2025 is here, and we’re sharing the seven IT trends, predictions and the latest research on the IT roadmap for the year ahead.
1. Rising IT Investment Across Sectors
Australia’s IT spending is forecasted to reach AUD $146.85 billion by 2025, an 8.7% increase from 2024 (Gartner).
Investment in Software is driving much of this growth, with spending expected to surge by 13.4%, reaching AUD $45.85 billion.
IT Services predictions show a 7.2% year-over-year increase, totalling AUD $53.41 billion.
As IT skills shortages remain challenging, bandwidth constraints persist, and businesses strive for greater efficiencies, many will lean on external third parties for consulting services and Infrastructure as a Service (IaaS).
As customers demand more seamless digital experiences, and users demand the ability to work securely from anywhere, anytime, the pressure remains on IT to invest in the right technology to future-proof the business. In 2025, the right technology will be a competitive advantage and enabler for the company.
For example, there is significant investment in technology to revolutionise care delivery and diagnostics in healthcare. Telehealth usage spiked by 60% during the pandemic, and AI is reshaping diagnostics with opportunities for early disease detection.
2. Cybersecurity ranks number one
Cybersecurity remains a top priority, especially following the significant breaches experienced by several Australian organisations. According to CRN, an estimated 64% of Australian businesses now consider cybersecurity their primary IT focus, spurred by both regulatory demands and the increasing frequency of cyber-attacks.
In 2025, more Chief Information Security Officers (CISOs) will be turning to AI-driven cybersecurity tools to streamline security operations and reduce human error. AI technologies are essential in automating threat detection and response, addressing the ongoing shortage of cybersecurity skills across the industry.
3. Rapid Adoption of Generative AI (GenAI)
Not surprisingly, generative AI adoption is set to grow in 2025, with PwC research indicating that up to 45% of Australian companies plan to integrate GenAI for customer-facing and operational tasks.
There is a risk IT need to navigate from lines of business adoption AI tooling without IT knowledge with potential security exposers.
In terms of IT team usage, GenAI will increase cloud-based AI solutions are expected to become the standard, facilitating scalability and enabling businesses to harness real-time data insights at a larger scale.
4. Strengthening Data Governance and Data Quality
With the increasing reliance on AI, data governance and quality have become indispensable for Australian businesses. According to a recent report from Adapt, organisations with well-established data governance frameworks are four times more likely to leverage AI effectively.
Poor data can lead to misguided outcomes. Therefore, strong governance and quality control have become essential for Australian organisations to maintain regulatory compliance.
5. Accelerating Cloud Migration and Hybrid Work Models
A recent study by Channel Insider found that nearly 70% of Australian workloads are expected to migrate to the cloud by 2028. Whilst cloud adoption is far from a new trend, it is a trend that continues to dominate.
Whilst there has been a noticeable shift in 2024 with return to the office policies emerging, IT supporting secure and seamless hybrid work models remain a priority in 2025. PwC research shows that nearly 80% of employees now prefer flexible working options, with companies that resist this shift facing attrition rates almost 20% higher than those with hybrid policies.
6. Skills Shortages and Growing Demand for Managed Services
Australia’s IT sector continues yet again to face ongoing skills shortages, particularly in high-demand areas like AI and cybersecurity. Many organisations increasingly turn to Managed Service Providers (MSPs) for expertise and support to address these gaps.
According to Gartner, more than 50% of Australian mid-market and corporate enterprises now rely on MSPs to deploy and manage advanced technology solutions.
7. Embracing Sustainability and Innovation Aligned with Environmental Goals
With sustainability as a strategic priority at the board level for most Australian enterprises, IT strategies must align with environmental goals. Accenture’s Life Trends report shows that over 70% of Australian consumers now prioritise sustainable practices when selecting products and services, driving companies to adopt green IT solutions.
Government initiatives and grants are also boosting the focus on advanced technology sustainably.
Wrapping it up
These seven trends highlight that Australian businesses that strategically invest in technology will be the ones who remain competitive and resilient in 2025.
With the trends pointing to stronger investments in cloud, cybersecurity, and AI, organisations that stay agile and responsive to these changes will be well-positioned to thrive in 2025.
As always, Meridian IT is here to be an extended part of the IT team, and we’re ready to support your 2025 initiatives. Please reach out if you’d like to schedule your 2025 planning session with our expert team.