Current economic conditions have triggered a critical juncture for companies, compelling them to undertake a reassessment of their operations and business strategies. The goal is clear: Maintain their competitive edge and ensure sustainable profitability in an increasingly challenging business environment.
Kaseya, provider of unified IT and security management software for IT professionals in MSPs and mid-market enterprises, wanted to gain better insights on these challenges and strategies to overcome them in its 2023 IT Operations Report.
The report found that three of the main challenges circled around shrinking budgets, cybersecurity and overworked IT professionals. According to the report, 60% of respondents saw their IT budgets slashed. When it comes to those budgets, 40% said software spending would be cut, 35% think it’s hardware spending, and 29% believe it will be training and certifications that get cut.
Those are not things companies want to cut, especially with relentless cybercriminals posing continuous threats that 40% of respondents say are tough to be efficient in light of. (Especially when an outdated technology stack gets in the way of productivity.)
Cutting the IT budget of a company can have several impacts on cybersecurity. These include increased vulnerabilities due to limited resources for implementing robust security measures, reliance on outdated security infrastructure reduced investments in security awareness and training programs for employees, and the potential for non-compliance with regulatory requirements.
These consequences heighten the risk of cyber threats, breaches, legal consequences and damage to the company's reputation.
Another result of IT budget cuts? Workloads are increased. In fact, 62% of respondents reported having to frequently work on holidays or weekends. Nearly half of them confessed to pulling all-nighters, while about 40% admitted to working 50-plus hour weeks consecutively.
To stay competitive despite shrinking budgets and workloads, businesses need to find ways to better optimize workflows.
Automation, for example, reduces manual errors, speeds up repetitive tasks and allows employees to focus on more strategic and value-added activities.
Additionally, the adoption of project management tools enables businesses to effectively plan, organize and track tasks, ensuring efficient allocation of resources and timely project completion. By optimizing workflows, businesses make the most of their available resources and stay competitive in challenging times.
Businesses also need to consider outsourcing non-core functions to specialized service providers or MSPs to alleviate internal resource constraints and focus on core competencies. Actually, 80% of respondents already do outsource IT services, with IT security, network monitoring and cloud infrastructure management being top outsourced functions.
Outsourcing IT services to MSPs allows organizations to access advanced technologies and industry best practices that may not be feasible to develop in-house due to limited resources or expertise. MSPs bring experience and specialized skill sets to the table, ensuring that IT security measures, network monitoring and cloud infrastructure management are handled effectively and efficiently. Outsourcing also provides scalability and flexibility, enabling businesses to adapt to changing demands without the burden of scaling up internal operations.
These strategic approaches enable companies to stay competitive in the evolving technological landscape while focusing their internal efforts on core business priorities and innovation.
Edited by
Alex Passett
