The Tech Deficit- Europe wakes up to a new problem

You know a problem is real when it effects businesses of all sizes, in all locations and requires a similar response from everyone. The new digital economy has uncovered a ‘tech deficit’ which fits neatly into these categories. The compelling statistics in a new report make for interesting, if uncomfortable reading for many CIOs and IT decision makers.

Colt commissioned this research report  to help identify the scale and nature of this deficit. The report charts the origins and growth of the problem stemming from the constant pressure faced by businesses in Europe to balance the demands of their customers against the operational and commercial realities of their internal infrastructure.

It raises alarm bells, but all problems come with opportunity- the report also identifies ways to respond to this challenge and points to a shift in approach that can have long term benefits for businesses of all sizes across Europe.

The Tech Deficit is the gap that has developed between businesses’ objectives and what their IT infrastructure can support.  More is being asked of already creaking infrastructures-this would be okay if businesses were responding with increased investment and innovative thinking around technology deployment. This is not the case and a gap has emerged from static budgets and business approaches struggling to keep pace with additional demands being placed on existing infrastructure. As demand grows, so too does the gap. A considered, action-oriented response is needed or businesses across Europe can all expect some pain soon.

Key findings:

• 72% of European businesses face a Tech Deficit
• Only 26% of businesses think their current infrastructure is future ready
• The biggest tech deficits reside in network performance (40%), infrastructure performance (28%) and mobile access / device flexibility (27%)

This has implications across the board and affects IT, network, voice and data centre services. The problems run deep and whether you are a large business or small, serviced directly via providers or indirectly through the channel, a response is required to counteract a set of serious consequences which will only grow the longer they are left unattended. We are living in a new digital economy that comes with exciting opportunities but also requires fast decisions and swift action when addressing challenges. More than 8 in 10 businesses acknowledge they need to evolve their current technology infrastructure to meet business needs over the next two years.

So what does all this point to? Well, a major shift in how we think about, buy and manage technology. Specifically, a move away from buying things towards infrastructure that supports service based delivery demanded by customers everywhere. How will all this play out? Colt has identified the following key trends for European businesses:

1. Service based delivery will help change how businesses think about owning infrastructure, moving away from buying technology and embracing a service based model. 
2. Flexibility will drive business models and commercial arrangements. Businesses will seek out suppliers that enable them to manage change.
3. Simplification of processes will empower the IT department: moving to the cloud, consolidating suppliers and identifying strategic partners.

There will be a spike in activity around these trends as businesses feel the pinch and look for strategic partnerships who can provide answers. The answers need to remove the complexity they are facing in day to day operations and also arm them with the services and solutions needed to respond to the tech deficit in a way that gives them a competitive edge. This is the opportunity that comes with the tech deficit, those who get out in front of it now can get clear of problems and embrace the digital economy without barriers. But only, if they act now – this deficit won’t get any smaller.