CFOs are investing heavy amounts into automation not despite but because of inflation-related price increases.
This is according to a recent survey from Gartner that showed not only 98% saying they will not cut their current tech investments, but 66% in fact planning to increase them over the next year. These CFOs are investing specifically in automation technology that they believe will reduce costs and increase efficiency. In particular, 33% are aiming to automate more back office functions; meanwhile, 27% said they want to focus on automating operations such as warehousing and transportation. Beyond automation, CFOs also expressed great interest in price optimization metrics, strategic sourcing and category management, and tech-driven operations planning.
“Automating back-office workflows is a key to achieving efficiency gains across a number of areas, including accounts payable, accounts receivable and internal IT services, such as helpdesk support,” said Randeep Rathindran, vice president of research in the Gartner Finance Practice, in a statement. “In a cash-constrained environment, where margins are under pressure, the urgency to improve productivity in these areas is heightened.”
These investments stand in contrast to other areas that are more vulnerable to cuts: The survey found that 46% of CFOs said they planned to cut spending on consultants, 45% plan to cut real estate spending, and 39% plan to spend less on contractors.