UK Businesses Face Inflation Fears, Yet Tech Keeps Hope Alive
In a fresh Zoho Digital Health Study, 39 % of UK firms raise high inflation as the number one worry they can’t shake off. They’re juggling rising prices, wobbly supply chains, a wave of resignations, and a financial storm that’s been brewing for ages.
Are the Hard Times Over?
More than a half‑plus share (55 %) say the worst of the economic drama is behind us. Still, with inflation presently hitting 4.6 %—a whopping 2.4 % above the government’s 2 % target—
- 45 % of businesses remain uneasy about the future.
- Another 68 % have trimmed tech spend this year because Bank of England rates are on the climb.
What’s Still in the Investment Playbook
Even with tight budgets, firms are sharpening their focus on tech that promises a real bang for the buck. Key priorities include:
- Customer Experience (CX) – keeping clients happy.
- Employee Experience (EX) – making the workplace feel less like a grind.
- Artificial Intelligence (AI) – 67 % already using it or planning big moves.
- Data Privacy – 30 % see it as the top concern to keep data safe.
Hear From the Zoho UK Visionary
Sachin Agrawal, Managing Director, Zoho UK, sums it up: “Business confidence has taken a hit over the past few years, so it’s no shock that many are wary of the UK economy’s steadiness. Rightly so, businesses are looking to future‑proof themselves against a hanging economic ‘permacrisis’ that keeps throwing curveballs.”
He adds, “Companies that invest in the right tech enjoy a solid payoff. Those that ignore digital transformation risk stagnation. A data‑driven firm can tap real‑time insights to spot chances and cut risks.”
Why Go Digital?
Successful AI rollout hinges on customer trust—think automation, smarter forecasting, or better support. With the right digital toolkit, leadership style, culture, and a customer‑first vibe, a business can boost:
- Flexibility
- Agility
- Adaptability
As only 19 % of UK companies boast strong digital health, it’s clear the digital punch could be a game‑changer for performance.
Bottom Line
Inflation’s still a headache for many, but tech—especially AI and data privacy—offers a lifeline. Firms that invest wisely may ride out the turbulence and come out stronger, with a product that’s more resilient, customer‑centric, and future‑ready.
Are We Losing the Battle? The Digital Solution
Picture this: the market’s been turning into a gladiator arena. Competitors are coming armed with new gadgets, customers are shouting for more personality, and your staff is juggling expectations like circus performers. If you think you’re safe, double‑check, because the risks are higher than a cat on a vertical fence ladder.
Why “No One” Should Brush Off Digitisation
- Cutting‑Edge Competition. Every side of the market is now running on cloud‑based dashboards. Refasting old tech is a recipe for being out‑of‑sync.
- Demand’s Growth Spurt. Customers now expect instant results and your employees crave smarter tools – you can’t have one without the other.
- Economic Stagnation Dial‑Ups. The ONS just announced a slight 0.3% contraction in October; it’s a reminder that stagnation doesn’t stay put for long.
A UK Pride Call: From “Tech Supper” to “Tech Superpower”
Shocking, but we’re looking at 57% of Brits who feel the government ought to sling more cash at budding tech firms. The message is crystal: the state should tag‑team the innovators and ensure they have the road‑map to win the game.
What to Do? Grab Your Digital Lasso!
1. Dive Into Digital. Think of it as a bingo of new tools and cloud upgrades.
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