The technology market grew during the early pandemic years as business accelerated their digital transformation efforts. But the market has hit several speed bumps over the previous two years. High inflation, elevated interest rates, and considerable macroeconomic and global unpredictabilities added to a softening of customer costs, lower product demand, falling market capitalizations, and workforce reductions in 2022. Headwinds continued into 2023, with small weakening of international tech costs and rising layoffs. But there are now glimmers of hope that a tech resurgence might impend: Economists have lowered their evaluations of economic downturn danger, and experts are optimistic that the tech sector could return to modest development in 2024.
As the innovation market faced heightened worldwide challenges over the previous few years, Deloitte prompted tech leaders to assess where production happens, to improve the openness and resiliency of their supply chains, and to prepare proactively for future systemic risks. We recommended leaders use innovation to improve business procedures, rely more on intelligent automation, reduce tech financial obligation by carrying out leading practices for software development, and modernize legacy by moving to cloud resources and anything-as-a-software (XaaS) services. We also advised that tech companies consider how to extend their reach into other industries, utilizing digital advancements to stimulate transformation. Finally, we recommended leaders to develop talent in crucial locations such as artificial intelligence (AI), robotic process automation (RPA), and cybersecurity.
With worldwide and financial unpredictabilities continuing into 2024, these recommendations remain important. But it's most likely time to refocus on innovation and growth too.
Our 2024 information technology market outlook explores some of the patterns and strategies we anticipate tech leaders to focus on this year-and beyond:
- Angling for a return, with aid from cloud, AI, and cybersecurity. Enterprise costs on software and IT services-particularly synthetic intelligence, cloud computing, and cybersecurity information technology-is anticipated to allow the most development in the tech market over the coming year.
- Striking a balance in between globalization and self-reliance. The around the world, interconnected nature of the tech industry increases the risk of disturbances from geopolitical discontent, supply chain volatility, raw material shortages, and new policies and policies.
- Setting the stage for growth with generative AI. The next year is expected to be transitional for generative AI, with tech companies exploring and finding applications that can drive efficiency and productivity.nist.gov
- Reckoning with guidelines for the tech market. Governments all over the world are assessing the impacts that massive tech platforms and social media networks have on businesses and customers.
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