What Are CFOs Planning For The Future?
Right now, we’re dealing with unprecedented times with daycares, schools, and businesses shutting down to follow social distancing and shelter-in-place orders.
But what happens when we return to some sense of normalcy? CFOs around the world have been working hard to diversify and secure new lines of credit, assess cash flow to identify liquidity, and manage accounts receivables and any sort of disputes. The coronavirus pandemic has resulted in some massive challenges for many organizations around the world. In response, CFOs have been making drastic plans for the future.
Gartner Surveyed CFOs on Their Plans
Gartner surveyed 317 respondents to find out what organizations are doing to manage cash during and after the coronavirus pandemic. Here are some interesting findings:
- 74% plan on shifting some employees to remote work permanently after shutdowns are lifted
- 81% plan to exceed their contractual obligations to hourly workers using remote work as a way to offer flexible schedules
- 20% are cutting their on-premises technology spending with another 12% planning to do the same
- 13% have already cut some or all of their real estate expenses, with another 9% planning to do the same
Naturally, layoffs are imminent for many organizations, but CFOs are working hard to avoid this option. Instead, they’re taking other actions to minimize spending:
- 58% have frozen any hiring
- 60% have canceled leadership/offsite events
- 49% have delayed capital expenditures
- 32% have delayed or frozen new hire offers
- 51% have frozen travel and associated expenses
The Numbers Are Clear: Remote Work Will Be Here to Stay for the Majority of Organizations
Remote work simply makes the most sense going forward for the majority of organizations. Why? Because remote work allows organizations to minimize expenses associated with the following:
- Purchasing, maintaining and upgrading on-premises technology
- Upkeeping real estate in terms of the mortgage, heating/cooling, and other costs
- Offering the ability to retain top talent regardless of geographical location
- Preventing unnecessary time spent commuting to and from work to boost productivity
Global Workplace Analytics found that employers save approximately $11,000 per half-time remote worker each year.
Should You Switch from On-Premises Technology to Cloud-Based Solutions in Preparation for Remote Work?
For those who plan on embracing remote work well into the future, cloud-based solutions simply make the most sense. The following technology can be moved to the cloud for greater cost-savings and resiliency against disruptions:
- Business phones
- And much more
Essentially, when you migrate to the cloud, you move your data, applications, and other equipment into a virtual pool of on-demand resources that allows for more scalable compute, storage, and network services. Consider this: when you purchase an expensive, brand new server, it’s typically antiquated within a few years. Technology is simply moving far too fast nowadays, which means you’re spending a TON of money keeping up with advancements.
The cloud eliminates this because you’re paying for what you use while the cloud provider handles upgrades, maintenance, and troubleshooting as needed. There are no more surprise costs associated with keeping equipment current and safe. Instead, it’s all handled for you, and your remote workers can access what they need from any device or location.
Ready to jump onboard with remote work during and after the pandemic subsides? Let’s work together to get you set up properly. Get in touch with us via the chatbox or give us a call.