Improvement observed in businesses as of 2026, according to study findings
In the heart of Europe, businesses in Germany, Austria, and Switzerland (DACH region) are navigating the economic crisis with a strategic blend of cost optimization and digital transformation. The ERA Group, serving over 3,500 clients across various sectors, plays a significant role in this journey.
Matthias Droste, DACH Country Manager of the ERA Group, foresees the crisis as a potential digitalization boost in retrospect. Companies in the DACH region are indeed embracing digitalization strategies to weather the storm.
Cost Optimization: A Key Strategy
The IT sector is undergoing a transformation, moving from a cost-centre to a strategic role within companies. This shift is evident in the widespread adoption of cost-cutting measures, with over half of IT departments affected and a quarter seeing reduced budgets.
Companies are implementing activity-based budgeting, enterprise-wide cost governance frameworks, and continuous cost-saving measures, generating up to 20% cost reductions, particularly in industrial sectors. Efficiency is also being increased through professionalizing sourcing, with offshoring and nearshoring strategies gaining traction in countries like India, Austria, Switzerland, Bulgaria, Spain, and Portugal.
Digitalization Strategies: The Future of Business
Digitalization is not just a buzzword but a necessity for businesses in the DACH region. The adoption of composable ERP systems on platforms like SAP Business Technology Platform enables flexible, AI-enhanced processes, reducing operational costs and increasing IT-business alignment.
Banks and financial institutions are advancing cloud-based transformations, focusing on hybrid cloud environments for scalability and cost flexibility. Digital marketing agencies are also adopting transparency-focused approaches, enhancing Return on Investment (ROI) via data-driven campaign structures that align with measurable business goals like Cost-Per-Acquisition and Return on Ad Spend.
Automation and self-service capabilities are improving operational efficiency and customer experience, as evidenced by Alior Bank's automation of post-sales services, which has reduced manual interventions by nearly half.
Looking Ahead to Recovery
While explicit recovery forecasts are not detailed, available information suggests an expectation of stabilization and growth beyond cost-cutting phases. Continuous cost-control and digital adoption efforts indicate optimism for improved financial performance and operational resilience by 2026 or soon after. Investments in cloud technologies and AI-driven digital tools signal a transition towards higher efficiency, supporting medium-term recovery expectations.
In summary, companies in the DACH region are combining targeted cost-cutting with advanced digital transformation, emphasizing flexible ERP systems, cloud adoption, automation, and transparent digital marketing, as core strategies to navigate the economic crisis and position themselves for recovery by around 2026.
For more information about the ERA Group, visit www.eragroup.com. The original content by the ERA Group was transmitted through news aktuell.
- In the context of the economic crisis, businesses in the DACH region are merging cost optimization strategies, such as activity-based budgeting and offshoring, with digital transformation, like adopting composable ERP systems and cloud-based transformations, to ensure business continuity and prepare for future recovery.
- Financing, business, and industry in the DACH region are seeing transformation, as companies align IT roles as strategic contributors and implement digitalization strategies to drive down operational costs and improve efficiency, with automation and self-service capabilities at the forefront.
