Executive Outlook:
The tech industry has undergone significant transformations over the last two years, marked by widespread downsizing and a shift away from the rapid expansion mindset that characterized the pre-pandemic era. As the industry recalibrates with a more conservative approach to spending, opportunities emerge amidst the challenges. In this blog post, we explore six key trends expected to drive changes in the technology landscape in 2024 and beyond.
AI—Generative AI Moves through the Hype Cycle:
While AI is not a new concept, the rise of Generative AI, exemplified by OpenAI’s ChatGPT, is positioned to bring about substantial value. The hype surrounding AI is still palpable, with numerous applications emerging daily. In 2024, we anticipate Generative AI, particularly Large Language Models (LLMs), moving into the trough of disillusionment. Organizations investing in products delivering genuine value can expect significant growth. Tech organizations face pivotal decisions on AI products, where success could lead to substantial growth, while failure may prompt a return to non-AI offerings.
Developer Experience Gains Momentum:
Investments in tools enhancing Developer Experience (DX) are on the rise. Driven by the need to streamline engineering processes, empower teams, and enhance efficiency, this trend involves creating DX teams or committees to better represent software developers. This shift not only brings internal efficiencies but also improves the lives of developers, creating a win-win situation.
Increased Pressure to Reduce Costs:
In an era emphasizing leaner operations, organizations face mounting pressure to optimize spending. Cloud re-platforming, consolidation of SaaS tools, and hiring freezes may become common strategies. Simultaneously, organizations will need to adopt other trends to enhance team efficiency and meet business demands in a cost-effective manner.
Increased Accountability Through Data:
Data platforms continue to expand, but organizations must go beyond measuring metrics. Increasingly, teams are expected to leverage data to demonstrate value, predictability, and risk management at every development stage. Building a powerful development engine is no longer sufficient; it must be capable of propelling teams to their destinations efficiently.
ESG in Technology:
Beyond diversity, equity, and inclusion (DEI) efforts, organizations are broadening their focus to Environmental, Social, and Governance (ESG) considerations. This shift involves assessing environmental impacts, carbon production, and ethical considerations in the software development process. Teams must adapt to new requirements influencing software development and implementation choices.
DevSecOps Continues to Grow:
With a renewed focus on security, DevSecOps integrates security into every aspect of software development. Teams are now expected to prioritize security from product planning to production operation. As SaaS products evolve, teams must stay vigilant and agile to address emerging threats promptly.
Wrap-Up
As the tech industry prepares for 2024, innovation and adaptability will be paramount. From the evolution of AI and the emphasis on developer experience to the imperative to reduce costs, increase data-driven accountability, embrace ESG practices, and fortify security through DevSecOps, technology organizations face an exciting and challenging future. The ability to navigate these trends will determine success in a dynamic and ever-evolving landscape.