Digital firms investing 3% more money in cutting-edge tech solutions than their counterparts are saving almost 29% in overall costs, a study by Hackett Group has found.
As they streamline their operations with new tech solutions, their overall operational costs, including labor, outsourcing, technology, and overhead costs, drop 29%, the study noted.
These firms, described as “digital world-class technology organizations’ in the report, have automated more than 50% of their business operations, allowing their CIOs to allocate more team members to roles that create new value.
Those tech firms that invested more in digital solutions have 21% more manpower in (software) development roles than their peers.
“They also enable self-service on 82% of eligible tasks, compared to 47% of peers. This automation enables business stakeholders, as well as technology functions, to reallocate staff to more value-creating roles, which drives business performance and differentiation,” the report noted.
Digital investments may reduce business costs — but only if the right investments are done strategically.
“Data and analytics, automation, and cloud-first strategies are efficient investments to start with,” the report added.
These best-performing firms have been found spending 63% more on new techs, such as machine learning, natural language processing, and blockchain, than their counterparts.