While seeking to combat many of these threats, I&O leaders are also being asked to meet organizational expectations with funding that only keeps pace with inflation at best. In 2023, 41% of I&O leaders’ budgets increased but stayed steady relative to inflation, while 37% of budgets were either cut or stayed steady but declined in real terms due to inflation. Just 27% of I&O leaders’ budgets increased and grew relative to inflation.
“While it remains to be seen what 2024 budgets will look like, the lack of real funding growth observed to date could cause projects to be deferred into next year, causing a cascading appropriations challenge,” said Haight. “Given this scenario, I&O leaders must work smarter to achieve business outcomes with fewer resources.”
Top Actions for I&O Leaders to Navigate Economic Headwinds
Based on the survey findings, Gartner identified three key actions that successful I&O organizations were adopting to counteract the forces of economic uncertainty. I&O leaders that leveraged these practices were three times more likely to help their enterprises better navigate a turbulent economy.
These actions include:
1. Developing a workplace environment that improves well-being and inclusiveness.
I&O leaders often face challenges recruiting and retaining the necessary talent to achieve their objectives. Within I&O teams that were rated as the most effective, 84% of leaders reported building a welcoming and inclusive workplace. Furthermore, 79% of I&O leaders at highly effective organizations ensured the holistic wellness of employees by holding them accountable for personalizing their well-being progress.
2. Undertaking actions that improve I&O efficiency through enhanced analysis capabilities.
Maximizing the impact of technology and other investments remains a critical focus for I&O leaders amidst continued economic uncertainty. According to the survey, 89% of leaders in highly effective I&O organizations formulate strategies for process transformation and optimization, and 82% identify opportunities to reduce technology costs through economies of scale or cross-enterprise synergies.
3. Enhancing I&O’s ability to become a full-fledged partner in digital business activities
I&O leaders may struggle to be viewed as a key partner with business leaders, due to an inability to easily link IT investments to business outcomes. To enhance their contribution to the organization’s digital business strategy, the survey found that 92% of effective I&O leaders foster better coordination of I&O digital investments across lines of business or product lines. Additionally, 84% apply objective analysis to translate enterprise priorities into investments that advance digital business potential, and 79% provide a common language for business and I&O stakeholders to coordinate digital investment decisions.
Gartner clients can read more in “3 Evidence-Based Practices I&O Leaders Must Adopt to Navigate Economic Headwinds” and in “IT Leaders Must Act Now to Navigate Economic Headwinds.”
Gartner IT Infrastructure, Operations & Cloud Strategies Conference
Gartner analysts are providing I&O trends at the Gartner IT Infrastructure, Operations & Cloud Strategies Conferences taking place this week in Las Vegas and December 12-13 in Tokyo. Follow news and updates from these conferences on X using #GartnerIO.
About Gartner for Infrastructure & IT Operations Leaders
Gartner for Infrastructure & IT Operations Leaders helps heads of I&O reinvent how they deliver value for the business. Additional information is available at https://www.gartner.com/en/infrastructure-and-it-operations-leaders.
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