IT budget growth muted amid demand uncertainty

• Indian IT firms witness weak client sentiment

- URVI MALVANIA

GLOBAL ENTERPRISES ARE set for a lean year in technology spending, with IT budgets projected to rise just 1.8% in 2025, according to ISG's IT budgets and spending study. The muted outlook reflects the same macroeconomic uncertainties that Indian IT companies have flagged in recent quarters—cautious client sentiment, deferred projects, and reduced discretionary spending.

"Averaged, respondents estimated their organizations spent 5.7% ($742M) of total revenue on IT solutions, services and staffing in 2024 globally. On average, enterprises estimate 2025's total IT budget change at 1.8%," the report stated. ISG is a global technology research and advisory firm headquartered in the US.