Companies are ready to invest in tech, despite a possible downturn

Big Canadian firms are ready to invest in emerging technologies – overwhelmingly so in web3 – according to the latest global tech survey by KPMG.

KPMG International surveyed more than 2,200 technology executives at some of the world’s largest organizations spanning 15 countries, including 125 in Canada. The numbers reveal that in the next two years, 95% of tech leaders at both private- and public-sector organizations in Canada plan to invest in web3 and decentralized technology, with 54% planning to invest in the metaverse.

Meanwhile, 70% plan to invest in fifth-generation wireless tech and edge computing, and 67% plan to capitalize on quantum computing. Also, 60% of respondents are planning to invest in virtual and AR tech in the next two years.

“At a time when digital leaders face rising costs, a potential recession, and a global talent crisis, they are turning to emerging technologies to build business resiliency, harness data and analytics to enhance decision making, and drive growth,” says Sanjay Pathak, partner and national leader, technology strategy and digital transformation services, KPMG in Canada.

According to Pathak, while it may seem counterintuitive to invest in innovation on the precipice of an economic downturn and an upcoming slump in holiday spending, these technologies are strong difference makers.

Respondents are acknowledging the positive impact of their digital transformation efforts to-date in terms of seeing an increase in profits and performance: in the last two years, 26% of Canadian tech leaders surveyed reported profit hikes between 6-10% directly resulting from their transformation journey, while 19% experienced an 11%+ increase in profitability and 54% a 1-5% hike.

However, despite the organizational benefits, Canadian tech leaders are behind schedule implementing their planned digital maneuvers compared with their global counterparts: 51% of Canadian tech leaders, compared to 40% globally, report delays in implementing digital transformation, despite c-suite support. This is largely due to talent shortfalls and risk aversion.

 

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