IT Spending Trends for 2025

IT Spending Trends for 2025: The Growing Importance of Governance

As we embark on 2025, the trajectory of IT spending continues to evolve, with a sharp focus on alignment, efficiency, and accountability. In an increasingly complex and fast-paced business environment, organisations are recognising the need for a more strategic approach to IT investments. One trend stands out among others: the critical role of IT governance in shaping how, where, and why organisations allocate their IT budgets.

Here are the key trends we expect to see around IT spend this year, particularly in relation to governance.

Governance as the Cornerstone of IT Investments

IT governance will become more than just a support mechanism—it will act as a strategic enabler of smarter spending. Organisations are moving away from siloed decision-making and towards a more centralised governance model that integrates IT with business strategy, risk management, and operations.

Key drivers:

• The need for cost transparency: Organisations will prioritise tracking and justifying every IT expense, ensuring alignment with business goals.
• Enhanced decision-making through data-driven governance frameworks: Accurate, unbiased data will play a central role in developing strong business cases.

By embedding governance into their IT spending strategies, businesses can ensure investments deliver measurable value.

Increased Spending on Risk Management and Compliance

As IT environments grow more complex, so do the associated risks. From cybersecurity threats to regulatory compliance, organisations are under pressure to proactively identify, prioritise, and mitigate risks.

Governance will guide IT investments towards:

• Legacy system modernisation to reduce vulnerabilities.
• Comprehensive risk assessments as part of the business case process.
• Investments in automation and monitoring tools to manage risks in real time.

This risk-focused spending will help organisations stay agile and resilient while reducing the likelihood of costly disruptions.

Modernising Legacy Systems: A Governance-Driven Approach

In 2025, legacy systems will continue to drain IT budgets if not carefully managed. Governance frameworks will help organisations prioritise modernisation efforts by evaluating:

• Total cost of ownership (TCO), including maintenance, hosting, and decommissioning.
• Strategic alignment with organisational goals.
• Risks posed by outdated systems, such as security vulnerabilities and inefficiencies.

With governance driving these decisions, businesses will move from reactive fixes to proactive, long-term strategies.

Balancing Strategic and Tactical IT Investments

Governance will be essential in striking a balance between tactical projects and long-term strategic initiatives. While tactical investments address immediate needs, they often lack scalability or alignment with overarching goals.

IT governance can bridge this gap by ensuring:

• Portfolio management reflects both short-term and long-term objectives.
• Business cases are rooted in measurable outcomes that align with corporate strategy.
• IT spend is continually assessed and optimised to adapt to changing needs.

This balanced approach will help organisations allocate resources effectively without compromising innovation.

ESG (Environmental, Social, and Governance) Integration into IT Spending

Environmental sustainability is no longer optional. In 2025, we expect to see governance frameworks integrating ESG principles into IT investment decisions.

Key areas of focus:

• Reducing energy consumption through cloud migrations and sustainable infrastructure.
• Investing in sustainable technologies and reducing e-waste.
• Ensuring IT aligns with broader ESG goals, such as diversity, accessibility, and compliance with ethical standards.

By incorporating ESG into governance, organisations can demonstrate responsibility while unlocking new opportunities for growth and innovation.

The Role of AI and Automation in Governance

As artificial intelligence (AI) and automation tools continue to mature, they will increasingly be used to streamline IT governance processes. These technologies will enable organisations to:

• Automate cost analysis and reporting, improving accuracy and efficiency.
• Ingest and analyse finance data on the fly, enhancing real-time IT investment and risk monitoring.
• Provide predictive insights into future IT needs, helping to refine budget planning.

AI-driven governance tools will not only reduce manual overhead but also help businesses make faster, smarter decisions.

Growing Demand for IT Skills and Capacity Planning

Governance frameworks will also address one of the most critical aspects of IT spending: people. Organisations are grappling with a global talent shortage, particularly in areas like cybersecurity, cloud computing, and AI.

Governance will play a pivotal role in:

• Forecasting workforce needs, ensuring IT budgets account for talent acquisition and upskilling.
• Balancing investments in technology with investments in human capital.
• Creating frameworks for sustainable workforce planning.

By aligning IT spend with talent strategies, businesses can build the capacity needed to support long-term growth.

Conclusion: Governance as a Transformative Force

The IT spending landscape in 2025 will demand more accountability, transparency, and strategic alignment than ever before. Organisations that integrate governance into their IT budgeting processes will be better equipped to navigate complexity, drive innovation, and deliver measurable value.

At CoPerceptuo, we believe that strong IT governance is no longer a “nice-to-have”—it’s a competitive necessity. By aligning IT investments with business goals, managing risks effectively, and fostering collaboration across functions, governance will empower organisations to achieve more with their IT spend in 2025 and beyond.

If you're thinking about how to optimise your IT spend and improve governance book a call and see how we can help you