The impact of hybrid working models on enterprise IT budgets

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The impact of hybrid working models on enterprise IT budgets
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  • The overall IT expenditure has been greatly impacted by this new work-from-home or hybrid culture, especially as the tech hirings have hit record levels.
  • Remote working culture has brought with it an expanding cyber risk landscape.
  • The hybrid work model has given birth to popular concepts like hoteling and hot-desking.
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The COVID-19 pandemic-induced remote working culture has seen many businesses realigning their IT budgets to adapt to the hybrid working model. In the current market scenario, cost optimization is more important than ever for a company to improve its finances and stay afloat. The leaders must be capable of thinking outside the box to survive the crisis.

In the current scenario, the one crucial question facing every IT leader is this: Will the hybrid working model save costs?

Data references for better decision-making


The overall IT expenditure has been greatly impacted by this new work-from-home or hybrid culture, especially as the tech hirings have hit record levels. This has been confirmed by the latest survey released by Enterprise Technology Research (ETR).

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According to the most recent edition of ETR's Technology Spending Intentions Survey (TSIS), which is released quarterly, demand for IT personnel is at an all-time high. The TSIS report's results are consistent with figures from the US Bureau of Labor Statistics, which predicts a 667,600 increase in IT positions in the US between 2020 and 2030, a 13% annual growth rate.

What areas will take precedence in companies’ IT spending?

The IT expenditure priorities


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  1. Cyber security: Remote working culture has brought with it an expanding cyber risk landscape. A sudden shift to remote working has accelerated the demand for more stringent cybersecurity measures. Cybersecurity is the top priority for most organisations.
  2. Networking: Networking has seen the most significant increase in enterprise priority. The emphasis on remote work has prompted the prioritisation of networking equipment and the consequent stiffening of demand with insufficient supply. Hence, companies are struggling to acquire networking gear.
  3. Cloud migration and analytics/data warehousing are also deemed highly significant.
To summarise, the recent increase in the number of cyberattacks, as well as their targeting of remote workers, is the driving force behind many recent IT investment decisions.


Since the pandemic, cybersecurity has been regarded as the top priority. New security problems have arisen as a result of the tremendous spread of assaults and the need to accommodate distant employees, which accounts for some of the increased focus on security. Work-from-home numbers are also beginning to level down, which could explain the increase in network spending.

The Budget Cut Option


  • A survey from Global Workforce Analytics found that in a hybrid arrangement, a typical US firm could save up to $10,767 per person.
  • Plus, the overhead expenditures, such as providing employee amenities, have also decreased substantially as well.
  • Businesses are now free from having to keep up with the pre-pandemic desk count because most workers work from home, guaranteeing more savings.
All these savings make a strong case for considering the hybrid model on a more permanent basis.

How much does it cost to set up a hybrid workplace?


Businesses are invested in the success of the hybrid work paradigm. However, in order to succeed, one must first comprehend the financial ramifications.

The hybrid work model has given birth to popular concepts like hoteling and hot-desking. On the busiest days, a hybrid-modelled office should have a maximum occupancy of about 60%. Plus, the business can get rid of desks that are rarely used.
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Cubicles are also becoming obsolete. Instead, employees want private pods that they may use when they want to get away from the office humdrum.

Employees are increasingly coming to work for the purpose of collaboration. This is in line with the requirement for conference rooms and open, collaborative areas. So, as per experts, these, along with the basics like wi-fi, lighting and sanitation would cost roughly £200/$204 per employee per month for refurbished offices. And, that’s surely a fair deal to consider.

A win-win


To conclude, the hybrid working culture is excellent for lowering costs. Furthermore, it is likely to appeal to a wide range of employees, boosting their productivity and satisfaction. However, only organisations that completely comprehend it, and have weighed its pros and cons have a chance of succeeding in this long-drawn race.



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