Global IT Trends

A significant set of digital insights provide organizations with a point of reference (domestic and global) for important business, technical, sourcing, organizational, social, and spending changes.

Digital transformation is nothing new. Depending on your definition, it can go back as far as the middle of the twentieth century. Even by the most conservative interpretations, leading enterprises have been on the digitization path for a couple of decades.

Over the last few years, however, digital transformation has taken on a new urgency. As organizations have weathered the upheavals instigated by the pandemic, inflation/recession, digitization has become integral to their responses and also their future plans. Looking ahead, it is clear that digital technologies will continue to play a seminal role in enterprise strategy and success.

However, certain aspects of digital transformation are likely to increase in importance while others will diminish. This research describes some of the trends IT leaders can expect to become more prevalent – and others that are more likely to fade.

With the enduring economic uncertainties prevailing, and the dramatic changes across every industry being enabled/driven by IT, organizations around the globe are continuing to focus on leveraging IT to swiftly reduce expenses and, more recently, increase revenues. SMAC (Social, Mobile, Analytics, and Cloud), blockchain, AI, Robotics Process Automation technologies, with the emergence of the newer Metaverse and Quantum Computing, are clearly transforming the industry. While IT appears to be quite resilient with IT budgets, hiring, and salary increases on the rise, upon closer analysis these increases continue to evolve cautiously. This guarded trend has brought increased attention to reducing IT budgets through IT infrastructure spending (especially Cloud) and sourcing (especially offshore).

Since its inception in 1980, the Society for Information Management (SIM) survey has helped IT leaders understand important issues and trends. Dr. Luftman coordinated this initiative from 1999 – 2014. Since 2009, management associations from around the globe (including CIOnet) have participated. This annual global IT perspective, now directed by GIIM, presents the insights from over 2,650 organizations representing every major geography (North America, Europe, Asia, Latin America, Africa, Middle East, and Australia) and industry, including a look at the future role of IT.

While the detailed results are published and presented around the globe, as well as deliberated on our LinkedIn discussion group ( The Future Role of IT ), a slide set and papers with the major results is available via the links at the bottom of this screen..

Celebrating 40+ Years

The following are the top 6 “headlines” from this year's important research:

1. Intensifying business attention to digitization/transformation:

Business Change, Transformation, Strategy, Collaborating, & Innovation
AI, Security, Data, & Cloud, & Customer Experience

2. Top 5 management concerns: AI now 1; Security & Alignment pervasive for 10+ Years

AI, Security, IT-Bus. Alignment, Compliance/Regulations, Data/Analytics

3. Top 5 investments: AI Now 1; remaining 4 the same for the last 12+ years:

AI, Security, Analytics/BI/Data Mining/Big Data, Cloud Computing, Software, Development/Maintenance

4. Budgets, Hiring, Salaries Increasing

5. % of Budget 2025 – 2025 trend

> Cloud (18.2% – 23.3%)
< Employees (35% – 32.9%)

6. Talent challenges/shortages, and need to invest in tech to manage dispersed workforce & serve customers

Strategic Alignment Maturity Research

IT is reshaping global markets while reshaping itself as IT becomes the business. 80% of US CEOs believe they could loose their jobs within 2 years if they fail to deliver measurable business gains from AI.

Across industries, one truth has become unavoidable: every company is now a digital company. Digital transformation is no longer a project, a roadmap, or a department – it is the operating environment in which modern organizations must compete. The most successful enterprises are those where business goals and technology goals are indistinguishable, and where leadership teams understand that technology is not an enabler of strategy but a driver of it.

The data is unequivocal. Global IT headlines point to the same conclusion: digitization, AI, cybersecurity, analytics, and cloud are reshaping markets at a pace that outstrips traditional management models. At the same time, CEOs and CIOs face intensifying pressure to deliver revenue impact, cost efficiency, and organizational agility. The companies that thrive will be those that build digital leadership capacity – not just digital infrastructure.

This article synthesizes the most important insights from GIIMs global surveys, CEO outlooks, and IT leadership research to help executives understand the forces reshaping their organizations and the capabilities required to lead through them.

The New Normal: Technology Is Reshaping Markets – and Itself

The global IT landscape has entered a period of simultaneous transformation. Technology is reshaping industries while IT organizations themselves undergo reinvention. AI has surged to the top of both management concerns and investment priorities, overtaking security for the first time in more than a decade. Security, analytics, cloud, and software development remain perennial priorities, but AI now sits at the center of strategic decision‑making.

Budget trends reinforce this shift. Cloud spending continues its steady rise, while employee‑related spending declines as organizations automate, digitize, and restructure work. Talent shortages persist, forcing companies to invest in technology to manage dispersed workforces and serve customers more efficiently.

Executives overwhelmingly agree that technological innovation is the global force most likely to impact their organizations in the coming decades. Yet fewer than half believe their companies are prepared for the pace of change.

The CEO Outlook: Constant Change Is the Leadership Mandate

Today’s CEOs face a leadership paradox: technology is accelerating faster than organizations can adapt, yet the responsibility for navigating this change increasingly rests with the C‑Suite.

Nearly two‑thirds of IT leaders report that:

Their success is measured directly by revenue, cost, and strategic alignment
They are more focused on profitability than ever
They now work closely with CEOs and expect that collaboration to deepen

More than three in five IT leaders say they are active partners in shaping business strategy. This is a profound shift: the CIO is no longer a service provider but a strategic co‑architect of the enterprise.

However, CEOs also identify significant risks through 2031:

The rapid pace of disruptive innovation
Talent shortages and succession challenges
The rise of substitute products and business models
Economic volatility
The need for massive upskilling and reskilling

A striking 47% of CEOs believe their organizations are not ready for the pace of technological change. The leadership implication is clear: executives must be prepared to guide their organizations through continuous transformation, not episodic change.

The Boardroom Challenge: Technology Governance Is Falling Behind

Boards recognize the strategic importance of technology – 54% list it as the top agenda item – yet many lack the structures, expertise, and governance models to oversee it effectively.

Common board-level challenges include:

Overreliance on management for technology decisions
Limited understanding of technology’s impact on the industry
Unclear governance structures
Weak linkage between technology and strategy
Insufficient stewardship of digital risk

Less than half of boards provide adequate technology oversight. As AI, cybersecurity, and digital transformation accelerate, this governance gap becomes a material business risk.

The Talent Crisis: Skills, Sourcing, and the Digital Leadership Gap

Only 35% of executives believe their organizations have the digital leadership skills required for the future. IT leaders consistently report that their teams lack the right competencies and that open positions remain unfilled due to talent shortages.

The skills required for the 21st century fall into two categories:

Broad Business Skills

Strategic thinking
Industry knowledge
Finance
Project management
Communication and collaboration

Deep Technical Skills

Cybersecurity
AI and machine learning
Data science and analytics
Cloud architecture
Software engineering
IoT and emerging technologies

Cybersecurity remains the most important – and hardest to hire – technical skill. AI and analytics have surged in importance, reflecting their central role in competitive differentiation.

The workforce transformation is profound: 95% of IT professionals believe their skills must change by 2030, and more than a quarter believe all their skills will need to change.

Organizations closing the digital skills gap are those that:

Prioritize digital upskilling and reskilling
Promote digital learning through leadership behavior
Recruit aggressively for digital talent
Establish formal reskilling programs

AI: The Strategic Accelerator – and Governance Imperative

AI is no longer experimental. It is becoming foundational to strategy, operations, and competitive advantage. By the end of 2025, most organizations plan to use AI for automation, IT operations, and decision support.

Executives expect AI to:

Improve efficiency, accuracy, and accessibility
Enhance customer experience
Expand market opportunities
Increase competitiveness
Improve product quality

Yet AI also introduces new risks. Deepfake phishing, quantum‑vulnerable encryption, and AI‑powered cyberattacks are top concerns. Organizations are responding with training, verification processes, multi‑stakeholder approvals, and AI‑detection tools.

The governance challenge is significant: 38% of organizations say the CIO is solely accountable for AI governance, even though AI impacts every function. Leading organizations implement:

Explainable AI models
Impact assessments
Monitoring of deployed systems
Clear public explanations of AI use
Strong data anonymization practices

AI will increasingly shape business strategy, and two in five organizations expect this to happen by the end of 2024.

IT’s Evolving Role: From Support Function to Strategic Partner

IT’s contribution to strategic initiatives is shifting dramatically:

34% say IT primarily supports the business
29% say IT optimizes the business
16% say IT transforms the business
12% say IT expands the business
8% say IT struggles to support the business

The CIO role has been elevated by economic conditions, with 77% of IT leaders reporting increased visibility and influence. CIOs now spend significant time with C‑level peers, shaping strategy, driving transformation, and co‑creating new business models.

The top requirements for modern CIOs include:

Transformational leadership
Business and industry acumen
Team development
Strategic thinking
Project execution
Transparency
Business partnership
Communication
Vendor management
Technology leverage (security, modernization, data, AI)

By 2026, 60% of CIOs will be measured primarily on their ability to co‑create new revenue streams.

Organizational Agility: The Differentiator of High‑Performing Companies

High‑performing organizations share two characteristics:

Organizational Readiness: They design flexibility into systems, processes, and business models, enabling rapid response to changing customer needs.

Technological Readiness: Their technology differentiates products, adapts to customer experience needs, and evolves with business requirements.

Companies that excel in both areas are far more likely to achieve revenue growth above 25%.

Conclusion: The Digital Future Belongs to the Prepared

The message for executives is unmistakable: the digital future is exciting – but only for those prepared to lead it. Technology is no longer a support function; it is the business. AI, cybersecurity, analytics, and cloud are reshaping competitive.