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15 Nov 2022
Companies Are Increasing Modern Data Protection for Cloud Computing to Reduce Security Risks
UK technology spending has grown over the past year faster than during any period since 2000. The growth is attributed to increased software, IT services, and communications spending.
In the first quarter of this year, total technology spending reached £25 billion, up by 2.6% from £24.3 billion last year.
Despite expecting the economy to drop in the UK, over 90% of digital leaders say that they plan to spend money on technology at a rate set to grow faster than in over 15 years. On the other hand, only one in seven thinks the country's budget will fall.
Nash Squared's Digital Leadership Report, in collaboration with CIONET, found that investment in emerging technologies like RPA, AI, and Big Data is sluggish in the UK, threatening innovation opportunities through global economic instability.
The UK continues to be a leader in the use of the cloud, with 67% of employers reporting extensive cloud usage). However, companies are reducing investment in Big Data and RPA, which are essential for innovation.
Cyber Attacks Are Now Hitting Large Organizations in the UK.
With so much investment in cloud storage, more than a third (41%) of UK digital leaders say the cloud is leading to security headaches, especially for large distributed organizations.
The majority of the largest UK companies (IT budget >$250m) have experienced a major cyber attack within the past two years (44%).
A growing awareness of the politicization of cyber warfare has led almost half of the digital leaders in the UK (45%) to fear attacks by foreign powers - up from just 12% last year.
The 2022 Nash Squared's Digital Leadership Report Also Found:
Digital Leaders' Inability to Find Good Talent Has Remained a Significant Issue.
Cyber has remained one of the most sought-after skills in the UK, as a DCMS report found a cyber-security shortfall of 10,000 workers annually.
Despite this shortfall and the constant risk of digital threats, 32% of digital leaders in the UK feel confident that all reasonable risks have been taken.
Keeping Pay Demands Reasonable in the War for Talent Is a Big Challenge
According to digital leaders in the UK, 68% cannot keep up with the pace of change due to a skills shortage.
Most respondents (57%) believe UK organizations will never have enough technology staff, and almost two-thirds (63%) believe that rising living costs have made salaries unsustainable.
Government Policies Aren't Working on Tech Skills
Seventy-eight percent of digital leaders in the United Kingdom feel that government policies are ineffective at addressing the tech skills shortage, compared to just forty-one percent of Asia.
Hybrid/Remote Working Boosts Women in Tech and Access to Global Talent
Women in the UK's tech sector are reporting a positive impact from hybrid working, with 2 to 3 days at the office required on average. as a result, we have seen an increase in the number of female leaders in the UK (from 12% in 2021), almost a quarter (23%) of our technology team is now female, and 27% of our new hires over the past two years have been women. Additionally, the report found that 25 percent of digital leaders have become more effective at recruiting overseas talent due to remote working.
Robots, a Way to Plug the Gap in the Tech Talent Market –
Around 1 in 7 (14%) of the UK's digital leaders plan to automate their workforce using digital labor over the next five years.
Bev White, CEO of Nash Squared, said: "Economic headwinds are gathering and indicators are turning negative – but despite or even because of this, UK businesses know that investment in technology remains crucial. Both to maximize the efficiency of what they already have and to become more agile and responsive in highly unpredictable conditions, technology is the key enabler.
"But while technology investment intentions stand at their third highest level in over 15 years, there are signs that some businesses are reining back on investment in areas like AI and Big Data.
The reasons for this are understandable, but organizations should be careful not to cut back too deeply – they risk falling too far off the pace to catch up again, leaving a long-lasting dent in their competitive positioning.
"Meanwhile, another area that truly demands ongoing investment is cyber security. The threat environment is highly charged, and the rise in concerns about foreign power activity is striking. The world has become a more dangerous place in 2022. UK businesses must take robust defensive steps accordingly."
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