IT leaders must rein in tech bloat to weather economic uncertainty

Economic slowdown, the AI divide, and geopolitical tensions are forecasted for 2025, with many experts reducing their growth projections. However, there’s a hidden threat businesses may be underestimating - tech bloat. Jon Bance, Chief Operating Officer at Leading Resolutions, explores how ‘tech bloat’ – or redundant systems and outdated technologies – in particular might be making responding to these turbulent times more difficult.

2025 is already looking to be filled with challenges and opportunities. The escalating tensions between the US and China tariff wars and the race to dominate AI will undoubtedly have a ripple effect worldwide. Meanwhile, in the UK, the Office of National Statistics (ONS) found that despite a strong start, economic growth is slowing down with forecasters – most notably the Bank of England – steadily reducing their growth projections for 2025.

The challenges of an economic downturn may be finding its way into boardroom agendas, and with the upcoming Spring Forecast, businesses must be prepared to tackle any further fallout from tax rises or spending cuts that can impact supply chains.

This will mean pivoting their focus to investments in areas that offer the best potential for long-term profitability, which include introducing measures to manage cash flow, optimising IT strategy, and organising business systems and infrastructure. By embracing change early and proactively adapting, organisations can turn adversity into an opportunity that will ensure growth despite short-term turbulence.

Eliminate ‘tech bloat’ for digital efficiency

A common challenge organisations face is the accumulation of redundant systems and outdated technologies, resulting in ‘tech spaghetti’: long, intertwining strands of technology systems that slow operations and drive-up costs. Eventually, you reach a point where employees feel overwhelmed by workplace tech solutions, and it becomes for difficult to introduce change or even be sure your systems are resilient enough to adapt to market demands.

Rather than being weighed down by outdated or overlapping technologies, businesses should harmonise tools and processes across their technology environment to improve operational efficiency and reduce unnecessary expenditures. This includes adopting right sourcing without damaging innovation, consolidating data silos and infrastructure, and intelligent resourcing to prevent waste and bench time.

A strategic simplification of tools will eliminate tech bloat and position the organisation to withstand market downturns and pull further ahead of those who have not optimised their infrastructure and digital tools.

For many companies, data exists as isolated fragments of information. Only a fraction of structured data is used and these silos block interoperability, creating conflicting data sources. A recent Microsoft report describes an ‘AI divide’ emerging, with half of UK organisations not having properly implementing AI, leading to lost opportunity to boost growth. Firms that can integrate AI in halted processes and create a data strategy will be able to anticipate, predict and react to customers’ expectations.

This not only requires less dependency on human capital but gives employees the time to focus on growth work that will propel the business. In industries such as retail and finance, where customer satisfaction is key, AI-driven analytics can help businesses to swiftly adjust tactics based on the changing market by optimising pricing strategies, inventory management, and customer engagement. This strategic adoption of AI not only addresses immediate operational challenges but also positions companies to proactively navigate and capitalise on evolving market dynamics.

Mothballing resources during uncertain times

The pandemic proved that a disruptive global phenomenon could emerge from anywhere and with it, brings more pressure on the efficiency and cost of your digital environment. It’s easy to keep hold of staff and operations for stability, but the long-term expense of retaining facilities and overheads can be significant.

A thorough review of contracts can help identify inefficiencies, eliminate redundancies, and search for duplicative efforts that can be optimised for better terms. This mothballing approach not only aligns service levels with business needs but also leads to immediate cost savings that ensure essential work continues to deliver value. By conferring with technology consultancies, businesses can ensure they have the right sourcing practices to assess cost structures, optimise contracts, and drive sustainable efficiencies, to navigate economic turbulence with confidence.

Whatever the size of your organisation, contingency planning is a must to prepare businesses with the resilience to navigate long-term market shifts. This will require leaders to adopt a steadfast mind-set that envisions the company’s path toward stable growth.

By proactively addressing uncertainties, businesses can create an anticipation advantage that aligns their digital tools with future business goals and are thereby better equipped to navigate industry disruptions. Beyond a static document, a critical component of this preparation involves conducting a thorough assessment of the company’s strengths and weaknesses and addressing any stress points within their supply chain and processes before they become major obstacles.

Given the complexity of modern business environments, engaging a technology consultancy can provide valuable insights into optimising digital tools, streamlining operations, and building a future-proof foundation for growth.

Cutting costs without sacrificing expertise

Weathering the dot-com crash of the early 2000s, the 2008-2009 recession, and most recently COVID-19, the consulting industry has demonstrated its expertise in emerging stronger through economic downturns by continuously adapting to market conditions.

Businesses may now be beginning to consider strategies to locate areas of risk within their infrastructure but lack the knowledge and experience required to tackle this. Faced with the contract-or-hire conundrum, the enlisting of a technology consultant can be the difference between survival and going under.

Consultants can provide valuable risk management insights and identify areas to cut unnecessary expenses without sacrificing productivity or expertise. This minimises overhead without compromising on fresh, data-driven perspectives on business structures. Providing this visibility will allow IT leaders to enhance operational processes and create a culture of flexibility to avoid future roadblocks.

The fragility of the broader geopolitical climate, shifting regulations, and inflation cannot be ignored by businesses who wish to succeed in 2025. There is a demand for sustained yet efficient development of technology environments, which means investments in areas that offer the best potential for long-term profitability.

By making honest changes to tackle tech bloat, investing in AI-driven automation, seeking strategic guidance from the experts, and seizing opportunities where they arise, organisations will be able to tackle this turbulent climate and emerge from the crisis reinvigorated.