Forrester has forecasted a modest increase of 4% in technology spending in Australia for 2024 amidst high inflation, sluggish economic growth, and rising interest rates across the region. According to Forrester, business and technology professionals in both Australia and New Zealand are concentrated on enhancing customer and business partner experiences during this financial period.
Customer experience (CX) is identified as a critical area, with firms in Australia and New Zealand focusing on fulfilling brand promises and improving customer interactions through new technologies. Such actions are not only aimed at engaging customers but also at augmenting physical experiences. Additionally, resources are being reallocated to align brand initiatives with environmental, social, and governance (ESG) reporting, driven in part by regulations like the Corporate Sustainability Reporting Directive. This move is considered crucial by 34% of respondents from the region.
In the realm of information technology (IT), the priorities differ between the two countries. In New Zealand, 32% of respondents highlight enhancing stakeholder experiences as the top IT objective. At the same time, one-quarter emphasises the importance of increasing experimentation and improving the resilience and reliability of IT infrastructures. Conversely, Australian respondents frequently cited the need to increase IT delivery speeds, with upgrading infrastructure identified as a key action for their IT organisations.
Despite the economic uncertainties, a significant majority of respondents in both countries are expecting increased spending on artificial intelligence (AI) and other emerging technologies in the coming year. Specifically, 91% of respondents in Australia and 81% in New Zealand anticipate more investment in these areas.
New Zealand's focus remains on solutions that support its agriculture and food-related exports. On the other hand, Australia prioritises technologies that empower hybrid work environments, with particular emphasis on AI tools and better utilisation of data and analytics technologies.
These insights provide a snapshot of business and IT priorities in Australia and New Zealand as both nations navigate through economic challenges. The objectives outlined in this forecast are set to shape the strategic directions of organisations within the region for the year ahead.
Forrester Research is a global market research and advisory firm that empowers organisations to make informed decisions in technology, customer experience, and business strategy. Through comprehensive research, data-driven insights, and expert guidance, Forrester helps companies navigate the complexities of digital transformation and stay ahead in competitive markets. Its thought leadership and advisory services are trusted by businesses worldwide to drive innovation and achieve measurable success.
