Enterprise Technology Investment Shifts Toward Iterative Optimization, 'Big Bang' Deployments Fade
According to the latest Grant Thornton research, about 70% of business leaders view resource optimization as their top priority for technology investment this year. As technology spending continues to rise, enterprises are shifting from 'big bang' large-scale deployments to more flexible iterative methods to achieve faster value and improve long-term profit margins. Gartner forecasts global IT spending will reach $5.43 trillion in 2025, a year-over-year increase of 7.9%.
At a Glance
- Grant Thornton research shows that nearly seven in ten (about 70%) business leaders rank resource optimization as the top priority for technology investment this year.
- The research notes that as technology spending rises, companies are learning how to optimize returns on investment.
- The report states: "The old 'big bang' deployment playbook is quickly fading. Leaders are adopting more iterative approaches to adapt quickly and improve profit margins over time."
Deep Insights
According to forecasts released by Gartner last month, global IT spending in 2025 is expected to reach $5.43 trillion, an increase of 7.9% from 2024.
Gartner Distinguished VP Analyst John-David Lovelock said in a press release at the time: "While surging global uncertainty has caused enterprises to pause on new spending, this impact is offset by ongoing AI and generative AI (GenAI) digital initiatives."
Gartner says that amid economic uncertainty and geopolitical risks, companies are being more cautious with spending. Despite the "deteriorating environment," competitiveness remains the primary reason companies invest in technology and business transformation.
Beyond macroeconomic challenges, CFOs and other business leaders also need to address how to optimize technology investments amid rising costs.
Digital adoption platform provider WalkMe found in a study released this year that large enterprises lost an average of $104 million in 2024 due to IT inefficiencies.
The Grant Thornton report shows that the majority of executives (93%) plan to increase technology investment this year, but "competitive advantage no longer comes from large, monolithic systems."
Tony Dinola, Grant Thornton's technology modernization leader, said in the report: "Modern technology allows modular deployment. It's no longer 24- or 36-month projects; we're talking about six- to eight-week cycles. You get value faster, and if it doesn't work, you can stop."