Microsoft partner 
Advania has found massive problems for mid-market firms in Northern Europe: they’re splashing out on the wrong tech mix with no way out.
Censuswide, an independent research firm, quizzed 966 mid-market IT chiefs across the UK, Sweden, Denmark, Finland, Norway and Iceland.
The report found mid-market bosses feel snubbed with most thinking they are forking out on tech that doesn’t suit their business needs.
The findings come as company bankruptcies soar to their highest level in the UK since 2009 and mid-sized firms face sky-high borrowing costs, post-pandemic debt and rising inflation. IT budget slashes are unavoidable, yet despite mid-market firms knowing where they are overspending, the survey shows they don’t know how to chop.
Asked how they spend their IT budget today vs in an ideal world, they would change nothing.
Mid-market firms feel undervalued – 24 per cent, feel big tech offers a cold over supportive relationship. This neglect has real consequences as 29 per cent think their vendors only flog products rather than proper solutions.
Advania Director of Client Technology Value Dan Coleby said: “Our research shines a light on a perceived gap between mid-market firms and big tech which means many mid-market firms are missing out on the game-changing potential of big tech solutions. Bundled products and services can smooth operations, cut costs, and boost growth for mid-market companies. Tapping into this potential needs strategic direction and expert execution, which is where reliable technology partners play a key role in checking the tech you use – and don’t use – today.”
Almost a third of those surveyed struggle with keeping outdated software. The mid-market doesn’t have the ability to handle its current tech stack, let alone look at upgrading processes and investing in new tech. It’s juggling a ballooning budget for tech it doesn’t want, it doesn’t know how to get the most value out of big tech bundles, Coleby said.
This, along with 32 per cent overspending on bloated licensing fees and the lack of tailored options for smaller budgets, 29 per cent, paints a picture of a broken and inefficient tech system draining resources and holding back progress.
The mid-market feel their tech stack is not future-proofed as 30 per cent have a lack of budget to actually scale. This problem is coupled with the fact that 23 per cent are facing a tough battle to persuade their boardroom of the long-term business benefits of digital transformation, their decision makers are stuck in the past with little knowledge of where’s best to put their money.
Scaling up is also about more than securing funds, it starts with internal education. 26 per cent of the UK mid-market believe there is a lack of skillset to achieve scalability in their desired timeframes, worsened by the fact that 98 per cent of the mid-market cannot keep an excellent IT staff member for more than two years.
