The Tech Industry Outlook

The tech industry has been suffering a series of layoffs in the recent months, which, according to many experts, is likely to continue in the upcoming months. A final adjustment of the workforce in the industry is expected during 2023.

These adjustment processes have already happened several times in the industry, in the various previous economic crises. They are due to the adjustment of growth expectations to lower growth rates. The permanent development of new technologies both allow and require the development of new business models, whose future business volumes are not easy to estimate and therefore easily subject to over-optimistic estimates. On the other hand, financial markets are always on the search of the highest growing industries, in which they concentrate a large part of their investment volumes. This leads many times -may be inevitably- to an over-valuation of the companies and markets.

But the adjustment of the markets does not change the underlying industry and its technologies, which continues its grow and development, however at its own pace.

There are a large number of new technologies that need and will continue to develop in the next years. The main development, the cloud-based technologies -based on connectivity- still requires many changes in all industries and society in general. Network/communications infrastructure, applications, cybersecurity and energy management of the industry need to make major changes to adapt to the future. This is an ongoing process, that is likely to increase its pace in 2023. The current geopolitical problems only increase the need for change and adaptation of technologies.

Both the suppliers of technologies (the ICT industry) as well as all industries in the economy need to embrace and adopt as soon as possible the latest technologies, which allow the development of society and economy in general and opens considerable new possibilities and advantages.