The I.T. Productivity Gap

Are you spending more and more on IT but not seeing any productivity gains?

Since 2019, the gap between IT expenditure and productivity improvement has been increasing. In this article, we will explain our theories about why this is happening and how to avoid it.

Spend used to go toward productivity gains

Historically, IT investments have been focused almost exclusively on productivity gains. Regarding hardware, productivity gains would look like new computers, servers, and networking equipment. In terms of software, we were seeing more robust systems with greater functionality and collaboration capability.

But we’ve reached a point where upgrading hardware and software is not yielding the same returns as before. So, with IT cost increases, what are we actually investing in?

Where is spend going now?

Here at Myrtec, we have seen a significant increase in spending on IT resillience, specifically cyber security. You will generally find that cyber resilience investments make up the largest part of customer spending in 2024. The challenge is, that the customer generally doesn’t notice any sense of productivity gain (like they used to, when they would invest in new hardware and software).

So where will productivity gains come from in the near term for business?

At Myrtec, we believe that simplifying your productivity stack, implementing better workflow and process structures and the application of AI will be the primary short-term drivers of productivity gains. These things will narrow the gap between IT investment and productivity improvement.

Summary

Forget set & forget IT. Myrtec puts forward relevant IT initiatives that will make a tangible difference toward achieving goals. Our value starts where the scope of a traditional managed service ends. Reach out to learn more.

Myrtec offers a sense of partnership that goes beyond the typical IT experience. Let’s talk.