As rising inflation, rising interest rates, and the threat of a recession increase the cost of doing business, technology leaders must be nimble, look for new management methods, and be open to rethinking existing plans. This is according to STX Next, Europe’s largest software development company specializing in Python.
Along with economic struggles, the talent shortage continues to expose a skills gap in tech teams — 68% of tech companies say they’re being held back by a lack of skilled staff — while decision makers continue to struggle to perfect remote work models and adopt new ones. technology in the workplace. However, Maciej Dziergwa, CEO of STX Next, believes that technology companies can survive and thrive by adapting practices to reflect the business environment.
Dziergwa said: “It is important that technology leaders recognize that the current economic downturn is holding back the momentum of the IT industry and respond accordingly. For example, during the height of the crisis, they should not be afraid to limit growth plans, allowing flexibility if the climate suddenly deteriorates.
“Downsizing is a worrying trend in the tech industry, with Amazon, Meta and Twitter the latest high-profile organizations to downsize, so it’s vital that companies grow sustainably to avoid job cuts.
“Technology leaders should also prioritize investing time and resources in customer acquisition and retention. This includes adopting a more customer-centric approach, such as traveling to meet with existing or potential partners face-to-face. Regular communication shows that a company during an economic downturn will be much more reliable than less visible competitors.
To deal with the IT workforce shortage, Dziergwa believes that tech companies must strive to improve the employee experience to differentiate themselves from the competition.
He added: “As skills shortages put pressure on recruitment strategies, it is time for business decision makers to be more proactive in attracting new talent or retaining current employees.
“Flexibility is a priority for most of today’s workforce, so attracting candidates starts with ensuring that remote working models are seamless and that employees are well supported even when they are working from home.
“It is important to remember that a hybrid job offer is now the minimum requirement for prospective employees. Tech companies that differentiate themselves will work harder to meet employee needs, providing financial, emotional and educational support to help workers navigate the cost-of-living crisis.
He concluded: “Economic downturns are great opportunities to pinpoint areas for improvement and strengthen company culture. The pandemic was a shock and stopped the world in its tracks – technology leaders must not let history repeat itself, no matter what happens in the coming months.
Technology leaders can share their thoughts on how to weather the coming storm by taking the CTO survey:https://www.
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