The annual Mobile World Congress trade show, as the name suggests, is normally a telco and handset-driven event, and this year’s event in Barcelona last week was no exception. Even though vendors that we associate with PCs like Intel, AMD, and Dell had on-site booths as well, they were more focused on telco and data center opportunities rather than PCs.

That doesn’t mean that there weren’t significant PC market developments though. Indeed, last year we saw Intel launching the vPro version of its Meteor Lake processors at MWC, and this year we saw vPro for Arrow Lake being unveiled under the Intel Core Ultra (Series 2) name. At first glance this might seem just like an uneventful annual cadence, but we think the industry is underappreciating how significant this development is for moving the PC industry toward on-device AI.

The reality is that many commercial PCs leverage Intel vPro, as well as the AMD equivalent more recently. This is not just because of the product-level features catering to IT departments around manageability and security, but also because PC OEMs like HP, Dell, and Lenovo create commercial PC product lines based on vPro. More than half of the total PC market is driven by the commercial sector rather than consumers, so Intel’s release of the vPro version of its latest processor is key to adoption as a whole. And hey, it has an NPU for on-device AI workloads.

Granted, what businesses will do with those NPUs is still up for debate. Use cases so far have been limited, and delays and confusion around Microsoft Copilot+ PC features haven’t helped either. (Frankly, we think offloading system tray tasks to the NPU for the sake of power efficiency and longer battery life is not talked about enough, but to be honest, it is not the sexiest topic.) Eventually the use cases will come, as long as the other big hurdle of security is assured. In the meantime, NPUs are shipping for software developers to take advantage of, and the installed base of AI PCs is growing. Chicken, meet the egg.

Software, by the way, is where Intel has an advantage. This is in two forms. First, it is in terms of how much Intel has embraced and invested in developers to take advantage of its silicon, with its AI PC Acceleration Program helping ISVs to leverage not just the NPU, but also the GPU and CPU. More significant though is the assurance of existing applications being compatible with its silicon. As much as Qualcomm and Microsoft deserve big credit for getting a significant number of applications natively deployed on ARM (while also offering a well-praised emulator as a workaround), corporate images have deeper system-level software like anti-virus, VPN, remote desktop, backup, and possibly accessory drivers that may not all be ported over yet. And this inertia keeps Intel moving among commercial buyers.

The point either way is that NPUs are shipping, even if these Arrow Lake systems feature a less powerful 13 TOPS NPU compared to competing >40 TOPS parts including not just Intel’s own Lunar Lake platform, but also those from AMD and Qualcomm, the latter of which incidentally can reach much lower price points than Intel. Intel’s new vPro Fleet Services are also encouraging. It is an Intel-hosted SaaS that makes it easier for IT departments without on-premise servers to activate vPro’s Active Management Technology (AMT), which recently garnered huge success stories for organizations who got back on their feet quickly during last year’s Crowdstrike “Blue Friday” incident due to AMT usage. Intel separately launched its Assured Supply Chain program, which is very timely given today’s uncertain geopolitical and tariff-clouded environment.

Speaking of Qualcomm, there were no new Snapdragon X announcements at MWC, but their booth showcased a Lunar Lake-based Surface Laptop for Business alongside one using its own Snapdragon X Elite to illustrate performance differences when unplugged on battery power. It was a message that we’d seen from them already but was now demonstrated live with a fresh Lunar Lake-based Surface Laptop that only just started shipping recently. Qualcomm’s strengths on battery are indeed a competitive advantage that deserves more attention.

Finally, one can’t do justice to talking about PCs at MWC without mentioning Lenovo. Its presence at the show catered to the telco segment via its infrastructure business group as well as its Motorola lineage, but a significant portion of its booth was dedicated to its PCs too. That included not just refreshed Think and Yoga product lines, but also its wide range of concepts, including an outward-folding notebook, secondary-screen attachments, solar-powered backpanels, and 3D screens. Even if they were just concepts, Lenovo got the message out about its ability to innovate.

One item from Lenovo that didn’t seem to get much media coverage but that we were particularly fascinated by was Lenovo’s use of discrete NPUs in peripherals like monitors. In one concept that Lenovo showed, it not only allowed the (motorized) monitor to follow its user’s movements when needed, but more importantly, allowed a non-NPU notebook to use the dNPU in the monitor. It was just a proof of concept, so the ease of developers to access that has yet to be proven. But that NPU installed base nonetheless stands to increase as the industry thinks more in this direction.

The Mobile World Congress (MWC) 2025 in Barcelona has once again served as a barometer for the future direction of the mobile industry. This year’s event, themed “Converge. Connect. Create.”, revealed some technological shifts that will define market dynamics in the coming years.

Two dominant trends emerged in the devices space: rapid integration of AI across devices and the evolution of form factors.

Artificial Intelligence: The Battle for Intelligence Continues

The biggest takeaway from MWC 2025 was the industry-wide push toward AI, particularly on-device AI. Key players showcased their strategies to integrate AI more deeply into their ecosystems:

Honor’s New Corporate Strategy: Honor’s announcement of a $10 billion investment over the next five years to develop AI for its devices indicates a strategic move towards establishing a global AI device ecosystem, encompassing smartphones, PCs, tablets, and wearables. This substantial commitment indicates a broader industry trend of integrating AI to enhance device functionality and user experience.​
OPPO: At the OPPO AI Tech Summit, OPPO reinforced its commitment to AI across productivity, creativity, and imaging. They introduced features like AI Call Translator for real-time call interpretation and AI VoiceScribe for multi-use voice summarization. OPPO also announced deeper collaboration with Google, integrating Google Gemini across native apps like Notes, Calendar and Clock for improved AI functionality. To bolster user privacy, OPPO is implementing Private Computing Cloud with Confidential Computing from Google Cloud for secure data protection in AI features. They also highlighted a partnership with MediaTek to optimize chips for high-efficiency, real-time AI processing, ensuring powerful performance without excessive battery drain. OPPO aims to bring generative AI features to 100 million users by the end of 2025 (doubling its 2024 target of 50 million) and plans to deliver an average of one new AI update per month.
Samsung: Samsung’s emphasis on AI’s role in personalizing user interactions, with 75% of Galaxy device owners utilizing AI features daily, highlights the growing consumer acceptance and demand for intelligent functionalities. Samsung also launched two new devices, the Galaxy A36 and Galaxy A56, aiming to democratize AI by bringing AI features to affordable price points.
Deutsche Telekom AI Phone: In partnership with Perplexity AI, Deutsche Telekom unveiled an AI-centric phone that prioritizes AI interactions over traditional app usage. This “AI Phone” features the Perplexity AI assistant, accessible via voice or a double-tap of the power button, which can perform tasks like real-time translation, booking services, and text summarization.
Newnal AI Phone: South Korean startup Newnal introduced a novel AI phone concept, featuring a unique operating system that creates a personalized AI assistant by analyzing user data like social media activity, medical records, and financial information. This personalized AI aims to streamline tasks such as shopping and email composition, offering a highly customized user experience. The phone runs on a hybrid OS combining Newnal’s system with Android, with a planned global launch on May 1st at a price of $375.
Arm & Stability AI: Arm partnered with Stability AI to develop Stable Audio Open directly on smartphones without an internet connection. They demonstrated a 30x improvement in on-device generative AI for audio, proving that local AI processing is no longer an experimental feature but a necessity. This will allow users to create a professional sound with just a smartphone. This integration enables faster response times for AI-powered features like image recognition and natural language processing, enhancing user experience. While last year the focus was on the camera and content generation, this year we saw AI being expanded to new areas.
Qualcomm: Showcased AI-powered processors designed to improve user experiences without relying on cloud connectivity. Qualcomm made significant strides in 5G and AI with the launch of its Dragonwing FWA Gen 4 Elite Platform, featuring on-device AI-enhanced traffic classification, 40 TOPS Edge AI integration and delivering ultra-fast broadband speeds up to 12.5 Gbps. It also announced the Snapdragon X85 modem-RF, designed for 5G and future smartphones. It achieves record-breaking download speeds of 12.5 Gbps and upload speeds of 3.7 Gbps.
Mediatek: The announcements focused heavily on AI, particularly on how it can enhance the smartphone experience. Their Dimensity 9400 chip utilizes AI for improved photography and videography features, including AI-powered portrait mode, low-light photography enhancements, and AI-enhanced zoom capabilities. They also showcased generative AI applications for smartphones, like creating moving portraits from still images.

Smartphones: Evolution in Design and Functionality

The smartphone announcements at MWC 2025 indicate a strategic focus on design innovation and enhanced functionalities.

Xiaomi‘s introduction of the 15 Ultra, featuring a 200MP periscope telephoto lens with 4.3x optical zoom, demonstrates the industry’s commitment to advancing mobile photography capabilities. This development reflects a broader strategy to differentiate products through superior camera technology, catering to the growing consumer interest in high-quality imaging.​

Nothing‘s launch of the Phone (3a) and Phone (3a) Pro, maintaining the brand’s signature transparent design, signifies an effort to blend aesthetic uniqueness with affordability. This approach targets a segment of consumers seeking distinctive yet cost-effective devices, suggesting a strategic move to capture diverse market demographics.​

Tecno’s Spark Slim Phone key feature is a thermochromic pigment that allows users to change the phone’s color, offering a unique and customizable design.

Personal Computers: Innovations in Form Factor and Sustainability

Lenovo’s unveiling of the ThinkBook Flip with a rollable OLED display expanding from 13 to 18.1 inches represents a strategic innovation in adaptable form factors, targeting professionals requiring versatile computing solutions. Such developments indicate a market shift towards flexible and multifunctional devices.​

The introduction of the Yoga Solar PC, featuring a solar-powered charging system, reflects a strategic emphasis on sustainability and energy efficiency. This move aligns with the growing consumer and regulatory focus on environmental responsibility, positioning companies that prioritize eco-friendly innovations favorably in the market.

Wearables: AI Integration and Health Monitoring

The wearable technology showcased at MWC 2025 highlights a focus on AI and health monitoring features. Honor’s Watch 5 Ultra, offering active noise cancellation and AI real-time translation, exemplifies the trend towards multifunctional wearables that enhance user convenience and connectivity. Wearable devices need to expand beyond traditional fitness tracking functionalities, to continue driving interest from consumers.

Strategic Shifts and Opportunities

The announcements at MWC 2025 indicate several key trends in the mobile devices industry:​

AI as a Core Differentiator: The substantial investments and integrations of AI across devices underscore its role as a key differentiator. Companies that effectively harness AI to enhance user experience are likely to gain competitive advantage, prompting industry-wide acceleration in AI development and adoption.​
Design Innovation and Diversification: The focus on unique design elements and adaptable form factors reflects a strategic effort to cater to diverse consumer preferences. This trend suggests that companies are moving beyond traditional device designs to offer personalized and versatile products, potentially capturing broader market segments.​
Sustainability as a Strategic Imperative: The introduction of eco-friendly technologies, such as solar-powered PCs, indicates a strategic response to the increasing consumer and regulatory demand for sustainable products. Companies that prioritize environmental responsibility may enhance their brand reputation and meet the evolving expectations of socially conscious consumers.​

Conclusion

In conclusion, MWC 2025 highlighted strategic trends that are reshaping the consumer electronics landscape. The emphasis on AI integration, design innovation, and sustainability reflects a market that is rapidly evolving to meet changing consumer demands and technological advancements. Companies that align their strategies with these trends are positioning themselves to lead in this dynamic environment.

📢 Missed our daily insights from MWC 2025?
Catch up on all the key highlights! 🚀 Check out IDC’s Hot Takes from last week below. ⬇️

For marketers driving adoption of AI-enabled products, differentiation is no longer optional, it’s essential. To capture attention, build trust, and accelerate buyer decisions, you need a strategy that aligns sales activation, brand positioning, and customer engagement—at scale.

IDC’s latest research shows that midmarket vendors who adopt AI-driven strategies aligned with three key pillars—differentiation, active buyer engagement, and fast sales activation—are outpacing their competitors. Here’s how leading companies are doing it.

Strategy 1: From Static Messaging to Real-Time Personalization

B2B buying is evolving fast, mirroring the seamless, predictive experiences of B2C. By 2028, 70% of B2B buyers in the U.S. will rely on GenAI to discover, evaluate, and select vendors (IDC, 2024). The challenge? If you’re not leveraging AI to personalize in real-time, you’re already behind.

Winning marketers aren’t just gathering customer data—they’re activating it instantly. IDC research confirms that vendors with AI-powered Customer Data Infrastructure (CDI) see higher engagement rates, as they can dynamically adapt messaging based on buyer behavior (IDC, 2024). This shift from broad personalization to real-time precision is what will separate leaders from laggards.

Over the next few years, 62% of traditional B2B lead and demand generation efforts will transition to automated sensing, personalized engagement, and AI-powered content creation. AI will bridge the gap between digital and physical engagement, allowing seamless, highly relevant interactions.

By 2028, AI-powered agents will redefine luxury and high-value for both B2C and B2B interactions. From frictionless service to predictive personalization, these agents will enhance customer experiences, allowing brands to scale premium engagement, democratizing “white-glove” experiences.

Winning Move: Build an AI-powered customer data infrastructure (CDI) that unifies insights across platforms, enabling tailored engagement before competitors reach your buyers (IDC, 2024).

By leveraging AI, vendors can deliver deeply personal experiences that build confidence rather than hesitation. The key is transparency: showing customers how AI enhances rather than replaces human connection, along with enabling clean, freely shared data collection from consumers.

This delicate balance between automation and authenticity defines the next era of consumer — and customer — engagement.

Strategy 2: Aligning AI with Buyer Expectations—Not Just Marketing Tactics

Marketers often focus on how AI enhances their campaigns, but what truly matters is how AI changes buyer behavior. The brands growing fastest today are those that position their AI-enabled products as essential to their customers’ success.

For example, 62% of B2B demand generation will be AI-powered by 2027, automating how buyers are reached and nurtured (IDC, 2024). But automation alone isn’t enough—buyers need proof. Vendors who provide benchmarks, case studies, and independent validation will build credibility faster than those relying on broad claims.

Additionally, by 2029, companies will spend up to five times more on optimizing AI-powered large language models (LLMs) than traditional search optimization. This shift will redefine how brands surface in AI-driven recommendations and product searches, making LLM optimization a top priority for marketers.

Winning Move: Lead with trusted results, not just AI features. Show how your product delivers real, measurable outcomes in an AI-driven world.

Strategy 3: AI as a Sales Activator—Not a Sales Replacement

AI is transforming the buying journey, but sales teams remain critical in closing deals. However, the role of sales is shifting. With AI accelerating the discovery and consideration phases, traditional outreach won’t be enough.

Reality Check: If your AI-powered product isn’t integrated into an AI-optimized sales strategy, you’re losing deals.

IDC research highlights that high-growth companies are leveraging AI to identify buyer intent, surface in AI-driven searches, and automate engagement triggers that put their sales teams in the right conversations at the right time (IDC, 2024).

As AI increasingly shapes the discovery and consideration process, sales reps might worry about being overshadowed or losing relevance. Rather than fearing AI, sales leaders can empower their teams by embracing AI and learning how to leverage it effectively.

Winning Move: Train your sales teams to use AI insights, ensuring they step in when and where they add the most value—at the moments AI alone can’t close the deal.

AI is reshaping how to reach decision-makers, personalize engagement, and drive growth for AI-enabled products. Marketers who act now will lead in a future where AI is the very foundation for a competitive advantage.

IDC’s bundled solutions are designed to help marketers sell value, not just products. Our solutions focus on:

Differentiating Your Strategy – Research-backed insights to set your brand apart.
Reaching Active Buyers – Engaging the right audience with compelling content.
Activating Sales Fast – Providing ready-to-use tools for quicker conversions.

The combined power of IDC’s award-winning intelligence experts and proprietary data has facilitated customer growth for over 60 years.

Let’s talk about how you can accelerate adoption, build trust, and win buyers in the AI era. Reach out today.

As we navigate the complexities of the global economy, the most recent tariffs imposed by the US on China have introduced new variables into our forecasts. The current IDC forecast of 9% growth includes the impact of the additional 10% tariffs levied last month. While the consensus was that these initial tariffs would have a limited net impact on overall spending, they have caused competitive disruption and created additional risks for consumer spending. We’ve already seen signs of weakness in consumer spending, which increases the risk of a downturn lasting into CYQ2.

We will be factoring the tariffs announced today into our forecast, if they stay in place, with the potential impact being more significant than last month’s tariff actions. The downstream impact is lower GDP forecasts by the end of March for the U.S economy. The duration of these tariffs, along with other factors like currency and interest rates, will play a crucial role in the impact on this year. Some economic indicators for Q1, especially consumer confidence, are already starting to deteriorate.

The obvious downside risk of these tariff actions is that a prolonged trade war could add to existing pressure on consumer spending and trigger a U.S. recession, as consumer goods are heavily impacted by the most recent tariffs.  Recently, IDC published a new downside scenario illustrating the potential impact on IT spending, with most of the impact on devices and IT services, while infrastructure and software remain more resilient.

IDC’s baseline IT forecast is currently at 9% IT spending growth in 2025, with a prolonged trade war downside scenario of 4% growth. Within this range, the highest likelihood is that PC and smartphone demand would see the quickest declines, with early estimated potentially bringing the baseline down to 6-8%, followed by impacts on services and other segments if the trade war continues.

An unlikely downside scenario exists where a recession triggers a rapid reduction in AI interest, negatively impacting server and storage server spending. However, the risk of this scenario remains low as all indications are that hyperscale suppliers will continue to double down on spending plans to support AI workload. To that point, we are expecting about 20% revenue growth in server and storage spending this year, on the heels of the 50+% growth that we saw last year.

On the other hand, there is an upside scenario where IT spending growth could reach double digits again in 2025, driven by new trade agreements, falling inflation, and deregulation. However, this scenario is currently less likely due to the current policy direction.

Overall, we see far more downside pressure on our IT forecast because of the tariffs, but it might take until the middle of 2025 to fully play out. Even with the reality of tariffs, many businesses are holding off on making major buying adjustments. Given this uncertainty, our forecast range is unusually large and reflects policy uncertainty and will likely be biased to the downside unless policies change in the near term.

Conclusion

The impact of tariffs on IT spending is a rapidly evolving issue. While our baseline forecast remains at 9% growth for 2025, the potential downside risks from prolonged trade tensions and economic uncertainties could significantly alter this outlook. We believe businesses are currently in a wait-and-see mode, and the full effects of the tariffs may take a few months to manifest. As this fluid situation evolves it is crucial for companies to maintain agility and hedge against the impact that will come from continued varied scenarios.

Customers need to be proactive and adaptable in navigating this uncertain landscape. As stated earlier, the current IDC forecast of 9% growth includes the impact of the additional 10% tariffs which the US levied on China last month. At that time, we forecast that those initial tariffs would have a limited net impact on overall spending. These actions will cause competitive disruption in the supplier landscape (not all vendors are impacted equally), and this turn of events has created some additional downside risk for consumer spending going forward and some “buy forward” activity in anticipation of tariffs coming into effect, which creates more of an overhang for the remainder of the year.

We believe today’s tariff announcement, if they stay in place, increases the risk of a downturn in consumer spending lasting into Q2, which would increase the likelihood of a downward revision to IDC’s IT forecast to the midpoint of our 4%-9% growth range for total IT in 2025.

Crawford Del Prete and Stephen Minton contributed to this blog.

In today’s fast-paced world, technological shifts are no longer happening in decades; they’re happening in years, if not months. For enterprises to remain competitive, relying on past knowledge and static skills isn’t enough. Instead, businesses must cultivate a dynamic, adaptable, and continuously learning workforce. A culture of continuous learning has transformed from being a desirable trait to an essential strategy for sustainable growth.

The pressure to keep up with rapid change is particularly pronounced in tech-driven industries, where new frameworks, tools, and innovations emerge constantly. Enterprises that successfully instill a learning culture are not just enhancing their talent pool—they are future-proofing their business. In fact, according to IDC research, organizations that prioritize continuous learning report higher innovation rates, better employee retention, and a stronger competitive edge in the market.

So, for tech leaders, what exactly does it mean to build a culture of continuous learning, and how can companies overcome the common challenges that derail such efforts? Let’s explore.

The Growing Importance of a Learning Culture

Organizations around the globe are facing a widening skills gap, particularly in IT and technology. As roles evolve and job functions demand new expertise, traditional approaches to hiring no longer suffice. Simply put, enterprises and technology leaders can’t hire their way out of the skills gap; they must invest in upskilling their existing workforce.

However, while many organizations recognize the need for continuous learning, few manage to implement it effectively. A primary reason for this gap lies in outdated training methodologies. According to IDC findings, several common pitfalls prevent traditional learning programs from being effective:

Lengthy, uninspiring courses: Employees often find traditional courses too long, which reduces engagement and retention.
Irrelevant content: Training programs that don’t align with employees’ roles or career aspirations fail to deliver meaningful value.
Lack of real-world application: Without opportunities to apply new skills in real-world contexts, the knowledge gained from training can quickly fade.

These barriers highlight a critical point: fostering a learning culture is not about offering more training; it’s about offering better, more relevant learning opportunities that integrate seamlessly into the flow of work.

Key Elements of a Successful Learning Culture

Creating a continuous learning culture requires more than just access to educational resources. It involves a fundamental shift in how organizations view learning and development. Here are the key elements that drive a successful learning environment:

1. Personalized Learning Paths

One-size-fits-all training programs often fall flat because they fail to account for individual learning needs. To truly engage employees, organizations should offer personalized learning paths tailored to specific roles, career goals, and skill levels.

For instance, an enterprise technology company could develop tailored learning tracks for IT architects, business analysts, and sales leaders. These tracks might include foundational competencies complemented by elective modules, allowing employees to customize their learning journey based on their roles and areas of interest.

2. Blended Learning Approaches

A mix of different learning methods—such as online courses, in-person workshops, mentoring, and microlearning—keeps learning fresh and engaging. Blended learning not only caters to different learning styles but also allows employees to learn at their own pace while balancing work responsibilities.

Microlearning, in particular, has gained popularity for its ability to deliver bite-sized, easily digestible content. Whether it’s a short video, an interactive quiz, or a quick article, microlearning helps reinforce key concepts without overwhelming the learner.

3. Knowledge Sharing and Collaboration

Learning shouldn’t be a solitary endeavor. Encouraging employees to share their expertise and learn from each other fosters a collaborative learning environment. This can be facilitated through:

Internal communities of practice: Groups where employees with shared interests or roles can discuss challenges, share insights, and collaborate on solutions.
Mentorship programs: Pairing less experienced employees with seasoned professionals helps transfer knowledge and build stronger internal networks.

4. On-the-Job Learning Opportunities

While formal training is important, much of what employees learn happens on the job. Organizations can enhance this natural learning process by:

Assigning stretch projects that push employees to develop new skills.
Encouraging cross-functional collaboration, which exposes employees to different perspectives and areas of expertise.
Providing access to real-time learning tools and resources, such as AI-driven coaching platforms.

5. Recognition and Rewards

People are more likely to engage in continuous learning if their efforts are recognized. Creating a system that acknowledges and rewards employees for skill-building not only motivates individuals but also reinforces the organization’s commitment to learning.

Recognition doesn’t always have to be monetary. It can include public acknowledgment, career advancement opportunities, or even simple peer-to-peer shout-outs. The key is to create a culture where learning is celebrated and seen as a core part of professional success.

Leadership’s Role in Driving a Learning Culture

A learning culture cannot thrive without the active involvement of leadership. When executives champion continuous learning and model it through their actions, it sends a powerful message to the entire organization. IT leaders can drive this culture by:

Communicating the value of learning: Regularly highlighting the importance of skill development in company meetings, newsletters, and one-on-one discussions.
Investing in learning initiatives: Allocating sufficient budget and resources to support learning and development programs.
Leading by example: Participating in learning activities themselves, whether it’s attending workshops or completing online courses.

When leadership prioritizes learning, it becomes embedded in the organization’s DNA, driving a mindset of continuous improvement across all levels.

The Bottom Line: Learning as a Strategic Imperative

In a technology landscape defined by rapid change, the ability to learn and adapt is what separates thriving organizations from those that fall behind. Championing a culture of continuous learning is no longer just a best practice—it’s a strategic imperative.

Organizations that succeed in fostering this culture will not only bridge the skills gap but also position themselves as leaders in innovation, agility, and employee engagement. As Peter Drucker aptly said, “The only skill that will be important in the 21st century is the skill of learning new skills.”

For enterprises looking to stay ahead, the time to start building that skill is now. For more information, including analyst-led advice for tech buyers, read our latest research.

Asian banks need technology investment to continue their growth momentum. The industry is robust, with nineteen of the top 50 global banks being Asia-based. If these banks do not continue investing in emerging technologies to drive innovation and productivity, they may face increased resilience risks in the long run.

The Asian banking sector has faced numerous challenges and is rapidly evolving due to geopolitical tensions, rising interest rates, growing needs for inclusion and microfinance, increasing demand for hyper-personalized services, a worsening risk environment, operational efficiency issues, and tighter regulatory oversight.

Each of these challenges require technology investments. In this context, the bank must decide on what its priority investments will be. Let’s take a look at some of the potential winners for 2025 and beyond.

Banks need to be agile in their transformation initiatives. Agility depends on a combination of technology infrastructure and a strategy that supports quick deployment of new capabilities. This could involve a platform strategy, microservices for easy integration, or a mix of adopting and building. Choosing the right approach is both an art and a science.

What is needed is an infrastructure that facilitates innovation. All of us who have struggled with the “Technology Bill of Material” understand that the legacy infrastructure setup processes are in months in an age where innovation, POC, and A/B tests are required within days. That is where cloud computing is important, and it must be in the mix. Cloud computing is also important as more of the enhancements require extensive data computing.

While agility helps build an architecture for fast innovation deployment, banks still need to decide on enhancements. Three factors are coming into play in today’s digital age. These are functionalities that increase revenue, automation opportunities to improve efficiency, and, finally, build trust through resiliency and avoiding financial crime.

In IDC’s survey (June 2024), 41% of the banks stated that they require new products and services to generate revenues.

Launching any new product requires data, which may comprise of a mix of synthetic data generation and data management techniques. It also requires effort to build the right models, whether that may be techniques like graph and RAG or models such as agentic, generative, predictive, or interpretative. Servicing, operational excellence, and risk management remain the main areas of deployment. Embedded finance and new product development are good use cases for revenue enhancements through AI deployment.

Climate risk is also emerging as a real threat, impacting project risks and worsening personal credit. Extreme weather events affect individuals’ ability and willingness to make payments. Investing in geospatial data-based solutions could be a smart long-term strategy.

Placing these bets could eventually lead to positive leverage for Asian BFSI players.

Join me and my team at our 2025 Financial Services event series happening across Singapore, China, and India from June to August. We’ll explore the latest trends in DX adoption by Asian banks and demonstrate how financial leaders can build holistic ecosystems with technology. Learn how to reap AI benefits through operational efficiency and improved customer experience in a multi-polar world. Also, don’t miss our upcoming webinar on Driving Growth Beyond AI in Banking and Financial Services – register today!

On the 1^st of February, India’s Finance Minister delivered the 8th consecutive Union budget. While the focus of several earlier budgets was to boost the economy via large Government Capital Expenditure (Capex) plans while setting the stage for the Private sector Capex to follow, the 2025 budget adds a new dimension.

The focus of this year’s budget is to spur private consumption to boost an otherwise slowing economy while maintaining Capex and ensuring fiscal prudence. The good news is that it continues to recognize the importance of the technology ecosystem in bringing long-term growth to the economy, in line with the changing dynamics of the business world. This budget will have a positive mid- to long-term impact on the economy via the various initiatives it has announced, subject to all of them being executed on time. The budget aims to strengthen the foundations for the tech sector via setting up a digital infrastructure, easing supply side constraints (financial & skills), and laying the groundwork for self-reliance. It does so in a few ways:

Digital Infrastructure Build

Funding India AI Mission: According to IDC, worldwide spending on AI would cross $600B and India’s domestic spending on AI is going to cross $9B by 2028 (IDC AI and GenAI Spending Guide, 2024V2, Aug 2024). In this budget, the ‘India AI Mission’ is allocated $267M (INR 2000 crore) to boost AI infrastructure capability, ecosystem development, and policy and use case formulation in India. This will be aided by India’s plan of setting up an 18,000 GPU cluster to enable Indian startups to build LLMs and multi-modal AI systems. With this, India is positioning itself well to play a key role in global AI adoption of models, ethics and governance at a global level, in addition to being a potential use case capital of the world.

Setting Up of National Geospatial Mission: The launch of the National Geospatial Mission to build geospatial infrastructure and data and modernize land records, along with the initiative to open private sector access to data and maps from the PM Gati Shakti portal, will give a fillip to technology startups focused on logistics, agriculture, weather etc.

Creation of the Bharat TradeNet Platform: This initiative will leverage India’s Digital Public Infrastructure for unified trade documentation boosting exports.

These announcements must be seen in the context of earlier announcements to drive AI innovation such as the launch of an AI Datasets Platform that includes non-PII data from different sources. The budget underlines the continued commitment of the Indian Government in building a robust foundation of data, infrastructure, capital and use cases for technology-led growth.

Easing Supply Side Constraints

Skill Constraints: One of the challenges the technology industry is facing is the skill gap between industry demand and market supply. According to the IDC FutureScape: Worldwide Digital Business and AI Transformation 2025 Predictions — India Implications by 2027, 55% of India-based organizations will experience digital skills shortages that will cause project delays, slowing AI technology implementations into the following year. To address this, the budget has increased the intake into IITs, created additional provisions for technology-related fellowships, and announced an additional AI Center of Excellence in addition to the ones announced earlier. In the long term, the announcement to create 50,000 Atal Tinkering Labs in government schools to encourage scientific thinking can be transformatory.

Financial Constraints: One of the most effective proposals is the creation of the SIDBI Fund of Funds for Startups with a capital infusion of INR 10,000 crore (approx. $1.2 bn) and the Deep Tech Fund of Funds to invest in leading edge technologies. This will aid in ensuring promising startups can secure funding, thus paving the way for the next set of unicorns that will generate employment and revenues while potentially benefiting industries such as agriculture, education and manufacturing. According to IDC FutureScape: Worldwide Digital Business and AI Transformation 2025 Predictions — India Implications by 2026, 70% of India-based AI digital-natives, start-ups, and scale-ups will implement responsible AI policies to address trust concerns raised by IT and business leaders. We expect start-ups to leverage this fund effectively to strengthen their products with more focus on governance and responsible AI which will make their products more competitive and robust in addition to working on language models and use cases.

Self- Reliance

Over the years, the current government has introduced several incentives to boost local manufacturing to cater to global and local demand. The global demand for artificial intelligence (AI) and high-performance computing (HPC) will continue to rise, growing by over 15% in 2025, according to IDC ’s latest Worldwide Semiconductor Technology Supply Chain Intelligence report. In this budget, the government has decided to tweak and rationalize customs duties on several components in the manufacture of electronic products. This supports the long-term plan and aspiration to make India a manufacturing hub and promotes self-reliance in technology, among other things.

Another notable announcement includes the National Framework for Global Capability Centers (GCCs) to promote tier-2 cities for setting up GCCs. This will boost local employment opportunities for technology talent across India and solidify India’s position as the hub for GCCs, thereby propelling business for IT vendors who serve the GCC space.

In summary, the India Union Budget 2025 is forward-looking and has the government focusing on the right initiatives to position India as a strong and vibrant digital-driven economy. It reaffirms the Indian government’s faith in the Indian technology sector being a key driver for growth. Indian technology firms should leverage the initiatives launched by the government to innovate and produce cutting edge products and services.

Download this presentation excerpt to learn how to navigate challenges and seize opportunities in India’s evolving digital business landscape. To leverage IDC India’s technology research and advisory expertise, contact IDC today.

Vasant Rao and Sharath Srinivasamurthy contributed to this blog.

If software sourcing is a major headache for your organization, you’re not alone. 70% of North American IT executives consider software sourcing and vendor selection a major source of frustration. And, it’s no wonder. 

The average software sourcing process involves 28 stakeholders and takes six months. That’s six months of manual research, vendor meetings, demos, internal debates, and ultimately, a decision that still may not be fully informed.  
 
It’s time to embrace a faster, smarter way forward. 

Introducing IDC TechMatch, the first AI-driven software sourcing platform that empowers you to make confident software investment decisions faster using the industry’s leading technology market research and data. 

IDC TechMatch: Software Sourcing Designed for Tomorrow’s Tech Leaders  

Today’s CIOs are taking on more responsibility to shape the future of their organizations. They are expected to make strategic decisions that drive innovation and business growth with limited time and resources. With the pressure to deliver results quickly and efficiently, having the right tools at hand is critical.  

With its AI-enhanced capabilities, IDC TechMatch offers a revolutionary approach that dramatically reduces the time, effort, and complexity traditionally involved in the process. IDC TechMatch uses AI to streamline your software sourcing process, simplify collaboration, and give you the research-backed information you need to make confident investments faster. 

The Impact: What Industry Leaders Are Saying

IDC TechMatch transforms software sourcing effectively and efficiently. But don’t  take our word for it. Here’s what we’ve heard from your peers:

“40% of our lifecycle is spent on research. A tool like this would save us significant time and ensure we find the right fit the first time.” – Healthcare CIO 
“Having a shortlist generated instantly would have saved us from contacting 15 vendors, sitting through demos, and manually narrowing down options.” – Business Services CIO 
“I see this tool as a way to bring structure and transparency to software decisions, improving communication with senior leadership.” – Manufacturing CIO 

Personalized, Data-Driven Recommendations

IDC TechMatch analyzes your selected business requirements and delivers vendor recommendations that are based on IDC’s trusted and objective research. This eliminates guesswork and bias, ensuring that the vendors you spend time with are the best fit.

Tailored Shortlist That Updates in Real-Time

Traditional procurement can be a maze of lengthy vendor pitches, spreadsheets, and expensive consultants. IDC TechMatch generates a tailored vendor shortlist in real-time as you add and prioritize requirements, allowing you to focus on the best-fit solutions without manually sifting through endless options. 

AI-Guided Vendor Evaluation

IDC TechMatch goes beyond simple recommendations by providing AI-guided insights throughout the vendor evaluation process. IDC’s controlled AI environment protects your interactions, as opposed to risky web tools that may expose sensitive information or use incorrect data. This approach ensures you receive tailored vendor suggestions that align precisely with your requirements. The platform also incorporates G2 ratings and review data to provide users with peer-generated feedback.  

Collaborative Decision-Making and Governance 

With your teammates actively working their own tasks, bringing them together at multiple stages in the sourcing process can be daunting. IDC TechMatch allows you to add or remove colleagues, to collaborate on evaluations, all within a single platform. You can add comments, tag collaborators, and prioritize requirements to ensure that every aspect of the evaluation process is well-documented and aligned with your organizational goals.  Instantly generate an AI-powered vendor shortlist summary in an editable PowerPoint presentation to drive C-Suite alignment. 

Trusted Market Research at Your Fingertips

IDC TechMatch offers easy access to IDC industry-specific market data, including IDC’s unbiased MarketScape and ProductScape research. You’ll have a comprehensive view of the software market, so you can make well-informed decisions based on the latest insights. Whether you’re leading digital transformation initiatives or need tools to drive efficiency and productivity, IDC TechMatch makes it easy to navigate and find the information you need, all within a single interface.

Streamline RFP Development with AI Assistance

When you are ready to engage with your short-list of software vendors, an AI Sourcing Assistant provides you with an RFP template that includes a library of category-specific requirements from IDC’s research knowledge base and IT best practices to guide you through the vendor evaluation process. 

Prepare for Negotiations with Confidence

AI-driven insights and vendor-specific Commercial Guides enable you to negotiate contracts with a higher level of market insight to secure the best terms and reduce costs. And, for added context, simply open the AI Chat and ask questions about the vendors and get answers in real-time

It’s Time to Transform Software Sourcing with IDC TechMatch

Visionary leadership also requires practical solutions — tools that simplify complex processes and ensure their decisions align with long-term business goals.  
 
By combining IDC’s trusted research with AI-powered automation, IDC TechMatch enables technology leaders to make informed software sourcing decisions faster and navigate the future with trust and confidence. 

Explore IDC TechMatch and unlock the future of software sourcing, today.