There have always been known advantages to outsourcing in some situations, such as process simplification, on-demand expertise, labor costs optimization and core focus enablement. ![]() Outsourcing continued to rise in 20, and 2023 will see that trend accelerate notably. Laid-off employees can find positions with these organizations, although the working environment may be different from what they’re used to. Growing startup tech companies, stalwart industries going through digital modernizations and public-sector entities in government and education are all starved for talent. ![]() These layoffs will bring more cloud talent to the labor pool than has ever been available. Together, these firms have produced the bulk of the world’s cloud experience, be that in engineering, sales, product development or customer experience. Tech layoffs at the largest firms (including Salesforce, Google, Amazon and Meta) will continue into mid-2023. But after 2023, blockchain will no longer be synonymous with it. It will now be trusted to convey much more, including identities - think voting applications or transcript transmission - as well as authenticity and compliance.Ĭryptocurrency will rise again. It has been trusted to convey billions in value. Now is the time for blockchain technology to stand on its own merit and be understood, seen and applied for its many strengths. The cryptocurrency winter, culminating in the FTX storm, has obviously shaken the cryptocurrency industry and, along with it, investments in blockchain-based Web3 application development. There is even a cryptocurrency company named Blockchain. Many outside and within the technology space have long conflated cryptocurrency and blockchain. New technologies enabling and embracing virtual cards, wallets, payments and transfers will continue to see strong growth and large institutional investment. In the last decade, it has even made cash a bit outdated.īut its day has come. ![]() Shifts in virtual paymentĪ staple in payment systems since the early 80s, the magnetic stripe did away with carbon copy impression machines and enabled the ATM revolution. Many B2C product and services companies will scale back heavily on virtual reality ventures, with only the gaming ventures continuing at full speed. The grumblers’ reward for their accurate prognostication was 11,000 employees laid off. Lacking a clear path to monetization, the efforts sputtered. Whether through self-fulfilling prophecy or just being too early to the party, the grumblers were proven right. management that the coming metaverse party was overhyped. ![]() Unrealistic expectations for virtual realityĮarly 2022 heard increasingly loud grumblings from within Meta Platforms Inc. Look for strategic mergers and acquisitions as opposed to buyouts in Q3 and Q4. Even mergers of near equals that are still accretive to growth and earnings before interest, taxes, depreciation and amortization may occur. Strategic acquisitions will look attractive as ways to build equity. Uncertain economic conditions and investor trepidation have notably decreased valuations, and there has been a subsequent decrease in founder exits.ĭriven to grow nonetheless, firms will still seek mergers. However, founders - having enjoyed the nondilutive benefits of venture debt - will continue to seek out venture debt structures and private lenders who will happily fill the void as the waters return to warmer temperatures in late 2023. The peer pressure of private lenders wading into the warm economic waters and usurping some of the traditional financial institutions’ commercial lending leadership was the motivation.Īs the economic waters have turned a little colder, financial institutions’ intolerance for risk has sent many, including Citi, shivering back to the cabana. Crest, fall and crest again in venture debtĢ0 saw big-name financial institutions dip their big toes in venture debt funding. But, needing to put their surplus to work, they’ll make larger placements focused on mature to maturing technologies. We will see venture capital firms make fewer technology placements in 2023. The economic uncertainty, however, left venture capitalists skittish to place bets. This led to venture capital funds being able to raise a great deal of money. The declining public market in 2022 left larger investors looking for returns from other sources. Fewer, bigger and better when it comes to venture capital funding placements Meanwhile, issues with talent, funding and regulations will continue to develop. And in 2023, you can expect that same momentum.Įmerging trends in technology, such as the rise of blockchain and the fall of virtual reality, will lead to changes in the industry landscape. Technology, more than any other industry, moves fast. By: Kevin Smith, Principal and National Leader of Wipfli’s Technology and Innovation Industry
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