CTRM Costs Rising
Talking with several folk this new year one thing that is readily apparent is that the cost of building, implementing and supporting CTRM software is going up rapidly along with almost everything else. Inflation is back and posting records almost everywhere. Several vendors complain about unfilled vacancies while others talk about salary expectations that simply cannot be met. The same of course, applies to users who need support staff to help maintain their software internally.
In the UK, inflation reached a 10-year high in November at 4.6% according to the Office for National Statistics. Employment was up 0.2% to 75.5% yet job vacancies rose to a new record of 1,219,000 and 13 of 18 industrial sectors now have record vacancy rates. The annual growth in pay was also 4.9% and the number of hours worked per employee was also rising. Meanwhile, the US just posted horrendous inflation numbers at 7%, the fastest rate of increase in 40-years. With 12-month energy costs rising by 30% and wages by 9.77% in October 2021, inflationary pressures seem in place to continue to drive numbers higher. In fact, the OECD says that among 30 industrialized countries, inflation is at its highest in 25-years.
Figure 1 – US Wages & Salaries
source: tradingeconomics.com
Those looking for lower cost outsourced employees are also expressing dismay as salaries rise exponentially in places like India which historically have been low cost. In December, Indian retail inflation was almost 6% and salaries were rising by 8% on a median basis in 2021 and are projected to climb by almost 10% in 2022.
Experienced people are hard to find and expensive and even green hires from outside the industry are asking for high salaries according to sources I spoke with this week. Expect your CTRM software and services to cost more this year!
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