Despite the current economic uncertainty, 72% of high tech leaders in the U.S., Canada and Western Europe have plans to grow revenue in 2023, according a survey by Gartner, Inc. Furthermore, nearly half of those leaders believe they will be able to outperform their competition this year.

The Gartner survey was conducted in the second half of 2022 among 195 respondents in the U.S, Canada, the U.K., France and Germany to understand how economic turbulence poses challenges to general managers, how confident they are in their ability to achieve their plans and the measures planned to tackle the uncertainty. 

“Outperforming the market through an uncertain market requires an above average ability to execute on revenue ambitions,” said Mark McDonald, Vice President and Gartner Fellow. “The survey results indicate that almost half of firms (46%) do not have a sufficient ability to execute to reliably realize their revenue goals.”

The survey found that many technology leaders entered 2023 prepared for a potential recession. Paradoxically many of the actions taken concentrated on reducing costs rather than focusing on growing revenue and market relevance (see Figure 1).

Raising the Relevance of Technology Solutions Is the Key to Growth
Gartner forecasts overall IT spending will grow 2.4% in 2023, with enterprise IT spending projected to grow 4.1%. The context of IT spending is changing as buyers increasingly value and make investments in business outcomes rather than buying solutions.

“Changes in context challenge the relevance of technology solutions. Lower relevance reduces willingness to pay and renew relationships. Gartner sees relevance as the connection between a provider’s solution and how applicable it is to current customer needs. That connection exists at every level from the C-level to individual developers. Without relevance, we see sales cycles extend and renewals at greater risk,” said McDonald.

Context is dynamic requiring leaders to raise their relevance across three situations — the now, and whenever context changes in the near term, with the ultimate goal of positioning solutions for future growth when economic conditions turn favorable in the next economy.

“It is up to the provider to know when context changes and to rebuild context through refocusing messaging and repositioning to meet customers where they are,” said McDonald.

Gartner clients can read more in “Raising Technology and Service Provider Relevance in 2023: Now, Near and Next.”

High tech leaders can learn how to execute and respond to changes in the market to deliver growth in the Gartner special report Leading Now: When Uncertainty Upsets Business As Usual.

Additional information will be shared in the complimentary Gartner webinar Overcome Hidden Challenges to Grow Tech and Service Provider Revenue, taking place April 6 at 11AM ET. Register here.

Gartner Tech Growth & Innovation Conference
Gartner analysts will provide additional analysis on how technology service providers can accelerate growth, drive product innovation and leverage emerging technologies at the Gartner Tech Growth & Innovation Conference, taking place June 14-15 in San Diego. Follow news and updates from the conference on Twitter using #GartnerTGI.

About Gartner for High Tech
Gartner for High Tech equips tech leaders and their teams with role-based best practices, industry insights and strategic views into emerging trends and market changes to achieve their mission-critical priorities and build the successful organizations of tomorrow. Additional information is available at www.gartner.com/en/industries/high-tech.

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