The current economic outlook is uncertain, with most economists believing that a recession is likely in 2023. In fact, most economists believe it has already started due to several factors including but not limited to rising inflation, rising interest rates, the ongoing war in Ukraine, and the resurfacing of the Covid-19 outbreak in China.
In a growth economy, businesses are prepared to take more risks by launching new products, acquiring new businesses, increasing headcount, green-lighting expensive transformation and modernisation projects. They are also prepared to borrow the money required to fund these if the profits aren’t enough to cover it. This heightened risk appetite casts the net over possible partners very wide, leaving businesses with the opportunity to be courted by any number of partners or suppliers that come out the woodwork. Sluggish growth, however, lends itself to the opposite. Businesses’ risk appetites diminish as they start to probe, understand and plan their financial foundations and the risks these entail.
At Digiata we suggest that companies become aware of the following keys in order to successfully navigate the recession:
- Work with trusted suppliers: Trusted, long term suppliers have your company’s best interests in mind. By working with a supplier that knows your industry and business, you can work together to ensure the next best steps are taken when faced with an uncertain environment and tightening budgets.
- Invest in the future: Although times are tough, companies should always be evolving and you cannot afford to stagnate. The IT landscape is constantly changing and it is important to be flexible in your approach to your digitisation and automation initiatives. This is why technology partners (and decisions around suppliers that promise growth and sustainability in the future), need to be continually invested in.
- Re-evaluate your spending, especially offshore: Foreign exchange volatility paired with high rates from international vendors can quickly eat up your budget. Take the time to evaluate your suppliers and consider mitigating the risk and high cost of working with offshore vendors during uncertain economic times
Digiata can truly speak to assisting our clients (40+ and counting) by providing valuable advice and support during times of recession. Our ability to scale allows for tactical solutions to be implemented within budget and when the time is right for the scope to scale, the tactical solution can do this seamlessly.
Our staff complement is local to South Africa, the advantages of this are namely:
- Local cost base
- Highly attentive and responsive customer service
- Favourable time zone for the rest of Africa and Europe
- Native English speaking
About Digiata
Digiata offers end-to-end solutions that cover a wide spectrum of business processes conducted in the financial services and insurance industries, including process automation, complex integration, payments and reconciliation, data analytics, customer experience and data migrations. Digiata works with mission-critical, high-volume transaction platforms and systems for some of the leading banks and investment managers and insurers across sub-Saharan Africa and the UK, combining market leading software with industry innovation to solve specific business challenges for its clients. Digiata provides the perfect balance between a solution customised to business challenges and environment, plus the speed of implementation and agility of a team of experts who have a powerful toolset to draw on.