In this article, we propose to carry out a review of some tech trends for 2023, both technologies and issues that we believe will be important for the tech industry. 

What is expected in the technology industry for 2023?

Some of the tech trends will be the natural evolution of processes that have already begun to take place after the pandemic, such as the digitization of more and more services, products, and consumer habits. Therefore, we think that companies will continue to pay close attention to developments in AI and Machine Learning, cloud computing, and the development of Web 3. 
 
However, the need for innovation and the search for alternatives will also be a must, taking into account the context of economic and geopolitical uncertainty. We believe that many opportunities will open up in new fields that will transform business.  

In this sense, large capital investments are predicted for the consolidation of: 

• The metaverse
• Quantum computing
• Cybersecurity
• And sustainable technology

A summary of 2022 in tech

2022 was a complex year with many focuses of attention that influenced the technology market. On the one hand, the process that had begun during the pandemic was accelerated: Digital transformation. This is due to the need for companies to get closer to the consumption habits of their customers (increasingly digitized) and also to the need to optimize processes and reduce costs.  

Since the beginning of the year, a combination both unusual and complex will be followed. On the one hand, we’ll face the results of the geopolitical conflict unleashed by the war between Russia and Ukraine, added to the remnants of the pandemic and the problems in the supply chain that arose from it. This is exacerbated by record inflation rates, the fall in stock prices, the crypto winter, and massive layoffs in technology companies. 

Bearing this in mind, it will not come as a surprise that, at least during the first months of 2023, the dominant trend for companies will be the search to reduce costs and the application of technology for the automation and optimization of processes.  

Although experts signal that a period of recession is expected in 2023, technology budgets are not forecast to shrink, despite some actions that may suggest that major technology companies are adjusting to this new reality. 

However, according to a Bain report, 77% of companies expect to increase or maintain their technology budgets in 2023. 

What will be the goals for tech companies in 2023?

Even though it can be difficult to predict the future, we can be sure that technology will help the economy recover and be a key factor in overcoming the difficulties and obstacles mentioned above. 

We list a number of subjects below that organizations and their leaders will consider to be crucial in 2023: 

• Overcoming the talent shortage: Consulting firm Korn Ferry estimates that by 2030, there will be 85 million job vacancies due to a lack of skills and specialization. And in the technology market, the gap will be 4.3 million. The consequences of the skill gap are several, among them: it is one of the main barriers to innovation, it hinders the digital transformation of organizations, and it is becoming more and more expensive for HR areas to obtain valuable resources.

One of the alternatives that company executives could consider to mitigate this problem is hiring an outsourcing vendor that could streamline the IT talent selection process and minimize costs.  

Another alternative is to expand the talent pool, making a more diverse selection that allows professionals to fill vacant positions. 

• Sustainable technologies: Sustainability and climate change are cross-cutting concerns for most industries. As for the technology industry, the goal will be to achieve more efficient energy spending and environmentally friendly technologies. In addition, we believe that advances in the development of emissions management software and other green technologies will be important in the coming years.

• Improve security: With the sustained growth of the IoT, cloud computing, and the trend in which more and more aspects of daily life are digitized, it is essential to protect one of the most valuable assets: data. Both for organizations and individuals.  As a result, board members prioritize cybersecurity as cyberattacks can result in millions of dollars in financial losses and a negative impact on customer trust, among other inconveniences.

• The digital transformation will continue: As we mentioned, 2023 will be a year of economic uncertainty, so companies will bet on seeking strategies that allow them to be more efficient while spending less. That is why we believe that more and more processes will continue to be digitized: migration to the cloud will increase, processes will be automated, and more companies will migrate to an Everything as a Service (XaaS) business model.
• Outsourcing: By 2023, the demand for software development roles is expected to increase by 70%. Many companies are conducting US searches to complete their IT teams. Previously, in order to lower costs, companies established offices in countries where there were large numbers of tech talents, and where they could also hire them for lower salaries.

 
With the popularization of remote work, after the pandemic, companies began to hire outsourcing providers to hire talent in regions of the world where there are qualified professionals, with time zones similar to the US and lower costs. 

 
One of the regions where the spotlight was placed is Latin America, as it has a similar time zone, cultural affinity with the US, and a vast pool of technology talent. 

Tech trends that we expect for 2023

These will be some of the tech trends of the coming year. In some cases, the deepening of developments that had been taking place in previous years will continue. In other cases, such as the metaverse or quantum computing, we believe that it will be a year of consolidation for these technologies and that the non-specialized public will also become familiar with their characteristics and functionalities. 

• Adaptive AI: Adaptive artificial intelligence differs from traditional AI in that the former can revise its own code to adapt to changes that were not anticipated when the code was first written. This provides great flexibility and adaptability to organizations, especially in this context of social and economic changes.

• Metaverse: Although there may be a certain feeling of disappointment about the progress of the metaverse throughout 2022, we believe that in 2023 new business opportunities will open up. Many of the big technology companies have made investments in improving the quality of 3D avatars, reducing the costs of VR headsets to make them accessible to the general public, and also achieving a robust technological infrastructure, capable of providing all the computing power, storage, and bandwidth necessary to provide a truly immersive experience.

Some of the other business opportunities that will be perfected in 2023 are:

1. Virtual retail stores and showrooms. 
 
2. Remote work and education sector. 
 
3. Virtual spaces for cultural or marketing events. 
 
4. Video games and AR. 

• Improve Web3: The concept of Web3 implies a series of trends in relation to the decentralization of the Web, blockchain technologies and the token-based economy. Despite the fact that cryptocurrencies have been going through a process of contraction and difficulties in recent months, Web3 is much broader than its financial applications.
  
  Web3 has disruptive potential in terms of a change in the governance of the Web, in which a few centralized entities would no longer have control over vast swaths of the Internet, deciding what can and cannot be said and done. Some of the services that could grow in 2023 are:
  
  1. Decentralized social networks.
  
  2. More secure transactions (With Smart Contracts).
  
  3. The growth of decentralized autonomous organizations (DAOs).

• Better cloud services: Following one of the goals for organizations to optimize costs, the migration and improvement of cloud services will be one of the tech trends. Cloud computing makes it possible to dispense with the costs of buying and maintaining storage infrastructure and servers, hiring a provider to take care of those tasks.

• Digital twins: Another trend that will grow during 2023 is digital twins, a virtual model designed to accurately reflect a physical object, which allows testing as it produces performance data in different controlled environments. This will have important applications in medicine, automobile manufacturing, and aerospace, among others.

• Developments in Quantum: Quantum computing is a new generation of computational technology that will allow an exponential increase in the computational and complex problem-solving capabilities of computers. Also, will be able to improve the predictions run by machine learning models.
  
  Currently, quantum computing is very expensive and only the largest companies can finance research on it. This, added to the lack of professionals skilled for its development, mean that a great leap towards this new computing model is still not foreseen.
  
  In these years of development, it is expected to be similar to what happened with traditional computing, in which only a few companies or governments could access quantum computing so that it would later be accessible to the general public. However, the race for quantum computing has already begun and it is estimated that investment will grow by more than 50% in the next six years, reaching an approximate spending of 8.6 billion dollars worldwide by 2027.

Summary

These are some of the goals and trends that we will regularly hear about throughout 2023. We believe that there are three fundamental points on which technological advances will be based in a context of economic uncertainty but also by other problems in the agenda related to climate change and the needs linked to the increasing digitization of life. These three points are: 

• The need to reduce costs through automation and migration to the cloud.
• The improvement of digital services, but also the problems that arise from it, with the main focus on cybersecurity.
• The development of environmentally friendly technology.

If you are looking for technological solutions for your company but you are also interested in reducing costs, contact us.  

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