ETR Data Drop

Inside the Decline: What Leaders Reveal About 2025 Tech Spend

Written by ETR Research | May 6, 2025 6:24:42 PM

The April 2025 Macro Views Survey Findings were recently released. According to respondents, enterprise IT spending is decelerating fast. Year-over-year growth projections for calendar year 2025 now sit at +3.4%, down from +5.3% in January—a steep that marks the largest quarterly drop since ETR began tracking in 2020.

While this may signal rising caution, it’s important to note that most responses were gathered prior to the U.S.’s April 2nd reciprocal tariff announcements.

 

Respondents:

The survey captured responses from a robust sample of over 1,800 technology leaders, including:

  • 28% at the C-suite level
  • 49% at the VP/Director level
  • 277 from Fortune 500 companies
  • 424 from Global 2000 firms
  • 76% based in North America

In terms of industry, more than half of respondents came from Services/Consulting, IT/TelCo, and Financials/Insurance, collectively account for 54% of respondents.

Downward Revisions Across the Board

Respondents reported revised-down IT spending expectations compared to the January survey:

  • Midsize organizations adjusted their forecasts the most, cutting 2.3 percentage points
  • Small businesses still show the highest spending growth at 5.1%
  • Fortune 500 and Global 2000 firms now project just 2.4% and 2.2% growth, respectively
  • Financials/Insurance leads all industries with 4.6% projected growth, while Retail/Consumer plunged from roughly 4% to just 1%

Regionally, APAC saw the steepest decline, while Latin America remains the most resilient.



Balancing Growth and Cost-Cutting

Although there was a reduction in total growth, 69% of respondents still expect to increase IT spending by at least 1% this year. 

Interestingly, only 7% are planning to grow spend by bringing on new vendors. Instead, there's a modest uptick in expanding the footprint of existing vendors and adopting new capabilities from them.

However, 22% of respondents plan to reduce IT spend in 2025. The leading cost-saving strategies are:
  • Cutting staffing costs (more cited than in previous periods)
  • Delaying or halting new projects
  • Consolidating redundant vendors
  • Reducing consulting/outsourcing expenses

Additionally, optimizing SaaS licensing is gaining momentum, reaching its highest citation rate in a year—while cutting hardware or CapEx spend fell notably in priority.

Strategic Tightening, Not Full Retreat

The April 2025 Macro Views Survey findings point to a more strategically cautious IT environment. Organizations aren’t slamming the brakes on innovation, but they are being more selective, cost-conscious, and risk-aware in the face of economic uncertainty, geopolitical developments, and regulatory scrutiny.

Understanding how peers are adjusting their plans provides valuable context for navigating the road ahead. If you are looking for more Macro Views Survey data, a downloadable summary is now available.