Labour scarcity is forcing IT leaders to rethink automation economics | Computer Weekly

"Labour costs are now the biggest cost pressure facing firms, cited by 72% of UK businesses in the latest British Chambers of Commerce survey. And as the population ages, fewer working-age people will be available to support rising demand. The OECD forecasts that by 2060, the working-age population will decline by more than 30% in a quarter of advanced economies."

"Labour is typically the largest operating expense in any organisation. When labour becomes scarcer and more expensive, automation stops being an innovation initiative and becomes an economic imperative. We are approaching an automation tipping point: the moment when deploying intelligent automation becomes cheaper, faster and lower-risk than finding, hiring and retaining additional staff."

"In a recent Censuswude survey of nearly 4,300 C-suites, 98% say a talent shortage is affecting their IT vision. For enterprise and public sector organisations alike, that reality fundamentally changes the logic of IT investment."

Enterprise leaders face structural labour constraints as their primary business challenge, with 72% of UK businesses citing labour costs as their biggest pressure. The working-age population is projected to decline by over 30% in many advanced economies by 2060, while 98% of C-suite executives report talent shortages affecting their IT strategies. This labour scarcity transforms automation from a discretionary innovation initiative into an economic imperative. Organizations are reaching an automation tipping point where deploying intelligent automation becomes cheaper, faster, and lower-risk than recruiting and retaining additional staff. In competitive markets, reducing cost-to-serve through automation is now mandatory for survival rather than optional.

Read at ComputerWeekly.com