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Disconnect between IT and business leaders on investment priorities, report reveals

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Node 4 report finds mid-market isn’t reaching full potential with divide over how growth is to be achieved.

The UK mid-market isn’t fulfilling its full potential - putting jobs, expansion and, ultimately, the country’s growth at risk, according to research by Node4.

The Node4 report, titled Unlocking Growth in the Mid-Market, has revealed that IT and company leaders are aligned on making business expansion and market growth their top priority for the next 12 months.

Each group believes that investment in IT will improve efficiency, helping them drive growth and navigate the current global economic uncertainty. As a result, more than 80 per cent plan to either maintain or increase IT spending. 

However, Node4’s research has also exposed a significant divide on how that growth is to be achieved. This is the root cause of a productivity gap that is inhibiting the mid-market’s potential for growth, profit and long-term stability.  

For example, the survey found that IT leaders are far keener to invest in automation and AI than business leaders. Yet neither group has understood or unlocked its full potential as a growth and productivity enhancement tool, and they are not thinking bravely enough about the technology. Just 14 per cent of mid-market leaders (10 per cent business, 17 per cent IT) cite gaining a competitive advantage as a reason to invest in AI.

Furthermore, unclear ROI is reported as one of the top barriers to AI adoption, according to 36 per cent of respondents and 40 per cent of IT leaders. But the report concluded that if they joined the dots and made a leap of faith, unclear ROI wouldn’t be an issue. 

“It's clear that the mid-market is in flux,” said Richard Moseley, CEO, Node4. “We have uncovered many positives and much potential within the mid-market. There is a desire for improvement, growth, and expansion - and a belief that technology is a key enabler for each. But we have seen areas of overconfidence, complacency, and lack of vision that inhibit the potential of new and existing technology to support these ambitions. This also feeds the productivity gap - a precarious situation in such uncertain economic conditions.” 

Node4’s data points to complacency about cybersecurity and compliance. Almost all mid-market organisations claim to be confident in their ability to prevent and respond to cyber-attacks. But Node4’s findings have raised concerns that some of this confidence might be misplaced. For example, almost three-quarters of mid-market leaders think secure remote and hybrid work is a critical or high priority. However, only around one third have fully resolved data security risks associated with remote work. 

Moseley added, “By aligning technology investments with strategic priorities, mid-market organisations can navigate economic uncertainties, drive growth, and achieve competitive advantage. Our respondents' insights and data analysis provide a roadmap for business and IT leaders to collaborate effectively, deploy emerging technologies, and build a prosperous future with the potential to power the UK economy and significantly contribute to the country’s GDP.”   

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