Mid-market technology spending is at its highest level since before the pandemic, according to Deloitte Private’s “2023 Mid-market technology trends report.” More than half (53%) of respondents said their organizations are spending above 5% of revenue on technology in 2023, up from the 2019 peak of 43%, and a dramatic recovery from only 20% mid-pandemic in 2021.
Since 2013, Deloitte Private has conducted the survey of mid-market private company executives from organizations with annual revenues ranging from $250 million to more than $1 billion.
Additional findings:
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AI jumps ahead of other technologies as the top tech investment priority for the mid-market. This year, 40% of respondents say AI is their top tech investment priority; in 2021, just 12% of respondents predicted AI would have a significant impact on their business within a year. More than twice as many respondents with active AI solutions (47%) report revenue growth of 20% or higher compared with those not using or exploring AI (23%).
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Leaders appear to be seeing results from a sustained focus on data security. Three in 4 (74%) respondents indicate high or very high confidence in their business’ cyber security capabilities. Notably, respondents with active AI solutions are more than two-and-a-half times as likely to have very high confidence in their cyber security capabilities compared to businesses not using or exploring AI at all (32% vs. 11%).
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Industry boundaries blur. More than half of mid-market companies (51%) are aware of competitive threats moving into their markets from outside their sector but appear prepared to expand into adjacent industries. In the survey, 70% of respondents report that their organizations have developed an asset that could be monetized outside of their sector; that number rises to 81% among organizations reporting the highest ROI on their tech investments.
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Mid-market companies pull multiple levers to retain tech talent. Providing competitive…
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