Doesn’t it always seem like when we solve one issue, another pops up? As the world tries to move on from the downturn caused by COVID, we’re hit with another: a (potential) recession caused by inflation.
Economists are flipping a coin: some say we’ll see a recession in 2023, and some say we won’t. Since we won’t know if the future will be rainy or sunny. How are you tackling your tech strategy this year?
Doesn’t it always seem like when we solve one issue, another pops up? As the world tries to move on from the downturn caused by COVID, we’re hit with another: a (potential) recession caused by inflation.
Economists are flipping a coin: some say we’ll see a recession in 2023, and some say we won’t. Since we won’t know if the future will be rainy or sunny. How are you tackling your tech strategy this year?
Let us help you; take a seat, and we’ll give you some tools to prepare yourself for if the economy flips. Read on to find out how to approach technology in a down-turning market.
Summary
- You’re already stressed about everything else, so don’t add tech hiring to your plate. Either work to keep the team you have, or hire an external firm to help until the coast is clear.
- While everyone else is panicking, take this time to set yourself up for success. What projects need your attention?
- If you can’t think of any projects, start by either creating a digital space for customer communication or cleaning up your data strategy.
How to Approach Tech in a Down Market
Keep your tech talent close…
It happened during the dot-com bubble in the early 2000s and again in the 2008 Great Recession: companies will start to let their tech team go during a downturn.
Instead of just cost-cutting by letting talented tech resources go, consider opportunities in which they can help you weather the storm. Even if there weren’t economic issues, trying to hire tech talent nowadays is a nightmare. And it’s only going to get worse.
In December of 2022, unemployment in technology jobs was at 1.8%. Without the context that might not scare you. But think of it in terms of open positions: with an estimated 12.2 million tech workers in the US, that leaves only ~220,000 out-of-work people looking to fill 3.6 million jobs. Yikes!
So don’t lose the people who could be your biggest asset in the future because of fear; find ways to keep your tech team engaged. And if you don’t want to find ways, we can tell you some in a second.
… And your tech strategy closer
You saw those numbers: hiring tech is more stressful than ever. Even if your tech strategy is to grow in 2023, is internal hiring the best decision? We already know from past experience that most people shrink their internal team, not grow it. So how do you find balance?
If you’re looking to expand your tech team but have concerns about internal hiring, try an outsourced development firm. To avoid wasting time and money on hiring, you can use outsourced development to fill the void until the coast is clear. Then when the time is right, you can bring in your own developers.
Use it to your advantage
The saying “When the economy starts to go down, so should your budgets” makes sense, right? But when the going gets tough, the tough survive (or some other cheesy line ?).
Some companies will lower budgets to accommodate, while others will increase new project investment. Look to find a balance between staying afloat and continuing to move forward.
Investing in technology is one of the best ways your company can prepare for the storms ahead. When you deliberately invest in technology and services that make sense for you, you have a better chance of succeeding when the market recovers.
Find short-term wins
When you’re looking for wins in a down market, the best thing is to look for easy and quick fixes. You’ve been focused on growth, but now it’s time to look for low-hanging fruit.
What is that? Well, if you missed our Low Hanging Fruit blog, it’s a term that describes any action that you can do quickly and easily to get to a solution. Usually, it’s the easiest problem you can solve. You’ve probably been missing these since you’ve been looking at the big picture.
With few needed resources, minimal risk, and decent benefits, Low Hanging Fruit can be the answer to quick wins in a stressful time.
Reduce operating costs
Redirect that talented tech team to efforts that reduce the overall operating cost of the organization. This may include introducing automation, moving to the cloud, or integrating a third party to eliminate manual work.
Such projects will keep the tech team employed by offsetting lost revenue with a more efficient operation.
Have you gone digital?
If you didn’t hear it enough during COVID, we’ll say it again: your customers are looking for an always-connected experience. And if your team has more time on their hands, maybe now is when you can create those spaces for connection.
Chatbots are one way to give your users a one-on-one conversation without having to put much effort into each chat. After they’re built, of course.
Data, Data, Data
If you’re looking for other project ideas, ask yourself this question: what’s your data strategy? Your answer should include it all: how you’re getting data, how it’s being stored, and how you’re ensuring its high quality.
Perhaps the tech team can explore how to better expose insights contained within existing data. Maybe you introduce new sophisticated dashboards that expose key insights to other decisionmakers within the organization. This could lead to improved business operations and new sources of revenue.
If you don’t have an answer, this is where you should start. Data offers the crucial decision-making help required to navigate hard times (like a recession). So if you’re looking to optimize but need a jumping-off point, try and optimize your procedures around data extraction, management, and analysis.
Leap-frog Competition
down market don’t look at the long term. Much like investing in a down stock market today will provide a larger payback tomorrow when it recovers, investing in your product while competition cuts back, will likely better position you for the future when things recover.
Honestly compare your product offering to that of your competition. Use that talented tech team to enhance the capabilities that are either behind or on par with your competition. Is there an opportunity to add features or capabilities that don’t exist today that will give you a competitive edge? If you can weather the storm and keep your tech team together, this might be a great opportunity to leap-frog competition (assuming they choose to cut back).
By being proactive and keeping a future-faced mindset, you can accomplish everything we mentioned above to move forward and thrive once this is all over.
Conclusion
Don’t add more to your plate by worrying about what to do with your tech team during a down market. By focusing on small wins with your current tech team, you can set yourself up to be better on the other side.
So no matter if the economists land on heads or tails, you’ll be ready to succeed!
