HFS Pulse Outlook for Travel, Hospitality and Logistics

HFS’ latest installment of Pulse data is here! Our Pulse series is designed to provide recurring state-of-the-market updates on IT and services trends and investments to help enterprises and providers make informed decisions. Here is our outlook for the THL industry. 2024 will be the year of AI-led technology arbitrage with a lumpy spending rebound.

1. IT spending shows a welcome rebound across industries, but expect shorter contract lengths, heightened expectations for ROI, and major transformation initiatives chunked up into component parts. And IT no longer writes the checks, so ensure targeted offerings for the C-Suite and LOB leaders.
2. HFS research shows 2024 will bring modest growth in labor-centric IT and business process services spending. AI-led technology spending is emerging as the growth engine of 2024—expected to drive significant investment. This is the rise of technology arbitrage. It will force a new S-curve of AI-driven value creation. Service providers have an opportunity to help drive AI maturity in 2024 and beyond.
3. Expect a keen, continued focus on bottom-line impact, doing more with less. Generative AI leads emerging tech investments with no silver bullet for growth. IT services favor IT operations, IT architecture, and quality assurance with cybersecurity and cloud transformation for growth. BPO spend has a growing focus on supply chain.

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