Strategic Considerations for the 2025 Budget: Key Topics for Business and IT Leaders

As data generation continues to grow exponentially, managing vast volumes of information becomes a critical challenge. The data explosion, driven by digital transactions, IoT devices, and the desire to capture everything, necessitates robust data management strategies. AI-driven analytics have become indispensable in handling this data surge, providing insights that drive business decisions. In 2023, enterprises reported a 40% increase in data volume compared to 2020* and this will only have increased in 2024. Effective data management not only ensures regulatory compliance but also enhances decision-making capabilities, making it a crucial focus for the upcoming budget year.

While cloud services remain integral to our operations, optimising cloud environments for cost and performance is more essential now than ever. The data explosion couple with resource sprawl can easily lead to high consumption costs without continuous optimisation.  It is widely accepted that no one cloud suits all workloads, we see many customers repatriating certain workloads back to on-premise infrastructure for reasons of cost, performance, compliance and data sovereignty. 83% of enterprise CIOs in Barclays survey plan to repatriate at least some workloads during 2024. This hybrid approach balances cloud flexibility with on-premise control. Budget considerations for 2025 should include investments in cloud optimisation tools and strategies, as well as evaluating which workloads could benefit from being brought back to data centre.

Automation continues to revolution business processes, driving efficiency, and reducing operational costs. From robotic process automation (RPA) to AI-driven workflows, the push towards automating repetitive tasks is stronger than ever. In 2022, companies that adopted automation technologies reported a 20-25% improvement in operational efficiency. Furthermore, a study by PwC highlights that organisations employing automation alongside data analytics can increase productivity by up to 40% **. As we approach the new budget year, allocating resources towards automation can yield significant long-term benefits.

Effective software asset management (SAM) is essential for controlling costs and ensuring compliance. With the proliferation of software subscriptions and licenses, tracking and optimising software usage has become increasingly complex. In software asset assessments recently performed by Deloitte, companies had unrealised cost savings totalling 25 percent of their annual maintenance spend.*** For the 2025 budget, investing in SAM tools and processes will help in maximising the value of software investments and avoiding unnecessary expenditures.

The evolving threat landscape necessitates a robust security strategy. The Zero Trust model, which assumes no entity—inside or outside the network—is trustworthy, should still be the goal for organisations. Additionally, AI-powered security tools are becoming indispensable in identifying and mitigating threats. Platform consolidation, by integrating or simplifying multiple security solutions into a unified platform, enhances efficiency and reduces complexity. In 2024, over 30% of respondents from a global survey reported having already implemented a zero trust strategy, while 27% were planning to implement it within the next six months. ****. Budgeting for these advanced security measures is vital for safeguarding organisational assets in 2025.

The question of how much organisational IT to deliver using internal resources is ever present.  Outsourcing IT services can provide cost efficiencies and easy access to specialised expertise, and free up internal staff to deliver the more business specific projects. The trend towards outsourcing non-core IT functions has continued to rise, with organisations reporting an average cost reduction of 15%, but could be up to 60%*****. For the upcoming budget year, re-evaluating which IT services could be outsourced may help in optimising operational expenditures while maintaining high service levels.

The shift towards hybrid work models continues to present unique challenges and opportunities.  Most businesses now have some form of balanced approach that means effective collaboration in meetings and team work requires seamless technology and a frictionless experience no matter the location. 65% of global workplaces have adopted a hybrid work model as of 2023, up from 50% in 2020******, highlighting the need for infrastructure that supports this flexibility. Budget considerations should include technology investments that enhance both remote and in-office productivity.

Sustainability is increasingly becoming a corporate priority. From reducing carbon footprints to implementing green IT practices, businesses are focusing on sustainable growth. When asked to rank the issues most pressing to their organisations, many CxOs rated climate change as a “top three issue.” Some 75% said their organisations have increased their sustainability investments over the past year, nearly 20% of whom say they’ve increased investments significantly*******. For the 2025 budget, incorporating sustainability goals for IT (some of the above topics will contribute) will not only contribute to environmental responsibility but also enhance corporate reputation and compliance.

In conclusion, as we prepare for the new budget year, for me these topics highlight the critical areas that require strategic focus and investment. By addressing these key issues, organisations can navigate the complexities of the modern business landscape and they will contribute to  sustained growth and success.