CompTIA’s take on technology industry trends in 2023

Business as usual gets a hard reality check  

In addition to demonstrating how fragile life can be, the pandemic has shown us all that anything can happen, at any time. For businesses, a lack of workers, social distancing, remote working, and difficulties in sourcing goods; the challenges have been real. Doing things as we always have won’t be the safest option anymore.  

Many technology businesses will need to leave their comfort zones if they want to thrive, by thoroughly assessing current operations, sales and customer service, human resources, and strategy. Both consumers and businesses are evolving, and accepting that things aren't quite the same as before.

Worker/employer relationship gaps expose new challenges in hiring and retaining tech talent  

Metaverse Initiatives Will Focus on Holistic Customer Experience  

The metaverse technology trend has captured most headlines over the past 12 months, maintaining a slight lead or staying on pace with other emerging topics like AI or blockchain. CompTIA previously highlighted that in the broadest sense, the metaverse simply represents online life, so in theory we’ve been living in the metaverse for quite a while now.

If that’s the case, virtual reality (VR) represents a compelling new option for digital interactions. Instead of viewing the metaverse as a new VR-based phase of the internet, it might be more accurate to view it as an extension of omnichannel customer experiences.

As organizations consider how to build their own metaverse for their customers, there will be less focus on headsets and virtual real estate and more focus on building depth and creating connections between the many digital experiences a customer might choose.

Cloud Acceleration Drives Demand for Orchestration and FinOps 

Most organizations are taking a cloud-first approach, but the next stage will focus on how to handle complexity in a multi-cloud environment.    

We will see two big changes, firstly a greater demand for orchestration, as low barriers to entry have allowed different departments to pursue their own cloud solutions. Secondly, the primary impact of cloud sprawl is escalating cost, and the growing field of FinOps addresses the intersection of finance and IT operations. As the lines between business and IT get more and more blurred, these new activities will help organizations control their cloud activity and open new pathways for IT professionals. 

New Players in Digital Ecosystem Put More Competitive Pressure on Established Practices 

In the year ahead, the expanding vendor landscape will prod both new and established players to up their game to stand out among the rest. The ubiquity of technology will also have an impact on established business practices across the digital economy.  

John Deere, for example, which owns the lion’s share of the $68B U.S. market for farm equipment sales, has built up its internal software acumen by outfitting its autonomous farm vehicles with modern features and capabilities that are changing the industry. 

Yet John Deere’s skill with technology is wreaking havoc on an entire network of independent equipment repair dealers that farmers have used for generations to fix their resources. In effect, technology’s expansion to a non-tech industry is restricting choice downstream to customers (the farmers), whilst ushering in a subscription-based model for farm equipment repair that might, in the long run, be preferable. This is the choice conundrum that technology can impose and one that will only escalate in 2023 and beyond. 

Vendors and Partners Eye Greater Automation with Optimism – and Concern  

In 2023, MSPs will continue to use and/or experiment with automation to some degree, but there are many moving parts. Coordination among vendor-to-MSP automation, internal MSP business automation and MSP-to-customer automation is required.

Additionally, the potential for job elimination is controversial, but there is also the loss of personal touch that many small businesses count on to cement their customer relationships, removing their unique touch. 

Cybersecurity Metrics Are Tied to Evolving Risk Analysis Approach 

Cybersecurity has seen a massive overhaul in the past decade. Companies are becoming more proactive about cybersecurity assessment and reinforcement, but it is hard to measure progress.

Companies will begin adopting an organizational risk approach to metrics in 2023, along with a zero-trust framework for tactics, as they move into a post-pandemic economy. 

Inflation Uncertainty and Supply Chain Issues Continue to Complicate Sales Forecasting 

Higher inflation is leaving its mark liberally on the tech industry, affecting everyone from manufacturers to channel companies to customers. Small businesses are especially hard hit, and will have a much-diminished ability to forecast sales accurately. Their customers are facing the same challenges around cash flow and budget decisions. Some will cut back on their tech spend, where others might double down. 

Decentralized Identity Will Become the Heart of Web3 Efforts   

Web3 is a term describing the next phase of internet dynamics, and it is gaining momentum. It aims to move even more focus to individuals by decentralizing traditional models for publication and transaction, giving individuals more ownership.

Not only is identity a central component of a creator-based internet, but identity remains one of the most challenging disconnects between the physical world and the digital world. Aside from fueling distributed apps, improved identity solutions could also address the issue of anonymity on the internet or advance the login process beyond username/password. The noise around Web3 will continue in 2023, but the key area to focus on is the evolution of digital identity.

Advances in AI Spur Debate Over the Value of Content 

Today, many software applications feature some sort of intelligent algorithms, but there is still a gap between narrow AI and general AI. Some examples of AI-produced content feature sentiments that are non inclusive which is a by product of AI being trained on datasets with historical opinions that may now be outdated.  

Understanding how to use a piece of technology alone is becoming inadequate. Responsible use now involves knowledge on how the technology functions and what societal impact might come from it. A healthy balance between technology and society is required. 

So, what does this mean for technology talent in Europe?  

The technology talent needed to transform organisations and drive growth will remain in short supply. According to data, it takes an average of 69 days to fill a tech role, and there are an average of 200,000 technology vacancies which are “unfillable” due to a lack of suitable candidates.  

Moreover, the recent wave of tech lay-offs from giants like Meta, Phillips and Cazoo has left talent in the market seeking greater job stability. According to a recent report, techies are now turning to traditional businesses, like financial services and utilities, as they offer the stability and competitive salaries their start-up counterparts cannot. However, these businesses will need to work hard to retain this talent and build diverse and meaningful employer brands when the business cycle inevitably returns to favoring start-ups.

What can businesses searching for tech talent in Europe do to fix the pipeline?    

• Review their environmental credentials to ensure they’re being mindful   

One element the CompTIA report fails to touch upon is the shift to greener choices European talent is making. According to Forrester’s 2022 data, 58% of European online adults actively monitor their home energy usage to reduce their environmental footprint. This shift in behavior will not only impact how businesses respond to consumer behavior, but how they attract and retain digital talent.   

• Have a flexible working model

 Forrester’s Workforce Survey 2022 found that two out of three European adults expect to be able to work from home more frequently. The sentiment in the market is clear, employers who force people back to the office can expect resistance and attrition. Moreover, Germany companies are piloting some of the largest four-day working week trials to attract talent. And the feedback has been incredibly positive, and there is a strong feeling among competitive businesses that this will become more commonplace. 

Find your next technology role with Marks Sattin 

Whilst there is some uncertainty in the digital space, there has never been a more exciting time to be a part of the industry. At Marks Sattin, we work with a range of businesses , from disruptive start-ups to some of the oldest and most established businesses in Europe. Our exceptional reputation and network means that we are able to effectively guide you on your journey to find your next technology opportunity. 

Alternatively, if you are a business looking for someone to consult on your search to source talent, please submit a brief and we will be in touch.  

Read more about technology recruitment or get in touch with Matt Nabil today to discuss the content of this article.