84% of UK businesses are encountering challenges because they are using outdated legacy systems, despite the availability of new technology, according to payroll and finance firm MHR.
In its recent Business Resilience Report comprising of 504 senior managers, MHR found that 32% of these organisations are looking to improve their business resilience, yet 12% have not made any “significant” changes to their work processes in the last five years.
Of the firms that have made changes, the report named digital transformation (70%) the top action taken, followed by improved processes (52%), workforce management (52%), and improved access to data (50%).
However, MHR warned that 46% of businesses over 20 years old will not survive the recession declared by the government last week.
“These businesses, that have been serving their customers for 20 years or more, have weathered all manner of challenges in their time, so it is alarming to see that half of them do not believe they will survive the impending recession,” said MHR CEO Anton Roe.
The firm added that businesses must address these issues head on if they want to continue operating.
“Technology will be vitally important if we are to save these businesses and turn around their fortunes – just because a certain way of doing business has worked in the past, is no guarantee it will continue to work in the future.”
In a separate report, 70% of CEO’s said that their network maturity level is stunting business growth.
However, with UK tech spend to grow at its fastest rate in 15 years, it may act as some consolation that businesses are looking to upgrade their outdated technology.
