Hackett’s 2022 Technology Key Issues
Research Also Finds Unusually High Boosts Expected in Tech Budgets
and Staffing
Technology leaders are prepared to address the transition to
virtual work and as-a-service deployment in 2022 – two of the most
likely disruptive scenarios, according to new Technology Key Issues
research from The Hackett Group, Inc. (NASDAQ: HCKT). However,
according to the research, they lack confidence in their ability to
deal with several other issues, including persistent skill
shortages and the ability to develop more mature enterprise
analytics capabilities that can drive business value.
The research also found that technology leaders expect to see
unusually high increases in budgets and staffing in 2022.
Additionally, according to the research, for the first time in five
years, the rise in technology workload will be nearly matched by
increases in the function’s staffing, operating budget and
enterprise technology spending.
The full research, “The Technology Function Agenda: 2022 Key
Issues,” is available from The Hackett Group® on a complimentary
basis, with registration, at this link:
https://www.thehackettgroup.com/2022-technology-key-issues-2201/.
Key findings from the research include:
CIOs are Well Prepared for Two of 2022’s
Most Likely Disruptive Scenarios – Technology executives cited
the transition to virtual working and the as-a-service deployment
model as the mostly likely disruptors to their operations. But the
study found that most are actively executing plans to deal with
both of these issues and companies are likely to normalize these
models in 2022. Cloud-based infrastructure is a chief enabler and
is expected to see a 30% growth rate in volume of infrastructure
deployed in 2022, according to the research. Self-service
automation is another key technology, but to be fully effective
companies must cultivate design thinking and other customer-centric
skills. At the same time, our research noted that it will take more
than technology to enable these models. It will require changes in
how people lead teams, instill and maintain culture, and how they
incent and reward collaboration and innovation.
Tech Leaders are Less Well Prepared to
Deal with Persistent Skills Shortages, Another Likely Disruptor
– According to the research, updating technology’s talent profile
and closing skills gaps is a much more problematic challenge. Only
20% of survey respondents are acting now to resolve this
long-festering problem, which has been worsened over the past two
years by the Great Resignation. Talent profiles and skills sets
must be rapidly modernized if technology organizations hope to
shift from a tactical, transactional approach to a more strategic,
service-oriented and customer-facing orientation.
Maximizing Value from Data is Key, but
Tech Leaders Lack Confidence – Technology executives also lack
confidence in their ability to meet business goals for maximizing
value from data and facilitating a mature enterprise analytics
capability – bad news for decision makers impatient for faster data
access and sharper insights. Data and analytics objectives make up
nearly one-third of the top 10 technology priorities for 2022, and
the deployment growth rates in data visualization, advanced
analytics and master data management are among the highest
projected for 2022. Some of the reasons for the lack of confidence
include the need for commitment from diverse owners of data within
the business to make progress and the fast pace at which data is
growing, changing, and becoming more complex, which can outpace
their ability to effectively manage it.
Digital Transformation is a Top Priority,
and Rapid Development and Cloud are Now the Norm – Technology
leaders are recognizing that faster time to value is critical and
is key to improving resilience, speed, agility, and productivity.
Digital transformation, a key path to improving time to value,
remains a top enterprise objective for the second year in a row and
accelerated technology adoption is expected to continue
post-pandemic, the study found. In 2022, rapid development and
DevOps have for the first time become the development approaches
for the majority of new systems development. Cloud hosting and
software-as-a-service have also become the dominant infrastructure
model for core applications. For the second year in a row, the
large-scale adoption level of core application suites in the cloud
exceeded that of on-premises legacy systems (85% deployment versus
32%, respectively). The era of in-house ownership of computing
assets is over, along with the maintenance and resiliency burdens
that come with it. Nearly 90% of respondents are planning operating
model changes in 2022, with the largest number saying they will
shift to brokering and orchestrating third-party and partner
solutions. This should help technology leaders improve time to
value and agility.
Unusually High Boosts in Budgets and
Staffing Expected – The Hackett Group’s research found that
many technology organizations will have an advantage in 2022 that
they are not accustomed to – a significant boost in resources. For
the first time in five years, the rise in technology’s workload
will be nearly matched by increases in the function’s staffing,
operating budget and enterprise tech spending, according to the
study. The research found that technology organizations expect to
see a 7.5% increase in spend in 2022; and an unusually high (in
excess of 6%) increase in technology full-time equivalents, driven,
in part, by the enterprise focus on digital transformation.
Where to Focus in 2022 – Technology
organizations will need a transformation agenda for 2022 that
reflects the lessons learned and strategic reorientation following
the crisis, as well as emerging new disruptors and opportunities.
The Hackett Group’s research recommends they focus in five key
areas: spend strategically while managing inflation impacts,
anticipate and mitigate the impact of structural talent shortages,
industrialize data and analytics capabilities, automate services
end-to-end with customer experience as the guide for design, and
complete the virtualization of technology function operations.
The Hackett Group’s 2022 Key Issues research is based on results
gathered from more than 250 executives in IT, finance, HR,
procurement, supply chain and global business services at a global
set of midsized and large enterprises.
About The Hackett Group
The Hackett Group, Inc. (NASDAQ: HCKT) is an intellectual
property-based strategic consultancy and leading enterprise
benchmarking firm to global companies, offering digital
transformation, including implementation of leading enterprise
cloud applications, workflow automation and analytics that enable
Digital World Class™ performance.
Drawing from our unparalleled IP from nearly 20,000 benchmark
studies with the world’s leading businesses – including 97% of the
Dow Jones Industrials, 94% of the Fortune 100, 70% of the DAX 30
and 51% of the FTSE 100 – captured through our leading benchmarking
platform, Quantum Leap® and our Digital Transformation Platform
(DTP), we accelerate best-practice implementations.
More information on The Hackett Group is available at:
www.thehackettgroup.com, info@thehackettgroup.com, or by calling
(770) 225-3600.
The Hackett Group, quadrant logo, World Class Defined and
Enabled, and Quantum Leap are the registered marks of The Hackett
Group.
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Gary Baker, Global Communications Director - (917) 796-2391 or
gbaker@thehackettgroup.com
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