Europe and the US are leading the way in the forecasted recession for 2023, due to persistently high inflation and increasing interest rates. With minimal projected GDP growth, modern technologies can play a crucial role in reducing the impact of economic downturns.
As caution looms, it can be tempting to reign in on your investment. Your initial thought is to balance the books and save money where you can which, on the surface, sounds like the sensible thing to do.
But consider this. Investing in technology, specifically RabbitMQ in the face of recession can actually reduce the cost of doing business and save you money over time. In fact, leading digital organisations that have prioritised this has a lower cost of doing business and create a significant competitive edge in the current inflationary environment.
Carving out a tech budget can signify that you’re conscious of the current challenges while being hopeful for the future. Being mindful of the long game can allow businesses to thrive as well as survive.
So if you really want to recession-proof your business? We’ll tell you why it’s best to invest.
Executives are already planning tech investments
In a survey complied by Qualtrics, a majority of C-suite level executives (85%) expect spending to increase this year, as their companies go through both a workforce and digital transformation, with tech priorities as follows:
- Tech modernisation (73%)
- Cybersecurity (73%)
- Staffing/retaining workforce (72%)
- Training/reskilling workforce (70%)
- Remote work support (70%)
This is a major shift from previous cycles we’ve seen. In the past, tech investments have been one of the first on the chopping block. But now, businesses have taken note that investing in technology is not a cost, but a business driver and differentiator.
The game of business survival has changed
Prior to the pandemic in 2020, digital capabilities were not considered a high priority by businesses when considering preparations for a potential economic downturn. Fast forward to today, and we can see that COVID-19 has expedited digital change for businesses.
Companies have accelerated the digitisation of customer and supply-chain interactions by three to four years, and a sudden change in consumer habits has steered the ship.
Consumers made a drastic shift towards online channels, which meant that industries had to ramp up their digital offerings fast. Rates of adoption during this time were lightyears of ahead when compared to previous years (as shown above).
Fast forward to today and 48% of consumers say their buying habits have permanently changed since the pandemic. Businesses have to maintain their digital presence, in order to serve a growing market.
Adapting to demand
Technologies such as RabbitMQ have been integral to support the high volume of incoming requests and efficiently accommodate digital acceleration.
Consider this- your website might be selling tickets to an event, and you’re anticipating a record number of visitors. Your main consideration is ensuring your satisfying customer wait times. So what’s the solution? A faster operating system.
RabbitMQ technology helps with customer wait times through its ability to handle high volumes of incoming requests. These requests are distributed to various parts of the system, ensuring that each one is processed promptly. By effectively handling the increased load, RabbitMQ helps businesses maintain shorter wait times, accommodating increased or decreased message volumes with ease, as business demands fluctuate during a recession.
Sustainability is steering the tech agenda
Do you think businesses are slowing down on ESG during a recession? Think again.
A recent study revealed nearly half of CFOs plan to increase investment in ESG initiatives this year despite high inflation, ongoing supply chain challenges and the risk of recession.
According to the World Economic Forum, 90% of executives believe sustainability is important. However, only 60% of organisations have sustainability strategies.
Addressing ESG initiatives during a recession requires a thoughtful approach from C-Suite leaders and should be apparent across your tech offerings. While not all software is inherently sustainable, tools like RabbitMQ can support sustainable practices.
For example, organisations can further enhance the sustainability of their messaging infrastructure by running RabbitMQ on energy-efficient hardware, leveraging cloud services with renewable energy commitments, or optimising their message routing algorithms to minimise resource usage. These additional considerations can contribute to a more sustainable use of RabbitMQ as part of a broader sustainability framework within a business.
Providing professional, reliable, and cutting-edge products and services with ESG values can bring meaningful change to people’s lives. And building social responsibility is critical to support the entire ecosystem.
Tech built for business operations
IT was once run by very centralised systems. But today, most software used by businesses is outsourced- meaning all the services are disjointed and require training to understand how to manage each one individually, which can be costly.
SOA stands for Service-Oriented Architecture. In relation to RabbitMQ, SOA refers to a design approach where software applications are built as a collection of individual services that communicate with each other to perform specific tasks. RabbitMQ can play a role in facilitating communication between these services.
Imagine your company’s different departments- sales, inventory, shipping, HR etc. Each department has its own software application that handles specific tasks. In a traditional architecture, these applications might be tightly coupled, meaning they directly interact with each other.
With a service-oriented architecture, the applications are designed as separate services. Each service focuses on a specific function, like processing sales orders, managing inventory, or tracking shipments. These services can communicate with each other by sending messages.
RabbitMQ acts as a messenger between these services. When one service needs to send information or request something from another service, it can publish a message to RabbitMQ. The receiving service listens and responds accordingly. This decoupled approach allows services to interact without having direct knowledge of each other, promoting flexibility and scalability.
For example, when a sales application receives a new order, it can publish a message to RabbitMQ containing the order details. The inventory service, subscribed to the relevant message queue, receives the order information, updates the inventory, and sends a confirmation back through RabbitMQ. The shipping service can then listen for shipping requests and initiate the shipping process.
During a recession, SOA with RabbitMQ enables a more modular and flexible system, where services can be developed, deployed, and scaled independently. It simplifies communication between different components, promotes loose coupling, and allows for efficient integration and the ability to quickly adapt to changing market conditions of a recession.
Tech supports recession-proofing goals
Investment in innovative digital initiatives is indispensable for a constantly evolving digital transformation journey, especially during market shifts. Programmes such as RabbitMQ provide organisations with the flexibility required to swiftly shift to new solutions, responding to market changes more quickly.
To conclude, although recessions can be intimidating, it is crucial for businesses to embrace technology as a means to prepare themselves and ensure a positive customer experience. Leveraging technological solutions allows businesses to stay resilient, adapt to changing market dynamics, and position themselves for long-term success, even in challenging economic times.
If you’d like to talk about your current tech space, feel free to drop us a line.