Stop Pretending You’re Google And Start Winning Tech Talent

In a year when companies slashed $144 billion from their tech spending, a mid-sized manufacturing CEO leaned back in his chair during our recent consulting session, clearly frustrated. "I don't get it," he sighed. "We've increased our IT budget by 7% this year, hired eleven developers, and I still have the CTO telling me we're falling behind digitally. How is that possible?"

The answer lies in a fundamental truth that's reshaping the business landscape: throwing money at technology doesn't make you tech-driven. In fact, most companies are fighting against their own tech identity – and losing billions in the process.

"Here's the thing about IT budgets," explains Victor Savoska, a veteran CTO with 20 years of experience. "Everyone's increasing them, but not everyone's getting the same returns. It's like giving everyone the same amount of money to invest – some will build wealth, others will just have expensive hobbies."

The numbers back this up. While forecasts suggested a 9.7% growth in tech spending for 2024, the actual projection has settled at 6.8%. That's not just a statistical adjustment – it represents over $144 billion in cut costs. Companies are finally realizing that throwing money at technology doesn't automatically make them tech-driven.

"It's like buying a Ferrari and thinking that makes you a race car driver," chuckles Savoska. "The car helps, but it's really about how you drive it."

"I was on a call last week with one of our clients," shares Savoska, "and someone slapped Forrester's 2025 Budget Planning Guide on the table like it was the holy grail. '7% increase minimum,' they said. 'That's what everyone's doing.'"

Savoska paused for effect. "I asked him if he'd also jump off a bridge if Forrester recommended it."

The numbers are indeed striking: an overwhelming 91% of technology decision-makers are planning to increase their IT budgets for the next fiscal year. Even more telling, 71% are specifically earmarking funds for increased staffing and personnel investments.

"But here's the plot twist," explains Savoska. "It's not about matching the percentage – it's about understanding why you're spending it. I've seen companies get better results from a strategic 5% increase than others get from throwing 10% at the wall and hoping something sticks."

There's another factor at play: IT service costs are steadily climbing, and more companies are turning to outsourcing as a solution. "It's like the housing market," Savoska draws an analogy. "When building and maintaining your own house gets too expensive or complicated, sometimes renting or getting a condo makes more sense. The same goes for IT services."

But should your company follow the 7% increase guideline?

"That's actually the wrong question," Savoska interjects. "The right question is: What kind of technology-driven company are you? Because that determines not just how much you should spend, but how you should spend it."

Through our analysis of hundreds of companies across North America and Europe, we've identified three distinct categories of businesses. Think of it as a "tech personality test" for your organization.

"Think of this quiz as your company's tech blood test," suggests Savoska. "It's not about passing or failing – it's about understanding where you are and what vitamins you might need."

Beyond the numbers, your score reveals your company's technological DNA. There's no universally "right" score. A local coffee shop might thrive as a Tech Pragmatist, while a financial services company scoring the same might be in trouble.

"The biggest mistake I see," concludes Savoska, "is companies trying to be something they're not. Not every business needs to be a Tech Titan. But every business needs to be intentional about where they sit on the spectrum."

Your next steps depend on your score, but they all start with honesty.

⦿ Tech Titans (18 to 24 points):
"These companies don't just use technology – they breathe it," explains Savoska.

These organizations, representing about 9-11% of the market, are true technology pioneers. They're not just using tech; they're creating it, shaping it, and living it.

Recommendation: Scenario A. Continue expanding your internal IT capabilities and collaborate with top service providers to access the best skills and products.

⦿ Tech Pragmatists (8-18 points): Welcome to the largest club in the business world – about 55% of companies fall here. "These are the companies that know exactly what they need technology for, but aren't trying to reinvent the wheel," says Savoska. "They're like people who know how to drive well but don't need to know how to build the car."

Recommendation: Scenario B. Hire a strong CTO/CIO to lead your IT strategy and outsource non-critical functions to efficient service providers.

⦿ The Tech-Starved (0-8 points): "Being tech-starved in 2024 is like trying to run a marathon in flip-flops," quips Savoska. "You can do it, but why would you want to?"

Recommendation: Scenario C is crucial. Partner strategically for digital growth to remain competitive, as legacy systems may hinder your market position.

"Want to know the real reason why being technology-driven matters?" asks Savoska, leaning forward. "It's not just about the technology – it's about the talent that comes with it."

Recent events have dramatically shifted how tech professionals view potential employers. The mass layoffs of 2022-2024 didn't just reshape the talent landscape – they rewrote the rules of attraction.

"It's fascinating," observes Savoska. "Three years ago, everyone wanted to work for the Tech Titans. Now? It’s complicated."

Each category of company now faces unique challenges and opportunities in the talent market:

Tech Titans (18-24 points) "The giants aren't automatically winning the talent war anymore," Savoska explains. "The mass layoffs taught everyone that size doesn't equal security."

Tech Pragmatists (8-18 points) "These companies are having their moment," Savoska notes. "They're the 'Goldilocks zone' for many tech professionals – not too cutting-edge, not too behind."

Tech-Starved Companies (0-8 points) Surprisingly, these companies have a unique appeal. "They're like startup opportunities without the startup risks," Savoska explains.

The days of ping-pong tables and free snacks as talent magnets are over. Today's tech professionals are looking for something more substantial:

1. Purpose Over Perks "I had a client who thought adding a gaming room would attract developers," laughs Savoska. "Meanwhile, their tech stack was from the Stone Age. Guess which one the candidates actually cared about?"

2. Growth Over Glamour Each company type offers different growth paths:

3. Balance Over Burnout "The pandemic changed everything," Savoska reflects. "Now, even the most passionate developers want sustainable pace over constant crunch time."

Key Insight: "Employee satisfaction doesn't consistently correlate with company type," notes Savoska. "We see happy developers in all three categories – it's about matching the right people with the right environment."

Remember our frustrated manufacturing CEO from the beginning? Two months after our initial conversation, we received an interesting email from him.

"You were right," he wrote. "We were trying to be a Tech Titan when we're actually a solid Tech Pragmatist. Once we accepted that, everything changed. We cut our in-house development team to focus on core competencies, partnered with a specialized provider for the rest, and – here's the irony – we're actually moving faster now with a smaller tech budget."

His company scored 14 on our assessment – solidly in the Tech Pragmatist category. Instead of fighting this identity by trying to build a Tech Titan's infrastructure, they embraced it. They focused their 7% budget increase on strategic initiatives that aligned with their business model, rather than trying to compete with Silicon Valley.

"The best part?" his email concluded. "My CTO isn't telling me we're falling behind anymore. Instead, we're having conversations about what technology can do for our business, not what our business can do for technology."

Remember, as Savoska likes to say, "Technology is like democracy – it's not perfect, but it's the best system we've got. The trick is making it work for you, not against you."