The research comes three years after the UK government’s ‘stay at home’ mandate in 2020.
It surveyed over 1,200 public and private sector decision makers across the UK and found that rising costs due to inflation (23 per cent) and energy costs (24 per cent) are causing the most concern in 2023, followed by the ongoing digital skills shortage (15 per cent) and recruitment (10 per cent).
Despite pressure on cashflow across many organisations, respondents were more likely to cite ‘increasing value of existing investments’ (37 per cent) as the most important operational priority for their organisation currently, over cost optimisation (26 per cent).
While businesses surveyed were keen to make the most of their existing tools, 72 per cent of respondents believe their outdated tech is impacting their ability to operate efficiently. With growth being the number one priority for 36 per cent, decision makers are forced to balance the challenges of 2023 with their ambitions, Virgin said.
Almost a third (32 per cent) of decision makers say the biggest hindrance to their efficiency is old software or hardware (18 per cent) or incompatibility between systems or applications (14 per cent).
Digital skills is a key hindrance to embracing hybrid working, the report found, with 18 per cent of respondents saying employee resistance to tech or limited digital skills is holding back operational efficiency. 50 per cent of leaders believe less than half of their employees are using unified communications and collaboration tools, like Teams and Zoom, to their full extent.
Nearly a quarter (24 per cent) of professional services leaders still reported having limited remote work capabilities. 19 per cent cited employee attraction and retention as their biggest internal challenge this year – empowering employees with skills and flexibility will be key to addressing this, Virgin believes.
Two thirds (65 per cent) of decision makers noticed a need to demonstrate results faster when making a case for new investment in tech and connectivity in the last six months.
The stress to realise return on investment quickly was the highest amongst respondents who said old tech is significantly hindering their ability to operate efficiently (79 per cent). Despite being the most in need of new tech, these leaders appear to have more pressure to prove its value quickly.
The majority (78 per cent) of respondents rely on their IT and telecoms providers for consultancy on how to maximise the value of their old tech, leading organisations to put increased trust in partners. Three-quarters (75 per cent) agree their IT and telecoms partners are rising to the economic challenges of 2023 to provide the consultancy their organisation needs to make smart tech investment choices.
“The last three years have seen the biggest change in the way we work since the Industrial Revolution, but many companies are being left behind,” said Jo Bertram, managing director, Business and Wholesale at Virgin Media O2.
“It would be easy to assume that most organisations have embraced new technology and digital transformation to support their workforce, however that’s clearly not the case.
“With companies facing complex operational challenges and a tough macro-economic environment, the lessons learned from the pandemic should not be forgotten – it’s key businesses make smart tech investments, challenge partners to get the most out of their existing technology and give employees the tools they need to succeed.”