Looking ahead to the rest of 2024, Australia and New Zealand’s economic prospects are modest with both nations facing similar economic issues since mid-2023 including high inflation, sluggish growth and rising interest rates. Against this complex backdrop, Forrester anticipates only a modest increase (+4.0%) in tech spending in Australia for 2024. And despite their geographic proximity, cultural connections, and close economic ties Australian and New Zealand business and technology professionals have vastly different priorities as their organizations strive for a return to sustainable growth. The result is a variety of challenges and opportunities across both business and technology sectors of the Antipodes, including:
- Business priorities and challenges. Business and technology professionals in Australia, who may have a more optimistic economic perspective, are equally focused on enhancing the experiences of their customers and business partners. New Zealand’s prioritization of brand improvement and the reduction of enterprise risk aims to balance immediate tactical opportunities while also planning for long-term outcomes. However, the journey back to growth is not without challenges. Across both countries a lack of effective measurement of outcomes, resistance to tech adoption and lack of resources all pose significant hurdles. These challenges underscore the need for more robust strategic planning, partnerships, and judicious use of automation.
- IT priorities and actions. The continually shifting technology landscape see leaders in Australia and New Zealand focusing on prioritizing reliability and resilience. Amidst this dynamic, the modernization of infrastructure has emerged as a crucial factor. It not only sustains their ongoing operations but also elevates the experience of stakeholders. This is becoming increasingly important as the expectations from technology are on the rise among both internal and external customers. However, the challenging socio-economic conditions in the initial post-pandemic years have introduced additional hurdles. These include escalating resource limitations, communication breakdowns, and security issues. The latter only heightened by failings such as the Optus and MediaWorks breaches. The key to addressing these seemingly intractable issues lies in a re-emphasis on improving business and technology alignment across organizational strategy, operations, and leadership.
- Tech investments. Artificial intelligence and other important emerging technologies continue to change the way businesses operate. In response business and technology professionals across Australia and New Zealand remain committed to ramping up investments in these new technologies. A strategic priority on both sides of the Tasman Sea in seeking new growth opportunities is the application of AI within IT operations and software development processes. However, these new frontiers are not without concerns. Public fumbles such as the Robodebt scandal in Australia have curbed local enthusiasm, as business negotiate the complex landscape of information security and data privacy. Given escalating cybersecurity threats, it’s reassuring to see that security and risk management are due to receive substantial investments in the coming year.
To navigate these complexities, CIOs in Australia and New Zealand organization must ensure effective resource management, comprehensive security measures, and improved communication channels to align IT initiatives with strategic goals. Forrester’s high-performance IT framework can help drive relentless and superior alignment in three dimensions: strategy, operations, and leadership.
For more detailed insights and recommendations, Forrester clients can read the full report here. Or engage with Forrester analysts to explore how these findings can help shape your organization’s strategic planning for the next 12 months no matter which side of the “Ditch” you’re from.
