As 2025 gets underway, there's a sense of cautious optimism following the IT market slump of 2024.

Many industry observers are eagerly watching to see what this year will bring. While early signs are positive, there are still areas of the market that remain unstable. Offshoring continues to be a significant concern, with roles that were once considered secure increasingly being outsourced. On top of this, the impact of AI cannot be overlooked. Yet, despite these challenges, there are clear signs of growth, with new programs receiving approval, heavy investments in projects, and exciting developments in the pipeline.

I believe this growth, despite the ongoing offshoring trend, is indicative of the IT sector expanding as a whole. According to a recent report by leading analyst firm Gartner, IT spending in Australia is projected to reach AU$146.85 billion in 2025—an impressive 8.7% increase from the previous year. This surge is being driven by substantial investments in key sectors such as software, IT services, and data centre systems, with a particular emphasis on emerging technologies like generative AI (GenAI) and cybersecurity.

Looking back, 2024 was a year focused on operational improvements, integration, and data. But what can we expect in 2025?

Innovation is set to be the key theme of the year. Many companies spent 2024 reinforcing their internal IT infrastructures, waiting for the opportunity to make significant advancements in 2025. With a strong emphasis on improving data quality in 2024, many businesses are now positioned to take a more strategic approach to AI, unlocking the full potential of their data. Cybersecurity remains a top priority, especially with shifting power dynamics in the US, growing global uncertainties, and the growing number of data breaches in recent years. As a result, businesses are placing greater focus on safeguarding their operations.

The software market is undergoing rapid transformation, becoming increasingly competitive and a key driver of innovation. To stay ahead of the technological curve, more companies are turning to off-the-shelf applications and cloud platforms. These solutions not only offer cost-effective and scalable options but also enable businesses to quickly leverage cutting-edge technologies, streamline operations, and improve overall efficiency. As a result, adopting these platforms has become a strategic move for companies looking to maintain a competitive edge in a fast-paced digital landscape.

While many sectors are tightening their belts, the IT industry is taking a different approach. Australian businesses are recognising technology not as an expense to be cut, but as a critical investment for long-term success. Rather than scaling back, companies are embracing digital advancements to enhance efficiency and secure a competitive edge. This growing focus on digital transformation highlights how businesses are positioning themselves for sustainable growth by adopting innovative technologies that streamline operations and prepare them for future challenges.

Bring on 2025!

Sources:

• https://www.linkedin.com/pulse/according-gartner-australias-sector-poised-investment-pierre-briand-cer4c/
• https://www.gartner.com.au/en/information-technology/insights/top-technology-trends