New Delhi: About 61 per cent of CFOs globally are planning to increase average employee compensation this year, compared to 71 per cent in 2024 and 86 per cent in 2023.
According to a Gartner report, CFOs are planning significant technology budget increases, viewing digital investments as crucial for growth and efficiency.
While 77 per cent of respondents plan to boost spending in the technology category with almost half 47 per cent of CFOs intending to increase spending by 10 per cent or more in 2025 compared to last year.
The results underscore the critical role of technology in driving profitable growth and efficiency across industries.
The continued focus on technology aligns with developments in traditional and generative AI, which promise to drive new offerings, enhance decision-making, and boost productivity, said Randeep Rathindran, Distinguished VP, Research in the Gartner Finance practice.
According to the report, although the cooling labour market gives organisations more negotiating power on compensation, CFOs should remain sensitised to the potential risks of attrition and low engagement as prices for household necessities remain stubbornly high.
The report further stated that most sectors are prioritising technology spending in 2025.
In the retail sector, cost of goods sold (COGS) and compensation are likely to see increases as organisations aim to enhance product quality and customer interactions. Meanwhile, in the banking sector, compensation and external services are also prioritised to attract technical talent and outsource nonstrategic work.
Rathindran said that investing in technology is no longer a choice but a necessity for companies aiming to maintain a competitive edge.
The consistent increase in technology budgets across sectors highlights the ongoing strategic shift towards digital transformation as a driver of innovation and efficiency, he mentioned.
Globally, firms have been sustaining this high pace of technology spend increases over time as 50 per cent of CFOs had already planned to boost the technology budget by 10 per cent or more last year, and 43 per cent planned the same in 2023, said the report.
(IANS)
