from the war in Ukraine and Covid-19 in China. Costs of goods are rising. More companies are looking to add more digital solutions within their supply chain ranging from route optimisation and planning software to wider supply chain management tools.
Despite many big tech firms publicly announcing redundancies in the latter half of 2022, we are still experiencing a technology talent shortage in the North of England and many internal teams are stretched. Whilst often a more expensive option, consultancies and contractors provide value add in terms of skills and expertise and are less risk to the business in uncertain times.
Many organisations may not invest in large scale ERP implementations, particularly with the main players holding the largest market share and could turn to smaller providers, looking instead for flexibility and to reduce cost. Businesses could be likely to turn to smaller software providers that provide solutions for specific problems, especially now integration tools are much more advanced. Either way, we will see increased due-diligence in technology procurement across 2023.
There have been suggestions of a surge in M&A Activity 2023 in the UK as some business owners will look to exit due to capital gains, inflation making financing for businesses less feasible and dividends tax increases amidst inflationary pressures. As some business owners will look to exit this will create opportunities for UK and overseas organisations looking to grow, increasing M&A transactions which will result in digital transformation.
At Nigel Wright, we are experts at finding solutions to complex technology challenges that businesses face and we partner with contractors and consultancies across the UK. If you would like to discuss the contract market, please reach out to: [email protected]
This report provides an analysis of salaries commanded by professionals across the North of England.
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