Category: Uncategorized

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.

CEOs are focused on five critical areas that will define business success in the coming years as organizations navigate economic uncertainty, technological disruption, and shifting regulatory landscapes. From automation and AI-driven transformation to ESG and customer experience, today’s leaders are making strategic investments to ensure long-term resilience and growth.

Let’s investigate what is top of mind for CEOs as they prepare for the future, and which steps to take.

AI-Driven Workplace Transformation & Automation

Automation is no longer just about efficiency, it’s about enabling data-driven, decision-making at scale. CEOs are prioritizing intelligent automation strategies that streamline operations, reduce costs, and unlock new revenue opportunities. Organizations are leveraging automation to improve forecasting, enhance productivity, and innovation.

Ensuring employees are equipped to work along technologies is a key challenge in integrating automation into existing workflows. Ethical AI implementation, addressing bias in automated decisions, and maintaining transparency must be considered in AI-driven operations.

Those who invest in automation with a clear strategy will gain a competitive advantage, while those who resist will face operational inefficiencies and stagnation.

A top concern for CEOs as AI rapidly reshapes business function is workforce transformation. IDC predicts that by 2026, 20% of knowledge workers will take charge of their work transformation, using AI tools to automate workflows. Organizations will need to balance the benefits of empowered, efficient workers against potential risks related to AI governance and process consistency.

Companies must also consider responsible and ethical AI implementation. Those who invest in automation with a clear strategy will gain a competitive advantage, while those who resist will face operational inefficiencies and stagnation.

Regulatory Flux: Navigating Compliance Challenges in a Shifting Policy Landscape

Regulatory uncertainty continues to be a significant challenge, particularly as AI, data privacy, and ESG policies evolve. CEOs must stay ahead of emerging regulations, ensuring compliance while maintaining operational agility.

Businesses are investing in regulatory intelligence and governance frameworks that allow them to adopt new policies quickly. Those that proactively integrate compliance into their strategic planning will be better positioned to navigate risk and capitalize on emerging opportunities. In the AI space, evolving laws around data privacy, bias mitigation, and AI accountability are prompting organizations to develop strong internal compliance programs.

Additionally, ESG regulations are tightening, requiring companies to provide greater transparency in their sustainability practices. Organizations that fail to adapt risk significant fines, reputational damage, and operational disruptions.

CEOs can influence industry regulations while ensuring their businesses remain competitive by prioritizing proactive compliance strategies and engaging with policymakers early.

Customer Experience Squared: Rising Expectations for Digital Services

Consumers and citizens alike expect seamless, personalized digital experiences—across all industries. CEOs recognize that customer experience (CX) is no longer just a differentiator; it’s a necessity.

AI-driven personalization, real-time engagement, and frictionless digital interactions are becoming the standard. Organizations that prioritize CX will see stronger customer loyalty, while those that fail to meet expectations risk losing relevance in an increasingly digital-first world. To anticipate customer needs and deliver personalized solutions in real-time, companies must invest in AI-powered chatbots, predictive analytics, and omnichannel experiences.

Furthermore, digital trust remains a key factor—organizations must ensure that their data collection practices are ethical and that customers feel confident in their interactions. By embedding AI and automation into CX strategies while maintaining a human touch, businesses can cultivate lasting customer relationships and drive long-term success.

Expanding Digital Security Frontiers: Fortification Against Multiplying Threats

As organizations accelerate digital transformation, cybersecurity risks continue to grow in complexity and scale. CEOs are prioritizing robust security frameworks that can withstand sophisticated cyber threats, ensure regulatory compliance, and protect sensitive data. The increasing adoption of AI, cloud computing, and IoT technologies has expanded the attack surface, making proactive security strategies more critical than ever.

Organizations are implementing zero-trust architectures, AI-powered threat detection, and enhanced identity management systems to safeguard against cyberattacks. Cyber resilience is no longer just an IT issue—it is a core business imperative. CEOs are working closely with security leaders to embed cybersecurity into business strategies, ensuring that security investments align with operational priorities.

Additionally, cyber risks extend beyond the enterprise, with supply chain vulnerabilities and third-party security breaches posing significant challenges. Companies must take a holistic approach, integrating security into every stage of digital initiatives and fostering a culture of cyber awareness across all levels of the organization.

Future-Proofing Against Environmental Risks: ESG Operationalization and Risk Management

Sustainability is no longer a corporate social responsibility initiative—it’s a business imperative. IDC foresees that by 2027, 75% of customers will expect CO₂ emissions data on everything from build, operate and disposition of their IT assets to assist with their overall corporate sustainable goals.

Therefore, CEOs are now embedding environmental, social, and governance (ESG) principles into their operations to mitigate risks, meet stakeholder expectations, and drive long-term value.

As ESG regulations tighten and investor scrutiny increases, companies that align sustainability with business strategy will be better positioned for future success. However, operationalizing ESG requires more than just meeting compliance standards; it involves integrating sustainability into business models, product development, and supply chain operations.

Businesses that effectively integrate ESG into their corporate strategies will mitigate risks, build stronger relationships with investors, customers, and employees while sustaining competitive advantages.

Conclusion

CEOs are facing a complex landscape where technology, regulation, and shifting consumer expectations intersect. Those who embrace automation, invest in AI-driven workforce transformation, navigate regulatory change proactively, prioritize customer experience, and operationalize ESG strategies will mitigate risk and drive sustainable growth.

Organizations that take a strategic, forward-looking approach to these pressing challenges will thrive in the future. Leaders who prioritize agility, innovation, and ethical business practices will shape the next generation of successful enterprises. By staying informed and adapting to change, CEOs can ensure their companies remain resilient and competitive in an evolving global economy.

Interested in learning more about who is leading the AI revolution? Our new eBook explores the C-suite’s strategic priorities for AI adoption and offers key insights on implementation challenges, opportunities for innovation, and actionable steps to ensure AI delivers tangible business outcomes.

“Change” has been the theme in tech marketing for the past several years. We recently published the results of our 22^nd annual tech marketing spend benchmark, IDC Tech Marketing Investment Guide for 2025 Planning: Benchmarks, Key Performance Indicators, and CMO Priorities.

The results reflect the acceleration of digital transformation over the past five years, the rapid adoption of GenAI, and marketing’s response to the permanent shift in consumer and B2B buying behavior. The trendline indicates that marketing has officially entered the next era – the AI experience era.

A Look Back at Marketing Since the Dawn of Digital

In 2007, social media was introduced to the world, forever altering how consumers obtain information and engage with brands. For the next decade and a half, marketers embarked on a digital transformation of both customer engagement and internal operations.

Digital, social and demand centers of excellence were formed. Automation platforms for both marketing and sales were adopted. Use of analytics and database marketing placed the responsibility of creating leads and driving demand, squarely in marketing’s remit.  

In 2023, GenAI changed the game.. Creative capabilities were broadly placed into the hands of all marketers and citizen creators. Searching and gathering information was augmented and in some cases, replaced by GenAI applications such as ChatGPT. In the 2024 B2B Tech Buyer Behavior Study, 20% of respondents stated they are using AI Chatbots to search and for discovery of information, brands and vendors. This has lead marketing leaders to take full responsibility for the digital customer experience and the orchestration of the omnichannel experience.

The 4 Biggest Things to Happen to Marketing in the Next Decade

Marketing’s Remit Has Expanded

Starting back in 2021, IDC Research showed that marketing’s #1 remit was driving business growth. In the 2023 Marketing Organizational Models study, at least 80% of senior marketing leaders stated they carry the responsibility of digital customer experience, employee communications, internal brand communications and marketing technology.

In 2024, IDC research found that CMOs are now assuming the role of the Chief Market Officer, expanding marketing’s role with the full accountability across the go-to-marketing engine, including sales.

As a result, the technology marketing spend benchmark found a 10.8% increase in marketing investment year-over-year. The allocation of investments have evolved, increasing the investment in marketing technology program spend by 26% and allocating 3.4% more to staffing of MarTech roles.

Digital experience roles have evolved far beyond email and phone outreach to know include managing chat and mobile/SMS engagement. Web and social media marketing staffing has grown 8% as a result of advertising staff experiencing a shift to enable more social media efforts, mobile advertising, pulling work in-house from agencies.

The AI Disruption

56% of benchmark participants anticipate a 10% or higher ROI from GenAI in the next 12-18 months. A quarter of marketing leaders believe that GenAI represents a major opportunity and are striving to be leaders, even if it means making mistakes.

GenAI is actively being utilized across marketing. 97% of marketers are leveraging GenAI to support content marketing, including dynamic SEO optimization, creating derivatives of content, translating and localizing.

82% of marketers are supporting the evolution of web marketing, beyond digitally delivering analog content (i.e. PDFs) to incorporating more interactive and immersive content, such as personalized digital assistants, hyper-personalized web pages and personalized offers.

Marketing operations are also experiencing substantial benefits from GenAI with close to 80% of marketers focused use cases such as micro-segmentation, more real time insights and gathering voice-of-the-customer. 

ABM Gives Way to Personalization-at-Scale

While the term “Account Based Marketing” or ABM is still floating around, less marketers are focused on continuing to enable personalized marketing for a subset of the customer and prospect base.

Instead, marketers are leveraging GenAI to achieve personalization-at-scale. The benchmark study found an increase in industry and audience marketing staff positions as marketers are created horizontal teams focused on connected experiences, moving beyond marketing to one persona and instead focusing on the whole marketing journey. 

A key dependency for GenAI and personalization-at-scale is the health of marketing’s data infrastructure. Marketing is only as good as the data it runs on. Recognizing how critical intelligence is to AI experience marketing, marketers rebalanced their intelligence investment across competitive, customer and market intelligence. The investment in the MarTech stack sits at 4.4% of the marketing budget, with a 22.4% surge in data and analytics spending year-over-year.

Marketing to GenAI

There is a lot of conversation around GenAI evolving the marketing function, even changing marketing roles. Did you consider that soon you may be marketing to GenAI agents of your customers? Even having your own GenAI agent engage, rather than a marketing or sales representative? In the 2024 B2B Tech Buyer Behavior Study, 73% of B2B buyers stated they would use more AI guided selling assistants to act as an intermediary between themselves and vendors, such as doing product comparisons, responding to RFI/RFPs, answering technical questions and providing quotes and configurations. 

Shoring up your data, tech stack, digital experience enablement, and LLM optimization is critical. This requires a combination of technology and UX in addition to continued investment in technology and experience platforms.

It is also essential to make sure you have the right people to deliver. Marketers must continue to up-skill and hire staff that understands how to train and prompt LLMs, design and implement omnichannel experiences.

Over the last five years, we have seen the shift in the priorities and focus of marketers through their marketing investment trends. IDC Research finds that the executive team now has a spotlight on marketing’s technology investment and the maturity of customer intelligence.

To deliver to marketing’s strategic responsibility and expectations, leaders need to maintain the investment focus on maturing the core AI experiential capabilities, essential for marketing in the experience era. 

B2B commerce is evolving at an unprecedented pace. Rapid technological advancements, evolving customer expectations, and market dynamics are paving the way for increased adoption of digital commerce platforms.

B2B organizations are reaping the benefits of enhanced sales efficiency, improved profitability, and better customer experiences. However, as the B2B digital commerce landscape becomes more complex, organizations must stay attuned to emerging trends and address related challenges in an agile way. This means transforming their operations and strategically aligning their resources to maintain a competitive edge in this dynamic landscape.

B2B Digital Commerce Is Increasingly Becoming Experience Driven

Business buyers now demand personalized interactions expecting streamlined product discovery and context-aware recommendations. Role-based personalization, while addressing the collective needs of buying groups, will be crucial in B2B sales. Additionally, self-service capabilities can empower buyers and reduce friction in complex buying scenarios.

This means empowering them and giving them a sense of control over the buying process, while also providing the crucial “human touch” to aid decision making. As sellers continue to drive a significant part of the buying experience, they can benefit from personalized support, increased automation, and streamlined workflows so they can focus on strategic selling. Tools like digital sales rooms exemplify this synergy between digital tools and human expertise by creating collaborative environments where buyers and sellers can interact efficiently.

AI Is Transforming Every Facet of Digital Commerce

From hyper-personalized interactions to predictive analytics, AI is poised to transform the entire buying journey. AI-driven product configuration tools can streamline workflows and provide dynamic and needs-based solutions. Generative AI (GenAI) offers new opportunities for workforce enablement and customer engagement.

AI agents can further transform this through autonomous decision-making and self-optimizing processes, reimagining how organizations interact with their customers. To fully leverage this potential, B2B organizations must build robust data foundations and enable their workforce to fully leverage AI’s potential.

Sustainability as a Strategic Imperative

Embracing sustainability is becoming a strategic necessity for organizations. B2B organizations must integrate sustainability considerations into their digital commerce strategies to effectively meet operational objectives, regulatory demands and customer expectations. This includes adopting circular economy principles, enhancing transparency in sourcing, and minimizing the environmental impact of their fulfillment processes.

Digital platforms are also crucial for driving sustainability efforts such as marketplaces for used products that promote recycling and sustainability. An example of these are marketplaces for used EV (electric vehicle) batteries which promotes their effective retrieval and recycling.

Continuous Adaptation and Proactive Compliance Are Key To Thrive

An ever-evolving regulatory and geopolitical landscape requires a proactive approach to compliance and risk management. The stakes are high, with non-compliance potentially leading to substantial economic losses, reputational damage, and loss of customer trust. Thriving in this landscape will require continuous monitoring and adaptation, along with fostering awareness and good compliance practices within organizations

How Can Companies Thrive in This Complex Landscape?

Invest in Digital Technologies That Enable Agility

Embrace an agile approach to digital commerce and strategically align your technology stack. Invest in technologies that can scale and support evolving needs. Composable and API-first solutions can provide flexibility and enable rapid adaptation to evolving market requirements.

Enable Your Workforce to Leverage AI-Enabled Tools

Prepare for an AI-driven future by investing in employee training and change management. This will ensure your workforce is comfortable and proficient in using AI tools across various business functions. When leveraging AI to enhance customer interactions, maintain a balance with human connection. Personal relationships will remain crucial in driving transparency and building trust with your customers.

Understand How Digital Commerce Fits in Your Overall Sustainability Strategy

Begin by assessing how to integrate sustainability into your digital commerce strategy.  This could involve designing metrics to measure your sustainability impact.  A broader approach includes embracing circular economy principles and increasing transparency regarding the sustainable footprint of your products and suppliers.  This allows you to simultaneously satisfy growing customer demand and meet evolving regulatory requirements.

Foster Change Management

Cultivate a data-centric organization where employees are comfortable working with and sharing data to drive data-driven decisions.  Furthermore, promote awareness and compliance practices throughout the organization.  Strategically leverage digital technologies to support your company’s compliance and risk management processes.

Navigating the Future of B2B Digital Commerce

By focusing on these key trends, B2B organizations can navigate complexities and position themselves for success.  An agile approach will be crucial for effectively addressing challenges. The ability to pivot quickly and respond to change will provide a competitive advantage, enabling B2B organizations to capitalize on emerging opportunities and thrive in this evolving landscape.

When it comes to doing business, time isn’t just money — it’s also your competitive edge. Yet many organizations waste this precious asset on IT procurement processes that can stretch six to nine months. That’s a lot of time — and a lot of lost sleep, particularly for today’s CIOs.

As technology rapidly evolves and IT governance takes center stage, the role of the CIO has never been more dynamic — or demanding. Today’s CIOs have transitioned from overseers of IT infrastructure to serving as business strategists, innovators, and drivers of organizational transformation. They’re managing procurement teams, integrating cutting-edge solutions, and addressing legacy system challenges — all while juggling tight budgets and even tighter timelines.

The mandate is clear for 2025: deliver more efficiency and greater strategic value, faster. Yet, traditional procurement undermines this goal, bogging down the process with manual tasks, lengthy approvals, and inefficiencies that slow progress when speed is critical.

Let’s pull back the curtain on some of the key pain points:

Lengthy Timelines: Delays in software sourcing can hold up the launch of new projects — putting organizations at a significant disadvantage.

Legal Bottlenecks: Complexities in contract negotiations and compliance reviews can add significant human-hours to the process and weeks or even months to timelines.

Data Deficiencies: Seventy-five percent of organizations struggle with inadequate data analytics, leading to poorly informed decisions. (Veridion)

Resource Strain: Overestimating the maturity of procurement processes and misjudging workloads can put undue pressure on teams.

Legacy System Integration: Adopting new software while managing outdated systems can be a logistical nightmare.

Supplier Risks: Evaluating vendor performance and mitigating risks can consume significant time and resources.

The list is daunting, but there’s hope ahead.

Strategic Software Sourcing: The AI Advantage

AI-powered sourcing platforms are transforming the process by automating manual tasks, improving decision-making, optimizing costs, and enhancing efficiency. They empower businesses to move faster, better mitigate risks, and make smarter technology investments.

While time is certainly money, it’s also essential to understand strategic sourcing — a proactive and future-centric approach to software procurement. Unlike traditional methods that focus solely on immediate cost, strategic sourcing aligns procurement decisions with sustainable business goals. It emphasizes long-term supplier relationships, total cost of ownership, and demand forecasting.

Strategic sourcing is about thinking ahead. It’s not about finding the cheapest solution; it’s about finding the right solution that delivers value over time. AI supercharges strategic sourcing, addressing major pain points with precision, analytical intelligence — and the all-important speed.

Here’s how AI can help:

Automate Routine Tasks: Routine tasks like data validation, purchase order management, and contract analysis can bog down procurement teams. AI automates these processes, reducing errors and freeing up professionals for more engaging work.

Accelerate Timeline: Efficient and effective AI-driven platforms can cut procurement cycles significantly, enabling organizations to launch projects faster.

Enhance Data Accuracy: Although most organizations use data analytics, less than 20% are satisfied with the results. AI can improve data accuracy and provide actionable insights for better decision-making. (CIOinsight)

Optimize Demand Forecasting: Procurement teams often rely on guesswork when it comes to forecasts. AI can use predictive analytics to ensure the right resources are available at the right time.

Mitigate Supplier Risks: AI can evaluate supplier performance, identify potential risks, ensure compliance with regulations, and increase transparency and trust.

Reduce Costs: By automating much of the process — and freeing teams for more strategic work — AI can help achieve significant cost savings while maintaining high-quality outcomes.

The Bigger Picture

AI doesn’t just make IT procurement faster — it redefines what’s possible. By accelerating access to new technologies, AI fuels innovation and keeps businesses ahead of the curve. Streamlined processes build agility, empowering organizations to adapt to market shifts in real time. And by automating the mind-numbing tasks no one enjoys, AI frees your teams to focus on strategic, meaningful work — the kind that sparks collaboration and creativity.

In a world where every second counts, why waste months on outdated procurement processes? With AI, you’ll not only save time — you might even find some to spare (or catch up on sleep.)

Step Up to Smarter Software Sourcing with IDC TechMatch

IDC is transforming the way IT teams make software investments with a revolutionary new software sourcing platform. IDC TechMatch, powered by AI and grounded in the world’s most reliable IT market intelligence, will simplify, accelerate, and align your IT sourcing decisions.

With IDC’s new AI-driven software sourcing platform, TechMatch, you’ll simplify decisions, optimize spending, and keep your organization ahead of the curve, gaining a strategic advantage over your competitors.

Ready to discover how IDC TechMatch can transform your pain points into game points?

It’s “time” to learn more today.