Professional services firms weighing up risks and rewards of tech investment
More than three-quarters of project-focused businesses plan to increase their investment in emerging technology. However, while a similar number are convinced they should invest in AI to expand services, fewer than half of companies expect this will increase profits.
While 79% of professional services firms expect to increase investment in emerging technologies, significant challenges still hold back the wider adoption of new technologies.
According to the study ‘Adopting Emerging Tech’ by software and solutions provider Deltek, economic headwinds mean firms are less prone to taking risks with their funds.
Bret Tushaus, vice president of product management at Deltek, commented on the findings, “Project management challenges have been further compounded by ongoing global socioeconomic disruption, placing greater pressure on firms to optimise cost and reduce resources to stay profitable while meeting customer demand. It's like trying to keep a household running smoothly during tough times, making sure all needs are met while tightening the budget.”
The top challenge to adoption was found to be the cost of technology, cited by 54%. Erring on the side of caution might seem to make most sense, but it also comes with risks. Looking at the data, Deltek found that an alarming 30% of firms surveyed said failing to make significant digital transformation progress would result in the loss of market share within 12 months, making it essential for firms to overcome barriers, quickly.
Investing in and implementing AI is also seen as a competitive advantage by 74% of respondents, with businesses believing it improves their ability to expand the services they can deliver to the market. Again, this is not without its risks, though. Only 41% believe successful implementation will increase profits – meaning simply throwing money at the technology is by no means a guarantee of success either. To help this, focusing on core resource allocation first might be a crucial step to getting the most of any investment.
Tushaus added, “Investing in project ERP as a backbone, will provide insight into business metrics, optimisation of processes, and support the productivity gains needed to help firms ensure they stay on-track and demonstrate success confidently to key stakeholders. Think of it as a detailed family planner that helps you track expenses, plan meals, and manage schedules all in one place, making it easier to keep everything under control and show progress.”
