Today in health, it 10 ways inflation will impact it. My name is bill Russell. I'm a former CIO for a 16 hospital system. And creative this week health instead of channels, dedicated to keeping health it staff current and engaged. We want to thank our show sponsors who are investing in developing the next generation of health leaders.

Gordian dynamics, Quill health tau site nuance, Canon medical, current health. Check them out at this week. health.com/today. All right, pull this article up very interesting. 10 ways inflation will impact it. This is cio.com. As inflation rises across the globe. CEO's are strategizing ways to navigate rising prices for it. Supplies, services, and talent by rethinking it portfolios, reprioritizing it spend and honing business efficiencies.

So let's take a look at this. , this is Bob Johnson keeps careful watch on the world's economic situation. Whenever there is an ill wind, anywhere in the world, it affects us. It says Johnson, CIO of the American university of Paris. , It's not surprising then that he's already feeling the impact of inflation with costs going up. Johnson says he's concerned his it budget. Won't cover all the work.

That it is meant to fund. All right. So let's take a look at what the 10 things are real quick. So number one, economic talk. Not exactly sure what that is. Let me see. According to the 2022 CEO survey. From the conference book, inflation ranks. Second on the list of issues, worrying chief executives.

Just after the ongoing impact of the pandemic in 2021 inflation ranked 22nd. All right. So in 2021, inflation was 22nd. And now it's number two. So I think essentially what they're saying here is there's going to be a lot of talk about inflation. Number two, increasing labor costs. Think we're already feeling this one demand for tech talent remains high comp Tia.

And nonprofit association for the it industry Canada, more than 443,000 employee job postings for tech positions. In the U S in April, bringing the total to 1.6 million so far in 2022, that's a 40% increase in us tech positions over the same period in 2021. All right. So there are more demand for labor and less labor out there. So the cost of labor is going to go up. Let's see what number three is rising contract costs.

CEO's , certainly aren't the only ones facing staffing shortages and corresponding rising costs of hiring and retaining talent. Managed service providers and tech vendors are feeling the pinch as well. They are seeing higher costs in other areas as well. And so they're now starting to push through price increases to CEO's. He added Johnson can attest to that. He says he has seen contract costs.

Trending upward, noting that one software as a service vendor proposed a contract with a 25% increase over the last year's pricing. All right, so your contracts got to keep an eye on contracts. See what they are tied to in terms of the price increases. Number four few, if any places for cost refuge CEO's have traditionally used offshoring to help keep labor costs in check.

But with today's inflation being worldwide CEO's are finding that approach ineffective. Says Emily, Louis, Pinel vice-president and a cloud practice leader for NTT data services at global it consulting firm. For example, Louis Pinel says she is seeing salaries in India, as well as established hubs for companies providing it services to the us.

And other countries doubling, even tripling. Wow. All right. So no refuge anywhere. Number five more fiscal discipline. Although CEO's are hardly known for being spendthrifts. Villar says inflation as CIO is paying even closer attention. To where their dollars are going yet, you're going to have to be an expert on the dollars and cents of running health. It.

And those who can't keep it disciplined and under wraps. Are going to find themselves in very difficult conversations with the executive team. Number six, even higher bills down the road due to backlogs. It is an immune to today's supply chain issues. I, in fact, I'm hearing some crazy stories about supply chain issues, kind of wild.

As CIO say they're facing significantly longer delivery times for standard enterprise tech products, such as workstations and servers that in turn has CIO is planning to pay more. CEOs are saying that it's not affecting us now, but they look into 2023 and four they're thinking inflation and a backlog will affect prices.

I agree with that. A thousand percent prices for computers, switches routers you name it. It's all going up. Number seven premium prices to get needed products right away. I'm seeing this as well as we're seeing supply chain shortages. There are projects that can slow down for whatever reason. And there is a premium being paid for those products.

Number eight focus on efficiencies as well as innovation. Looking to guard against inflation as best they can. Executives are looking for ways to cut costs and they're looking to CEO's. To find ways to use technology to do so. That's a trend that hasn't been seen in a big way since the last recession.

All right. I believe this is really true. We've been talking about innovation, innovation, innovation for a long time. And I think the next two years, we're going to be talking about. , efficiencies using technology for efficiencies. And so you're gonna look at automation, robotic process automation. ,

, streamlining workflows within the healthcare. , ecosystem so forth and so on. Number nine more tech investments. Oh, that's an interesting one. Similarly, some CEO's are accelerating it initiatives. To help their organizations cope with rising costs. Loose Manel says she expects more CIS to be pushing up the timeline on transformative projects, such as those using analytics, machine learning and automation.

Which is, what would you said. That can bring efficiencies and Bruce boost productivity. I think that is true. I'm not sure I would have worded as more tech investments. I would have said more investment in efficiency projects. Number 10, demand management. Giving all the ways inflation along with the supply chain disruptions, the continuing pandemic and possibility of recession.

It's hitting it and business in general CEOs and their C-suite colleagues are beginning to reevaluate initiatives to ensure that they still make sense, whether they're still appropriately prioritized. It's interesting. We had an evaluation. , Process for our projects. We had 110 projects. Going on at any given time. The last one we did, we had about 110 projects.

As CIO at St. Joe's and, , each one of the project managers came in and one of the lines on there was what was the original. , objective for this project. And, , and oftentimes we would ask, do we still have that objective and you know, a handful of times. The objective went away. And a lot of times those projects still continue when you have large systems and lots of projects.

And we started shutting down projects and it was interesting how people would fight. They're like, nah, you got to finish. It's like to what end this is what it was designed for. If there's another reason we should do it, we should update. The objective for the project. So a very interesting. , Series of things going on 10 ways, inflation will impact.

It inflation's going to impact all of us. It's going to impact us. At, in our homes, it's going to impact it. It's going to impact us at work. For sure. Inflation is not a good thing. The last time we experienced it last time I experienced it in my lifetime. , it was a, a pretty. , Is serious event.

For all families and all businesses. So I'm keeping an eye on that one, always keeping on that one. That's all for today. If you know someone that might benefit from our channel, please forward them a note. They can scribe on our website this week. Dot com. Or wherever you listen to podcasts, apple, Google, overcast, Spotify, Stitcher.