A July 2022 survey of more than 200 CFOs and finance leaders showed that real estate/facilities management and finance functions were the most likely to face budgets cuts in the next 12 months, according to Gartner, Inc. Survey respondents identified IT and sales as the functions most likely to be getting increases.
“Given that 72% of CFOs want to trim their organization’s real estate footprint by the end of 2022 it’s to be expected that facilities management is looking at budget reductions,” said Marko Horvat, vice president, research in the Gartner Finance practice. “This makes sense for many organizations where a large share of employees is working from home at least part of the time. However, it’s also interesting to note the 9% of companies that are differentiating by increasing their real estate spending in the next 12 months.”
IT is the most popular function for increasing spending with 40% planning increases in the next 12 months, and this sentiment is holding steady from a similar survey in May 2022 when 46% of CFO respondents said they planned to scale up enterprise digital initiatives in the next two years (see Figure 1).