Managed services News
Economic Outlook For 2023: 10 Tech Execs Weigh In
CRN speaks with 10 solution provider executives about their economic outlook for 2023, as some economists have predicted a recession ahead. Do they see the technology industry as susceptible?
“Economic downturns are not new,” said Tanaz Choudhury, president of Houston-based TanChes Global Management. “Planning for it should be second nature for entrepreneurs.”
Many IT executives CRN spoke with said their technology services and solutions are far too important to customers of all shapes and sizes to be significantly impacted by a slowdown in the general economy due to issues such as inflation.
“The technology industry is greater than 10 percent of the global economy and growing at an accelerated rate,” said Michael Haley, co-founder and partner at Alpharetta-based Edge Solutions. “There are always opportunities for growth as companies innovate and transform their businesses through technology.”
However, other channel partner leaders are a bit more nervous about the economy in 2023.
“It’s going to be a challenge for sure. There’s a lot of insecurity,” said Robert Schaeffer, president and COO of Orange, Calif.-based CB Technologies.
Economy Expert: A ‘Modest Recession’ To Hit In 2023
Douglas Holtz-Eakin, a former chief economist for the President’s Council of Economic Advisors under President George W. Bush, told CRN he expects a modest recession to hit during the middle of 2023 due to the Federal Reserve increasing rates, continuing inflation and uncertainty ahead with China and with Russia’s war on Ukraine.
“I would say that by the second and third quarter of next year—the middle of next year—the chances of a modest recession are quite high,” said Holtz-Eakin, during his keynote at the XChange Best of Breed 2022 conference this week. “Personally, I put it at about 75 percent [chance of happening].”
With a modest recession cloud on the horizon, Holtz-Eakin believes the IT industry is in good shape.
“So I’m worried about a recession when the business community falls,” said Holtz-Eakin. “[IT solution providers] are really the canary in the coal mine. When they start seeing it get weak, then we know we have a problem.”
CRN interviewed 10 technology executives asking them their economic outlook for 2023. Here’s what they had to say.