Inflation, Recession Fears Rattle Tech Leaders in US, UK

Technical Team

Rising inflation and the looming recession have had a negative impact on IT leaders and their teams over the past six months, even as their workloads have increased.

A study by integration and automation platform SnapLogic found that 87% of IT decision makers in the UK and US have worked under pressure. They attributed this to reduced headcount and shrinking budgets.

Rising inflation and the looming recession are having a negative impact on IT leaders and their teams. @SnapLogic #HR #HRTech Click here to tweet

More than half of respondents (59%) said they were planning or had already cut their IT budget as a direct result of economic concerns. Almost half (44%) said they are either planning to freeze or reduce their IT headcount – or have already reduced.

Despite all of this, SnapLogic found that more than a quarter of UK respondents (29.1%) are hiring or planning to hire new staff. In the US, more than half of those surveyed planned to do so.

Increasing demands and mental health

In terms of technology work, the #1 demand tech teams are now facing is to integrate new applications and platforms (48%). The next top 2 are dealing with challenges caused by shadow IT (47%) and managing legacy systems (40%).

Meanwhile, a third of UK respondents (33%) said they are already considering low-code/no-code technologies to meet business needs and evolving IT workloads. Only 25% in the US said the same.

SnapLogic said less than half of respondents (45%) believed reduced or limited resources would mean their IT department would have to delay or cancel critical work. At the same time, 35% said critical work will take longer. Unsurprisingly, 35% said they have to work longer hours to hit targets and deliver on time. That, according to SnapLogic, is “a worrying number given broader issues with work-related stress and mental health concerns.”

survival techniques

IT leaders use a variety of methods to manage their workloads, the study found. More than half of respondents (57%) said they are empowering their non-IT users to take on routine technology tasks and are also investing in artificial intelligence and automation to eliminate manual labor (54%).

While 50% of respondents say they hire or train additional staff, a smaller percentage (31%) clear or abandon projects.

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