As I look to the horizon for 2025, the current economic landscape presents a mix of caution and opportunity. According to the latest Bank of Canada’s Business Outlook Survey for Q3 2024, businesses are still holding back investment plans in response to factors like interest rates and softening consumer demand. Yet, as demand indicators show slight improvement with anticipated rate reductions, businesses may find room to reallocate funds into targeted investments that deliver immediate efficiency gains and set a resilient foundation for future growth.
From the report and my real-world experience, I understand that the economic sentiment among Canadian businesses remains conservative, with most firms projecting modest growth due to weak consumer demand and high operational costs. Although demand for goods and services stabilizes, businesses remain cautious about committing to new capital expenditures or expanding headcounts. Instead, many focus on stabilizing their costs, improving internal efficiencies, and optimizing existing assets. As interest rates are expected to continue to ease gradually, this could create more favorable conditions for investment later in the year. Until then, organizations are well-advised to prioritize areas where technology can enhance operational resilience and lower ongoing expenses.
For further details, you can read the latest Business Outlook Survey by the Bank of Canada here:
https://www.bankofcanada.ca/2024/10/business-outlook-survey-third-quarter-of-2024/.
In light of these economic pressures, strategic IT investments can enhance efficiency and adaptability. Here are some primary focus areas I see should be considered within our sphere of expertise at Eclipsys with our Partners:
With labor shortages affecting the IT sector across many industries, managed services can help alleviate the strain on internal teams, allowing them to focus on strategic projects rather than routine maintenance. By leveraging managed services, organizations can ensure critical systems run smoothly while minimizing the need for additional in-house IT resources. This approach not only helps in a tight labor market but also reduces costs related to recruiting, retention, and management of internal teams.
High costs tied to Oracle licensing can add strain to budgets, especially in a year where every dollar counts. Optimizing licenses - by moving to a license-included Cloud model as an example - helps reduce unnecessary spending, align software use with current needs, and prevent unexpected expenses from misaligned usage. Adjusting these to reflect actual business demands enables firms to redirect funds into growth-oriented initiatives without increasing overall spending.
Multi and Hybrid cloud solutions are increasingly popular among firms seeking to balance the benefits of the cloud with the control of on-premises systems. This approach allows businesses to migrate workloads (such as the database) gradually and retain other layers on-site or in a different cloud provider, creating a more adaptable infrastructure that can evolve with changing needs. A flexible hybrid approach supports both continuity and scalability, two crucial factors as organizations navigate uncertain times.
Cybersecurity remains a top priority as hybrid working models and complex infrastructures increase the potential for vulnerabilities. Investing in robust data protection measures, including immutable and secure backup solutions, Cloud hardening, and advanced database encryption, helps guard against data breaches and operational disruptions. By proactively addressing cybersecurity, companies can protect their assets, avoid costly downtime, and maintain trust with their clients and stakeholders.
Eclipsys provides specialized services to help organizations optimize their Oracle environments. Our focus on efficiency and resilience ensures that every investment aligns with your strategic goals, helping you meet today’s demands while positioning you for future growth.
As 2025 approaches, let’s turn today’s caution into tomorrow’s competitive advantage. With Eclipsys as your partner, we’ll help make 2025 a year of impactful and strategically aligned investments.