Tag Archives: Report

Accountancy & Accounts, Business

Latest guidance to help businesses boost confidence in AI from ACCA and EY

  • New paper sets out key considerations for business leaders and policy makers to help bolster confidence in AI systems
  • Guidance aims to support effective AI assessments, through better governance, compliance and performance
  • Paper seeks to help businesses deploy safe, reliable and effective AI systems, as AI adoption grows

Businesses that undertake effective assessments of their artificial intelligence (AI) systems can better harness the technology’s potential to boost innovation, productivity, and growth, according to a policy paper published by global accountancy body ACCA, (the Association of Chartered Certified Accountants) and global professional services organisation, EY.

 

The report – AI Assessments: Enhancing Confidence in AI – explores the emerging field of AI assessments, which encompasses a broad spectrum of AI evaluations, spanning technical, governance and compliance assessments, through to more traditional assurance and audits.

 

It outlines the role these assessments can play in evaluating whether AI systems are well governed, compliant with applicable laws and regulations, and perform in line with business leaders’ and other users’ stated expectations. It makes the case that effective AI assessments allow businesses to deploy AI systems that are more likely to be effective, reliable and trusted.

 

The paper also addresses the current challenges that come with these emerging types of AI assessments and identifies the key elements needed to make them robust and meaningful for their different users.

 

AI assessments, whether voluntary or mandated, are increasingly being considered and used by businesses, investors, insurers and policymakers as adoption and deployment of AI accelerates around the world, and amid a growing need to build and enhance trust in the technology.

The publication of this paper comes at a time when the policy landscape relating to AI assessment continues to evolve. Among the latest developments is the Trump administration’s publication of an AI Action Plan, which states that ‘rigorous evaluations can be a critical tool in defining and measuring AI reliability and performance in regulated industries’.

 

The paper details how effective AI assessments can foster increased confidence in AI. The paper identifies three emerging types of AI assessments:

  • Governance assessments – to evaluate the internal governance structures surrounding AI systems;
  • Conformity assessments – to determine compliance with any applicable laws, regulations and standards; and
  • Performance assessments – to measure AI systems against predefined quality and performance metrics.

 

The report outlines a number of current challenges that hinder the robustness and effectiveness of some AI assessment frameworks and explains how these can be managed through the adoption of well-specified objectives; clearly defined methodologies and criteria; and competent, objective and professionally accountable providers.

 

The report also sets out a number of concrete suggestions to help business leaders and policymakers ensure AI assessments are as effective as possible, including:

  • Business leaders should consider the role AI assessments – including voluntary ones – can play in enhancing corporate governance, risk management and building confidence in AI systems among customers and employees.
  • Policymakers are encouraged to very clearly define the purpose, components, methodology and criteria of AI assessments; and support AI assessment standards that are – to the extent practicable – compatible with those in other countries and in other ways minimally burdensome on businesses.
  • Policymakers should also support capacity-building in the market to provide high-quality, consistent, and cost-effective assessments.

 

Helen Brand, chief executive, ACCA, said: “As AI scales across the economy the ability to trust what it says is not just important, it is vital for the public interest. This is an area where we need to bridge skills gaps and build trust in the AI eco-system as part of driving sustainable business. We look forward to collaborating with policymakers and others in this fascinating and important area.”

 

Marie-Laure Delarue, EY global vice-chair, assurance, says: “AI has been advancing faster than many of us could have imagined, and it now faces an inflection point, presenting incredible opportunities as well as complexities and risks. It is hard to overstate the importance of ensuring safe and effective adoption of AI. Rigorous assessments are an important tool to help build confidence in the technology, and confidence is the key to unlocking AI’s full potential as a driver of growth and prosperity.

 

“As businesses navigate the complexities of AI deployment, they are asking fundamental questions about the meaning and impact of their AI initiatives. This reflects a growing demand for trust services that align with EY’s existing capabilities in assessments, readiness evaluations, and compliance.”

 

Read the report

Accountancy & Accounts, Business, Business Finance, Research

Confidence among UK accountants rises despite tough trading conditions

Following a historic low of confidence in Q4 2024, Q1 2025 shows an uptick amongst UK accountants, although still well below normal confidence levels

Confidence among UK accountants rose marginally in Q1 2025, after falling to the lowest ever level in Q4 2024, according to the Q1 2025 Global Economic Conditions Survey (GECS). The survey from ACCA (the Association of Chartered Certified Accountants) and IMA® (Institute of Management Accountants) suggests that confidence amongst British SMEs has materially improved in Q1, but across the board there was a mixed set of results.

 

There was a second consecutive increase in the New Orders Index, though it remains below its historical average, but not significantly. While the Employment Index registered a decent improvement, the Capital Expenditure Index declined modestly – both are at very low levels historically.

 

Concerns about suppliers and customers going out of business declined this quarter, however there were significant concerns evident in some key measures. There was a meaningful rise in the proportion of respondents reporting increased operating costs – it is now at its highest since Q1 2023. Problems securing prompt payment and problems accessing finance indices both rose for the second consecutive quarter, which could negatively impact business cashflow and financial viability.

 

Jonathan Ashworth, chief economist, ACCA, said: “Global growth has generally proved quite resilient over recent quarters. Nonetheless, the longer that confidence remains depressed, the greater the risk that a self-reinforcing negative cycle could potentially develop, with firms pulling back on orders, capital expenditure and hiring. Unfortunately, with global trade tensions stepping

 

 

up markedly since the survey was completed, the downside risks to the global economy have increased significantly.”

 

Glenn Collins, head of technical and strategic engagement, ACCA UK, added: “With business confidence so low and all the talk of government strategies, now is the time for action. The lack of final published strategies has a negative impact on businesses, who look to those plans to prioritise investment and grow. While the global market flux provides a challenging environment, it also provides opportunities for business to expand into new markets and a lack of positive forward momentum is holding us back.”

 

Alain Mulder, senior director, Europe Operations & Global Special Projects at IMA, said: “New US policies on trade and government spending, and the uncertainty surrounding them, appear to have had a large negative impact on confidence, while declines in the global markets and signs of slowing in the US economy were likely factors too.”

 

Read the report here

Accountancy & Accounts, AI, Business, Tech, Technology

Accountants’ professional judgement critical to success in the age of AI

 

  • The importance of professional judgement and critical thinking underlined as organisations work to adopt artificial intelligence
  • Research from leading global accountancy body ACCA highlights that successful AI adoption will need better understanding from human end-users

 

Accounting professionals have an important role to play in supporting their organisations to achieve AI adoption and implementation, according to new research from leading global accountancy body, ACCA (the Association of Chartered Certified Accountants).

 

According to the latest in the series of ACCA’s AI Monitor reports, Risk and responsibility, AI tools augment human capabilities while raising new questions about control, reliability and professional responsibility.

 

When it comes to classifying AI risks, a couple of immediate threats for many organisations relate to the significant amounts of investment being committed and either unrealistic expectations or poor judgement concerning the potential impact of integration.

 

While AI continues to promise huge potential, real value remains far more elusive and difficult to quantify.

 

ACCA believes success will come through combining traditional financial acumen with new forms of technological oversight to maintain the profession’s fundamental role as arbiters of trust and integrity. These capabilities don’t replace professional judgement, but underscore its importance.

 

Professional judgement and critical thinking will be fundamental to dealing with AI-generated insights. Demonstrating the application of professional expertise and documenting how decisions are made when using AI is important to support transparency and accountability.

 

Alistair Brisbourne, head of technology research, ACCA, said: “Safely introducing AI into how our organisations work and make decisions isn’t just about technology – it’s about redefining how we exercise things like professional judgement. As regulatory frameworks evolve and AI capabilities expand, success will depend on striking the right balance: leveraging AI’s analytical power while strengthening professional expertise.

 

“Traditional concepts of materiality and professional scepticism are being reframed in the context of AI systems that can analyse entire datasets rather than samples during an audit, for example. This shift challenges accountants to think differently about risk assessment and the nature of professional evidence.”

 

While professionals don’t need to be technical experts, they need sufficient understanding to exercise appropriate judgement. Being an AI specialist in every application is impossible. Instead, the profession needs to develop consistent frameworks that ensure uniformity in language and practice across different projects and applications.

 

The report points out that accountants are uniquely positioned to harness AI’s potential while maintaining robust safeguards. But their role in AI risk management extends beyond traditional financial controls. Moving forward, their contribution must reflect a three-layered approach: data, architecture, and business impact.

 

Brisbourne added: “Organisations need to build principles of transparency, accountability and clear procedures for monitoring and improvement into their AI adoption and implementation plans. If they do that, they’ll find themselves well-positioned to leverage new capabilities and meet changing regulatory and stakeholder expectations.”

 

Read the shorthand report.

 

Visit ACCA’s website for more information.

Accountancy & Accounts, Business, Business Finance, Finance and Banking

ACCA sets out how accountancy profession can meet the nature reporting challenge

Report sets out accountant’s vital role in protecting and restoring the natural world

 

​​​Accountants must understand the concepts, principles, challenges and opportunities of nature-related reporting to engage with boards and management on this increasingly vital issue.

 

The global accountancy body ACCA has issued a ​paper Empowering business: navigating nature-related reporting, designed to assist accountants supporting organisations to undertake nature-related reporting and drive meaningful action to tackle the sustainability-related challenges.

 

​​Jessica Bingham, regional policy ​​​l​​​​​​​ead for ACCA​ and the report author, said: “Nature is the foundation for all life on Earth​,​ and our research suggests that an overwhelming number of organisations do not effectively assess and communicate their impacts and dependencies on nature.”

 

Organisations are increasingly disclosing their impacts and dependencies on nature, especially with the advent of the Corporate Sustainability Reporting Directive in Europe. The International Sustainability Standards Board (ISSB) has​ recently announced​ that it plans to carry out ​​research into biodiversity, ecosystems and ecosystem services as part of its work plan over the next two years​, with a view to developing global reporting standards​. ​         ​

 

These changes will require accountants to increase their knowledge in this area. ​A ​​c​ore​ element of ​​reporting ​these ​​matters is​ ​setting out​​ an organisation’s material nature-related impacts, dependencies, risks and opportunities and underpins interconnections between the natural, social and human capitals.

 

The ​key messages in​​​ the report will be discussed by Jessica Bingham at COP16 on biodiversity in Colombia 21 October​ ​-​ ​1 November​, including​​​ a panel discussion with standard setter the Global Reporting Initiative, credit agency S&P and biopharmaceutical company AstraZeneca.   ​​

​

​ACCA’s ​​​​research​, ​​in​ collaboration with​ Glasgow University​,​ found that 95% of the 183 early adopters of ​disclosures recommended by ​The Taskforce on Nature-related Financial Disclosures (TNFD) have policies or commitments to halt and ​reverse​ biodiversity loss.

 

However​,​ only 35% have policies and commitments informed by 2030 and 2050 global diversity frameworks (GBFs). Organisations that are already working with accountants on Task Force on Climate-related Financial Disclosures (TCFD) are giving themselves a head start in developing nature-related reporting​,​​ making themselves more ​resilient​ and managing their impact on nature​.

 

The rise of nature-related reporting is ​an opportunity for individual accountants and the profession across strategic planning, value creation, risk management, regulatory compliance, partnership development and decision making processes.

 

Lloyd Powell, head of ACCA Wales/Cymru, said: “Nature-related reporting is increasingly recognised as an essential component of organisational reporting. The role of accountants in this domain is pivotal in driving sustainable business practices and ensuring long-term financial health and environmental stewardship.”

Accountancy & Accounts, Research

Accountants face new era of ethical challenges

New research reveals that top three areas for ethical challenges are leadership, culture and sustainability – and that ethical dilemmas are becoming more complex

Professional accountants, long trusted as custodians of financial integrity, are facing a new era of ethical challenges amid a rise in business scandals and evolving expectations. 64% of respondents said that ethical dilemmas have become more difficult to resolve in the past three years.

 

A report from the world’s leading professional accountancy body ACCA (Association of Chartered Certified Accountants) published to mark Global Ethics Day, highlights the evolving nature of ethical challenges and the increasing complexity of ethical dilemmas in accountancy. The new era of ethical challenges for professional accountants is based on over 1,100 responses from 135 countries.

 

The findings reveal that 55% of accountants have witnessed unethical behaviour in their career
and almost one in four (24%) have been put under pressure to behave unethically in the last
three years. In addition, the results revealed that more men have experienced ethical pressure than women: 27% of males have been put under pressure to act in an unethical way, compared with 19% of females.

People were asked to name their top three areas for ethical challenges over the past three years. The top results were:

  • leadership and culture (40%)
  • AI and technology (32% and 26%)
  • sustainability (30%)

 

Globalisation, driven by technology, is facilitating businesses to expand across borders – which in turn creates new ethical challenges emerging due to regional variations including cultural,

legal and economic factors. While the drivers of complexity in ethical dilemmas are broadly

similar globally, the research underscores the importance of considering local factors in

promoting and enforcing ethical behaviour.

 

By contrast, the nature of where we work has also transformed during this time. With people often working remotely, and individually while part of a team, when ethical challenges do arise, they’re potentially resolving them in a different way.

 

The research also highlights key areas for senior leadership to address in the near future. These include: mental health and wellbeing, professional competence and continuous learning, technology and data ethics, ethical leadership and governance, diversity, equity and inclusion and sustainability reporting.

 

Report author, Sarah Lane, head of ethics and assurance at ACCA, said: “These insights
underscore the need for robust ethical leadership and culture in organisations, and ongoing
learning and development to support professional accountants in navigating these challenges in today’s evolving landscape.”

 

Read the full report.

Accountancy & Accounts, Business, Diversity & Inclusion

Embracing neurodiversity brings business benefits, says new ACCA report

  • New report shares stories of individuals who are neurodivergent within the accountancy profession and their experiences
  • Estimates that one in five members of the workforce are neurodivergent indicates a greater need for neuro-inclusive practices in all levels of business

Leading global accountancy body ACCA’s latest report ‘Neurodiversity in accountancy’ explores the growing awareness by employers that those who are neurodivergent have real value to bring to an organisation.

The report highlights targeted hiring programmes that have actively sought out neurodivergent talent to undertake roles.

It is estimated between 15 – 20% (or roughly one in five) of the population are neurodivergent. As a result, organisations have a responsibility to include and support neurodivergent individuals, creating workplace environments where everyone’s challenges are supported and strengths are celebrated, and where neurodivergent individuals can thrive.

The business benefits for organisations that embrace neurodiversity include:

  • Diverse thinking: neurodiversity brings unique viewpoints, problem-solving approaches, fresh ideas and innovative solutions.
  • Increased productivity: accommodations for neurodiverse individuals enhance overall productivity.
  • Talent attraction: focusing on building neuro-inclusive workplaces attracts candidates – especially Gen Z.
  • Talent retention: a neuro-inclusive environment fosters loyalty and reduces turnover.
  • Enhanced creativity: neurodiverse individuals often think ‘outside the box’.
  • Positive workplace culture: Employees feel respected and valued, leading to better morale.

 

The report shares stories of individuals who are neurodivergent within the accountancy profession and ultimately celebrates thinking differently, representing organisations as diverse as accountancy firms EY and Cooper Parry, recruitment firm Michael Page Malaysia, HMRC, and The Ritz London hotel.

Numerous benefits to organisations were cited, from brand recognition and winning new business, to accessing previously untapped talent pools. Bringing innovation, creativity and other valuable skills to the organisation was also recognised as a key benefit. Ultimately, a proactive approach in this area has an impact on creating value for an organisation, both financially and socially.

Report co-author Jamie Lyon, head of skills sectors and technology at ACCA, says: “Supporting neurodivergent employees is essential for creating an inclusive workplace and this doesn’t need to be complex. Often knowing where to start can be the biggest challenge. Organisations can approach neuro-inclusion at both an organisational and individual level. The aim for any organisation should be neuro-inclusive design, where possible adjustments and ways of working are part of standard practice and no longer need to be requested.”

Report co-author Tania Martin, Neuro-inclusion consultant at PegSquared: “With an estimated one in five of the workforce being neurodivergent, and more people willing to openly share their stories, it is becoming even more important that employers are proactive in understanding and building neuro-inclusive workplaces. So often we find what works for one, benefits so many. But broader than that, neurodiversity also impacts employers’ clients and customers. Having an understanding of neuro-inclusion can be a competitive advantage – harnessing neurodiversity is ultimately good for business.”

The research sought to understand the challenges neurodivergent individuals face at work and in education; their strengths; how organisations have implemented support at both the organisation and individual level; and thoughts about the future of neurodiversity at work.

It concludes with key recommendations for organisations to better support their neurodivergent employee community, from leadership buy-in and sponsorship, education and training opportunities, through to inclusive job descriptions and recruitment practices.

Read the report and access the employers’ guide here.

Visit ACCA’s website for more information.

Research

Economic confidence among finance professionals hits highest level since first half of 2023 

  • Although accountants have become more positive about the economy for the first time since Q1 2023, concerns about costs persist   
  • Global concerns about operating costs rose, as did uncertainty around geopolitical tensions and talent acquisition challenges
  • UK SMEs have experienced a similar buoying of confidence, but still face a tough economic landscape to navigate

 

Accountants and finance professionals are more confident in the global economy than they have been since early 2023.

 

The latest ACCA (the Association of Chartered Certified Accountants) and IMA® (Institute of Management Accountants) Global Economic Conditions Survey (GECS) saw a moderate increase in confidence to put the index just above its historical average. Add in small increases to the New Orders and Employment indices – both of which are slightly above their averages – and a positive picture emerges of a gradually improving economic outlook. That said, there was a small decline in the Capital Expenditure Index, which remains below average.

 

Encouragingly, there were gains in confidence in most regions. The rise in Asia Pacific was the third largest on record and may reflect growing confidence in the resilience of the US economy, signs of improvement in the Chinese data and wider global economy, and perhaps rising optimism that Japan may finally be exiting from its decades long battle against deflation. The moderate rise in confidence in Western Europe also suggests that growth may be gradually improving from the weakness of recent quarters.

 

On a less positive note, global concerns about increased operating costs rose, although they remain below their Q3 2022 peak. Interestingly, concerns about costs eased again in the advanced economies of North America and Western Europe while remaining elevated by historical standards. By contrast, cost concerns rose noticeably in Africa, Asia Pacific, and South Asia.

 

Additionally, Q1 2024 responses from the Global Risks Survey section of the GECS report demonstrate how the ripple effects of economic uncertainty have been exacerbated by rising geopolitical and talent scarcity challenges. Respondents across all sectors and regions said that they are feeling the impact of talent retention risks, with numerous respondents describing the skills shortage as an epidemic. Cybersecurity is also viewed as a significant threat, especially with advancements in generative AI making ransomware and other cybercrimes increasingly easier and quicker to carry out.

 

Jonathan Ashworth, chief economist, ACCA, said: “The survey points to some improvement in global growth. Nevertheless, while encouraging, it is no time to celebrate just yet, with the global economy facing many risks and challenges and still set for below average growth in 2024. Moreover, the elevated level of concerns about costs suggests that the major central banks should proceed very cautiously with any monetary easing.”

 

Specifically discussing the economic backdrop for UK SMEs, Glenn Collins, head of technical and strategic engagement, ACCA UK, added: “Confidence among UK SMEs increased quite materially in Q1 2024 and is only moderately below its historical average. The New Orders Index declined but is close to its average. The Capital Expenditure Index increased sharply for the second consecutive quarter and is now just above average, but the Employment Index declined again and looks weak by historical standards.

 

“Overall, the broad trend of the key activity indicators (save employment) over recent quarters points to some improvement in the economic backdrop for UK SMEs. Nevertheless, some of the early indicators of corporate stress increased in Q1. Worryingly, problems securing prompt payment, problems accessing finance, and concerns about customers going out of business all rose and are above their historical averages. This does highlight that businesses need to review their finance plans.”

 

Susie Duong, senior director of research and thought leadership at IMA, said of the report: “The continued improvement in confidence in North America, and the rise in the other indicators, likely reflects growing optimism that the US economy is on course for a ‘soft landing’ or perhaps no landing at all in 2024. That would clearly be welcome news for businesses, although it means we are likely to see less monetary easing by the Federal Reserve this year than investors expected a few months ago.”

 

Read the full report here.

 

Visit ACCA’s website for more information.

Economy & Jobs News, Finance News, Wales

Global economy set for slow growth, high uncertainty for 2024, says ACCA chief economist

  • ACCA’s review of the current global economy suggests 2024 will be beset with risks and challenges
  • Slow growth, geopolitical risks, lagged impact of monetary tightening in 2023 and businesses approaching with caution are likely to shape

 

 

An inaugural annual economic prospects report by ACCA examines the outlook and major risks for the global economy and key countries. The report, 2024 Global Economic Outlook: Slow Growth High Uncertainty, sets out the key events to watch in a year packed with elections; examines three trends to watch closely; and interviews chief financial officers (CFOs) from across the globe.

 

Jonathan Ashworth, chief economist at ACCA and author of the report, said: “The global economy looks set to grow slowly once again in 2024, and the risks are skewed to the downside. The lagged impact of past monetary tightening could lead to an even more pronounced slowing in growth, and geopolitical risks remain very heightened. The busy political calendar, with elections scheduled in around 60 countries, including the US, the UK, India, and the European Parliament, adds a sizable extra degree of uncertainty and potential volatility.”

 

Ashworth added: “It could be risky for central banks to declare imminent victory in their battles against inflation” but suggested that: “Upside risks to the global economy in 2024 could perhaps come from continued rapid improvements on the inflation front, which could pave the way for quite an early and significant easing of monetary policy by central banks.”

 

But he warned that “this could risk sowing the seeds of higher inflation in 2025 and beyond.”

 

In addition to monitoring the usual ebb and flow of economic data, Ashworth suggested watching three key trends this year:

 

  • Further backsliding by governments on policies to achieve the green transition
  • Signs of rising geo-economic fragmentation
  • Developments with artificial intelligence (AI).

 

Ashworth said: “The first two could be particularly impacted by political developments through the year, and we will be watching for early signs that wider AI adoption is beginning to provide a much-needed boost to productivity growth in economies.”

 

Meanwhile, caution was the watch word from CFOs given the challenging global economic backdrop and the geopolitical developments and elections in many countries. Some businesses were naturally less impacted by cyclical economic developments, but a number were impacted by, or at risk from, structural changes related to trade, and supply chain issues. Most were experimenting with AI and other technologies in their businesses, while some noted the difficulty in attracting talent given the changing ways of working.

 

Read the full report here.

 

Please visit ACCA’s website for more information.

News

The rising cost of running a business forces more companies to think flexibly

• Two-thirds (67%) of UK businesses believe offering flexibility is crucial when it comes to competing for people with the most sought-after skills
• Half (49%) of businesses saying they have been operating in ‘a candidate’s market’ – one that favours candidates over companies
• Over half (52%) of businesses have increased salaries but can’t afford to keep raising wages at the rate they have been going

Two in three (67%) UK businesses believe offering flexibility to their workers is crucial if they are to successfully retain and attract talent, according to a new report published today.

Businesses realise they cannot compete on salary alone and instead offering flexibility is key to helping companies manage the rising costs of running their businesses. Over half (52%) of businesses have increased salaries to attract talented workers, but say wages rises can’t continue at the rate they have been going.

The second ‘Future World of Work’ report from Sonovate explores what flexibility means to businesses and workers throughout the UK, and how businesses are employing flexibility to remain competitive in what’s been a candidate’s market during 2022. It brings together quantitative research from 4,000 people and 500 small and medium-sized business owners, as well as qualitative interviews with senior thought leaders from the future of work, employment and fintech sectors.

With half (49%) of businesses saying they have been operating in ‘a candidate’s market’ – one that favours candidates over companies – businesses are having to think more creatively about what flexible benefits they can offer to attract, retain and reward their workers. Seven in ten (70%) businesses surveyed say the most skilled people know their worth and will only work under conditions that suit them.

The use of flexibility extends also to retaining the best people already working in permanent positions. Over a third (35%) of businesses report an increase in the proportion of their permanent workforce requesting to switch to contract or temporary roles.

Offering greater flexibility is practical for many businesses from financial and operational, as well as recruitment, perspectives. The report finds that businesses are increasingly turning to different forms of flexibility to attract and retain staff, particularly where it isn’t feasible to compete on salaries in a high inflation, recessionary market. More than four in ten (43%) businesses have raised wages for talent but say they cannot afford these inflated salaries for long.

The forms of flexible working most favoured by the UK’s businesses include allowing workers to choose their own hours (58%), accepting requests to move from permanent to temporary contracts (58%), and providing employees with utilities and internet subsidies to work from home (also 58%). Other popular options amongst businesses include enabling workers to choose which, or how many, days they work (56%), and enforcing a partial work from home policy (54%).

These broadly tally with the desires and expectations of workers. Sonovate’s research finds that 30% of freelance workers want to choose their own hours, as well as how many and which days they work. Three in ten (27%) want to be able to work part time if they wish to, and 25% are keen to work from home when they want to.

Richard Prime, Co-Founder & Co-CEO of Sonovate, comments on the findings: “As the cost of living crisis deepens and creates new dynamics and expectations, our understanding of what flexibility means and how it works is fast evolving. Flexibility goes far beyond where and when people work; it encompasses policies that let workers move between permanent and temporary contracts, wider benefit packages for longer-term contractors to match their permanent colleagues, and the right technology to enable flexible working and prompt pay.

“The reality we’re seeing on the ground puts paid to the suggestion that a cost of living crisis or high inflation environment will stem the tide of workers requesting or even demanding greater flexibility from the businesses they work for. The future of work is transforming month to month right in front of us. Macro market events that we might think would hinder the shift to a new world of work are instead accelerating and shaping working habits in fascinating ways.

“For many businesses, 2022 was the year of the candidate’s market; it remains to be seen whether that will continue into 2023. Either way, if 2023 heralds greater growth, lower inflation and more stability, it’ll be fascinating to see how flexibility extends its reach further and forces more businesses to think creatively about how they attract, recruit and retain.”

 

News

Node4’s Report Reveals Five Reasons Why UK Businesses Are Removing Workloads From Public Cloud Platforms

Cloud-led digital transformation Managed Services Provider (MSP) Node4, has released its Future of Hybrid Cloud report. Based on independent research, it finds UK IT managers have a generally positive view of public cloud platforms. They identified improved security posture, a greener and more sustainable IT infrastructure, more efficient IT team operations and less downtime as principal advantages. However, half of respondents said that, despite these benefits, they have had to migrate a workload back off a public cloud platform — and called out several potential shortcomings that could be behind this trend:

 

  • 56% said their public cloud environment was more expensive to operate than initially forecast.

  • 22% identified service issues or capacity constraints

  • 21% reported a lack of control around usage and access

  • 21% cited performance issues

  • 17% experienced workload incompatibility

 

The report’s findings suggest that these factors are also contributing to the retention or increase in non-cloud IT infrastructure. Indeed, 41% of UK organisations using public cloud still have applications and workloads running on company-owned hardware — and 37% rely on a platform provided by a hosting company.

 

Looking to the future, the country’s IT managers think they will still be running applications on company-owned hardware (44%) and using a platform provided by a hosting company (42%) in three years. Just 12% of respondents expect to host more than 75% of applications and workloads in a public cloud environment. This makes a more formalised long-term hybrid cloud usage strategy a likely scenario for most UK businesses.

 

When asked why they’re considering a hybrid cloud strategy, nearly half (46%) of respondents said it was to retain existing infrastructure and assets. The same number (46%) said they would adopt hybrid cloud to support applications that don’t suit public cloud. Over a third said it would help them tackle latency, edge, and performance issues they’d experienced with public cloud. Respondents do, however, have a few concerns about hybrid cloud adoption, citing the need to support multiple platforms (39%) and the complexity of integrating multiple platforms (36%).

 

Commenting on the report and its findings, Andrew Slater, Practice Director – Cloud at Node4, says: “Our research underscores that many UK organisations have encountered challenges in getting the final 20-30% of their production workloads into public cloud environments. This is probably not what they envisaged when they began their public cloud adoption journey. IT departments were working on a vision where all workloads sat neatly within a public cloud environment, delivering significant cost savings — and that all security, compliance, monitoring, updates, backup, and disaster recovery could be centrally managed. But as our research demonstrates, things don’t always work out exactly as anticipated for many organisations.”

 

Andrew continues: “We have seen the emergence of a new hybrid cloud model where organisations bring the public cloud providers’ software into their controlled IT environments. Tools such as Azure Stack HCI and Azure Arc meet the core challenges of operating a hybrid cloud model head-on, providing centralised management, compliance, and security alongside the ability to run PaaS services outside of the public cloud.  While respondents identified potential barriers to longer-term hybrid cloud adoption, we’re confident that these can be overcome with developing hybrid cloud technologies. This would deliver a cost-effective, long-term strategy for UK businesses to manage their IT infrastructure without worrying about migrating incompatible or inappropriate workloads to public cloud environments.”

 

To download a full copy of the report, please visit www.node4.co.uk/resource/hybrid-cloud-report.