The technology industry is a key driver of the global economy, but it’s also highly volatile. As the global economy enters a recession, businesses worldwide are reevaluating their coping mechanisms. And for many of them, the desire to find new ways to increase productivity is a top priority.
Many people are wisely investing in new technology, which is helping them to remain competitive. It is possible to identify the broad outlines of coming economic patterns. Here are three technology investment sectors that should perform well in an economy suffering from recessionary pressures.
How Technology Can Help European Businesses Thrive in a Recession?
Technology is a key element of any business, and it can play an even bigger role in helping companies weather the economic storm. Here are three ways to use technology investments to help your business survive and even prosper:
Technology for Increasing Employee Productivity
To increase profits as the labor market forces firms to pay more for workers with specialized skills, employers have increased productivity by streamlining and automating procedures. The growth of productivity within the European Union is almost at its highest level in history, and will reach 3.05% YoY (year over year) by December 2021.
As a result of these investments, European companies are beginning to use workforce productivity technology. Large multinational corporations are leading the trend toward using digital collaboration, sharing and messaging tools among employees.
Furthermore, 89% percent of European organizations made investments in technology that supports the use of remote workers. To make it possible for employees to work remotely, companies must invest in a wide range of technologies. Employee monitoring software is one of the most effective ways to keep employees productive and boost your bottom line.
Tools for Big Data and Analytics
European corporations have made significant investments in the use of big data and analytics tools. Spending in the technology sector reportedly hit $50 billion in 2021, with experts predicting that it will rise even higher this year. Firms in the area are working together to create an infrastructure that will support their automation plans.
Businesses in Europe are investing in social media analytics and digital advertising among other things. They are working to break down the data silos within their organization, so that information can flow more freely between different parts of it.
For instance, financial controllers can use Instagram analytics data to better support spending decisions. They can export this information into reports and present it as part of their overall analysis to C-suite executives.
Automated Robotic Processes
Robotic process automation is among the technology sectors in Europe that are receiving a lot of investment. To support their data and analytics operations, European organizations are currently creating automation efforts—and these programs tend to be huge in scope.
By 2040, 12 million jobs in Europe could be lost due to current automation projects like smart factories. But despite advances in technology and the prevalence of automation, a large number of jobs will continue to involve repetitive tasks.
Industrial automation is also undergoing a new wave, with some facilities nearing automation. In a variety of industries, businesses will benefit from lower labor costs, compensating for revenue losses.
The Bottom Line
The current economic climate is causing major shifts in labor markets as European industries accelerate their technological investments. In spite of this, European companies rely on their investments in technology to protect them from the negative effects of a possible slump.
They have pursued three main initiatives: lowering labor costs, increasing the efficiency of operations, and making a worker more productive. Whether Europe’s businesses will be protected from the negative effects on their bottom lines remains to be seen. As Europe emerges from the current financial crisis, its economies will undoubtedly look very different and have greater resilience than they did before.
