The landscape for IT spending and workforce dynamics is rapidly evolving as organizations prepare for 2025. A significant shift in IT spending is expected, driven by increased security concerns and the need for technological upgrades.
According to a recent survey conducted by Spiceworks and Aberdeen Strategy and Research, nearly two-thirds of companies plan to increase their IT budgets, with only a small fraction intending to decrease spending. This marks a notable change from previous years as businesses aim to address challenges and invest in new initiatives.
The survey also reveals that 54% of companies are particularly focused on increasing their investments in generative AI technologies, reflecting the growing importance of AI in the tech landscape.
The primary motivator for this budget growth is heightened security concerns, with 53% of organizations citing this as a key factor. Other contributing factors include the need to update infrastructure, employee growth, and inflation, each influencing 45% of organizations' spending decisions.
As companies navigate these challenges, they are also looking to enhance efficiencies through strategic cost-cutting measures, such as decommissioning unnecessary infrastructure and re-evaluating vendor contracts.
There is a significant disparity between IT staff and senior management perspectives on technology spending. While 54% of IT professionals believe their companies are under-investing in technology, many hiring managers feel that spending is adequate or even excessive. This disconnect highlights a broader issue within organizations, where IT staff express concerns about wages not keeping pace with the cost of living and the pressure to do more with fewer resources.
The report emphasizes the importance of leadership listening to their teams, as IT professionals possess valuable insights into which technologies warrant investment.
Younger IT professionals, particularly those from the Millennial and Gen Z cohorts, exhibit skepticism towards the value of AI, with over a third of IT managers planning to seek new employment in 2025. This sentiment is particularly pronounced among those born in 1997 or later, with 53% indicating intentions to change jobs, compared to 42% of Millennials and 32% of Gen X. The fear of being replaced by AI technologies contributes to this hesitancy, suggesting that organizations must address these concerns to retain talent and foster a more engaged workforce.
Despite the increasing emphasis on cybersecurity, there is a significant skills gap within the IT workforce. While 90% of respondents recognize cybersecurity as a critical skill, only 63% express high confidence in their security knowledge. This gap is particularly concerning as organizations ramp up their investments in security solutions, with 52% planning to increase spending in this area.
The demand for expertise in data analysis, scripting, coding, and conflict resolution is also on the rise, yet many potential candidates lack the necessary confidence in these in-demand skills.
Looking ahead, IT departments are expected to prioritize investments in technologies that enhance operational efficiency and address emerging risks. Automation technologies are viewed as particularly valuable, with 76% of respondents identifying them as the best investment for their money. Additionally, gigabit Wi-Fi and edge computing are gaining traction, with 72% and 68% of respondents, respectively, recognizing their worth. Even blockchain technology is receiving attention, with 64% of professionals seeing its potential benefits.
As organizations prepare for the end of Windows 10 support in October 2025, there is a notable increase in laptop spending, with 47% of companies planning to invest in new devices. This shift is driven by the aging infrastructure that supported remote work during the pandemic, necessitating upgrades to maintain productivity.
The focus on IT automation and strategic investments reflects a broader trend of organizations seeking to leverage technology to navigate an increasingly complex business environment.
In summary, organizations are preparing for 2025 by addressing security concerns, bridging skills gaps, and investing in essential technologies. The insights from IT professionals will be crucial in guiding these investments and ensuring that businesses remain agile and responsive to the challenges ahead.