A Plex IT Perspective on Leveraging Strategic IT Management to Overcome a 7% Inflation Surge

 

The most recent report from the Australian Bureau of Statistics (ABS) indicates that the Consumer Price Index (CPI) will increase by 7% in June 2023. As this impacts all industries directly, the effects on Information Technology (IT) are profound. At Plex IT, we have delved deeply into IT Management for inflation mitigation to provide a comprehensive understanding and strategic road map for navigating this economic transition effectively.

Nota bene: the factors propelling inflation are too extensive and intricate for this article. Here is the report from the ABS, if you’re interested in learning more.

 

Examining the Effects of Inflation on Information Technology

 

IT operations are not uniformly impacted by inflation. Certain aspects carry a heavier burden:

Workforce Expenses: Inflation frequently drives an increase in living expenses, necessitating wage increases. The situation is exacerbated when this coincides with a paucity of skilled labour. As a result of the recent rise in cyber threats, there is an urgent need for cybersecurity specialists. As a result, it is anticipated that personnel costs, particularly in specialised fields, will skyrocket.

Hardware and software: The pillars of the IT infrastructure, typically endure the brunt of inflation first. The costs of US-based solution providers are also affected by fluctuations in the foreign exchange market, which presently disadvantage the Australian dollar, thereby increasing the IT budget.

Cybersecurity Demand: In light of repeated high-profile data breaches and the potential introduction of new data retention laws and penalties, the cost of data management errors and security violations has increased dramatically. This circumstance has made cybersecurity professionals a highly desirable commodity.

 

IT Management for Inflation Mitigation

 

IT Perception Shift: One fundamental strategy involves changing the perception of IT from a cost centre to an investment. If IT is properly leveraged to facilitate automation, enhance customer experiences, enable e-commerce, drive digital marketing, and optimise business processes, it can result in significant cost savings and revenue generation, thereby mitigating inflationary pressures. Learn how Managed IT Service Providers can impact employee productivity here.

Strategic Planning: Strategic planning is essential to managing the financial impact of inflation on IT expenditure. Knowing your requirements in advance can assist you in securing resources that match your needs and budget, thereby mitigating the effect of inflation on your spending.

Timely Purchases: Hardware and software can be highly susceptible to inflation. They can however, be acquired judiciously to take advantage of the improving supply chain issues following COVID lockdowns. This strategy can assist businesses in securing essential IT assets prior to inflation-induced price increases.

Optimal Staffing Approach: Maintaining a clear comprehension of the value generated by your IT department is essential for generating an accurate budget. In both short-term and long-term scenarios, the outsourcing services of Plex IT provide a cost-effective solution for filling availability gaps, thereby offsetting the burden of high personnel costs.

 

Adopting Modern Work Arrangements and Investing in Training

 

Remote Work Adoption: Remote work arrangements have the dual advantage of attracting and retaining talent while reducing office expenses. By permitting true work-from-anywhere arrangements, businesses can access a larger talent pool, even in regions with relatively reduced labour costs.

Models for Asynchronous Work: Asynchronous work models enable team members to work independently without constant supervision in today’s fast-paced business environment. Utilising IT tools can help them gain access to the information they require, thereby augmenting their efficiency and adaptability, both of which are necessary to maintain competitiveness in the face of inflation. Discover remote workplace strategies in our previous blog post.

Continuous Training: Investing in the skill development of your IT staff is yet another method for maximising the return on your IT infrastructure. By training your team members to perform their duties in a more efficient and secure manner, you can simultaneously increase output and reduce risk.

 

Cybersecurity Prioritisation

 

With the average cost of a data exposure in Australian organisations projected to reach $2.92 million by 2022, cybersecurity is an investment that cannot be avoided. Soon, legislation could hold business executives accountable for data breaches. Continual investments in cybersecurity can therefore assure protection while preserving customer confidence.

 

In terms of rising IT costs and resources, the yearly inflation increase of 7% poses significant obstacles for Australian enterprises. However, Plex IT believes that proactive strategies can assist organisations in mitigating these effects and ensuring a seamless transition in this dynamic environment. By remaining informed, being proactive, and fostering a culture of continuous improvement, your organisation can build a resilient and future-ready IT ecosystem that will assist you in navigating the inflationary challenges. Contact Plex IT to discuss how your organisation can strive through these challenges.