NOVIPRO Group, in collaboration with Léger, has released the 8th edition of its annual IT Trends Report, which sheds light on the current state of IT investments and the pressing challenges faced by Canadian businesses.
The report surveyed decision-makers across various industries and revealed significant concerns regarding cybersecurity and the need for increased investment in technological advancements. According to this year's findings, cybersecurity fears are more pronounced than ever, with 61 percent of respondents spurred to reassess their data security measures following widespread news coverage of data breaches. Despite this heightened awareness, the report identified a concerning lag in protective actions: 28 percent of companies admitted to not offering cybersecurity training in the past year, 13 percent have not taken steps to defend against data breaches, and 71 percent lack cyber insurance.
However, there is a silver lining, as 29 percent of companies plan to enhance their security solutions within the next two years, marking a 15 percent increase from the previous year.
The report also highlighted a resurgence in technology investments, with 80 percent of businesses planning significant IT expenditures in the upcoming two years, a 4 percent increase from last year and the first rise since the pandemic began in 2020.
Training and skills development is another area receiving much-needed attention, with two-thirds of the respondents preparing to invest in this crucial sector. This focus is critical as the report points out that IT departments' primary human resources concern this year is the lack of training and development.
Artificial Intelligence (AI) and Advanced Data Analytics are also gaining traction, with 40 percent of companies planning to invest in these technologies over the next year. Despite this interest, 20 percent of respondents remain skeptical about AI's transformative potential in their business.
Economic pressures continue to impact IT budgets, with companies struggling under the weight of pandemic repercussions and inflation. These budget constraints lead to under-investment in essential and innovative technologies that could enhance cybersecurity defences and competitive edge.
Moreover, the report suggested a need for a shift in perspective towards IT within organizations. About 67 percent of companies describe their IT infrastructure as merely "functional," indicating a lack of strategic investment in IT that could propel businesses forward. Additionally, 31 percent of respondents view their IT departments negatively, with 16 percent labeling IT as a "necessary evil."
The survey, conducted from January 8 to 20, included responses from 297 IT decision-makers, directors, and other key personnel within Canadian companies.