Australian Companies To Increase Software Spending In 2023
- By CDOTrends editors
- January 30, 2023
As technology continues to become more advanced and integral to business operations, businesses are taking steps to prepare for an expected surge in software spending. As more companies embrace digital transformation initiatives, small and medium-sized businesses in Australia are expected to increase their software spending significantly.
Specifically, two-thirds of Australian businesses expect to increase their software spending for 2023, according to B2B software search website Capterra, which asked company decision-makers about their plans for technology and software in 2023.
Most Australian companies (53%) said they expect their budgets will increase by 10-20% over last year, whereas 14% anticipate a 21+ or more percentage point rise in spending. Compared with international companies' investment plans, Australian businesses are in the middle of the pack — slightly higher than U.K. firms but not as high as those from countries like Canada and the U.S.
The study, which was gathered from the responses of more than 250 firms, revealed 2023 trends in technological investment opportunities and business goals of small and medium-sized businesses across multiple industries in Australia.
Research suggested that economic instability and a global pandemic have led many businesses to streamline their operations to handle workplace fluctuations better digitally.
As more businesses recognize the advantages of a flexible work environment, they are beginning to modernize their processes and digitize traditional workflows. However, Capterra also reported that while many companies are trying to implement technology into their workplaces, the study shows that some of these efforts fail because managers aren't willing or don’t know how to support them.
Only 46% of Australian survey respondents believe that their company has enough resources to monitor emerging technologies compared to the 55% international average. More than half of Australian decision-makers (46%) say that the compatibility of new technologies with existing systems is a challenge in implementing them.
Capterra's study also found that companies focus on particular software solutions as they increase their technology budgets. The technologies rated as top investment priorities were IT management (40%), sales/CRM software (40%), and cybersecurity (37%). With the rise of sophisticated cyberattacks in 2022, 32% of companies cite it as one of their biggest challenges this year; more companies want software designed to fight them.
“Software implementation can help companies weather any potential business challenges that they may face in 2023, including supply chain disruptions, cyberattacks, and labor shortages,” said Laura Burgess, content analyst for Capterra Australia.
She added, “It's important for companies to determine whether their software choices reflect the organization’s needs. Adopting technologies can help with forecasting and growth, which are especially crucial during economic uncertainty."
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