CFOs facing the big squeeze: Cut costs, ramp investment, says Deloitte

It's not easy being a chief financial officer and they're being squeezed again as they need to cut costs yet continue to invest in new technologies such as cloud and AI, according to Deloitte's latest CFO Signals report.

This squeeze won't be painful as long as technology delivers returns. In theory, enterprises should be able to reinvest productivity savings in a continual loop. We all know the reality turns out to be a bit different.

Here's a look at the moving parts for the 200 CFOs surveyed by Deloitte.

• 52% of CFOs cite cost management as their top internal concern.
• 49% of CFOs say they face pressure to invest in new technologies to drive cost savings.
• 52% of CFOs are redirecting operating expenses to meet cost management goals and 46% say they are redirecting capital expenditures.
• 53% say automation and technology upgrades have been the most helpful in controlling costs.

The timing of Deloitte's survey is also worth noting as it took place in the first two weeks of March just as the war with Iran kicked off. In other words, cost management is the only thing CFOs can control in an uncertain environment. Six months ago, cost containment was the No. 3 priority.

Deloitte’s survey aligns with a PwC report that documents how enterprises get defensive in uncertain environments, but leaders are hellbent on investing in technology and AI anyway.

According to Deloitte, CFOs said the No. 1 internal obstacle to reining in costs was siloed departments and independent business units followed by outdated technology.

Keep those CFO cross currents in mind as companies report earnings from the IT buy side as well as vendors. Enterprises need to see real returns and vendors need to deliver ROI or fade away.