Tech leaders are resilient against budget constraints

Amid financial pressures and shifting priorities, Ireland’s technology leaders are focusing on quality, efficiency and strategic investment to stay competitive in a complex world, writes Ronan Walsh

Technology leaders in Ireland are steering their organisations through a period of considerable disruption driven by economic challenges, geopolitical tensions and rapid technological advancements.

In the face a complex array of challenges, these leaders remain resilient and optimistic, pressing ahead with investments in cybersecurity, cloud infrastructure, artificial intelligence (AI) and other emerging technologies.

The EY Ireland Tech Leaders Outlook Survey 2025 reveals that, despite financial constraints, there is a clear focus on value delivery and purposeful transformation.

Also high on the agenda is the need to reduce operating costs and a growing acknowledgement of quality as a competitive differentiator.

Geopolitical turmoil, economic conditions and the inflationary pressures of recent years appear to be impacting IT spend, with just 34 percent of technology leaders surveyed in Ireland anticipating a budget increase in the next two years, down from 46 percent in 2023.

Nineteen percent of respondents cite limited budgets as one of the most significant challenges they face this year, up from 11 percent in 2023.

This reflects a growing sense of caution and a broader trend of tightening financial resources that may have implications for IT strategies and operations.

As organisations grapple with budgetary constraints, technology leaders need to manage their financial limitations while also seeking opportunities for investment aligned with business objectives.

Improving efficiencies

The analysis of budget concerns reveals a shift in both sentiment and priorities. With a clear focus on improving efficiency and reducing operating costs, many organisations have deprioritised investment in emerging technologies.

This may be driving a marked drop in relation to the number of technology leaders planning or executing transformation programmes—at 31 percent, down from 44 percent in 2023.

The decline can be attributed to the need for immediate cost control rather than long-term investment in transformation, which often requires substantial financial resources.

Interestingly, the primary motivations for those seeking transformation have evolved, shifting towards the need to offer better products and services.

Sixty-three percent of our respondents identified this as the primary driver for transformation, up from 46 percent in 2024.

This trend reflects a growing recognition of quality as a competitive advantage in a challenging market.

Levelling capacity

Our survey revealed a dramatic drop in the number of technology leaders anticipating an increase in their IT capacity and capability over the next two years, with 76 percent either planning to maintain current staffing levels or potentially downsize their workforce.

Despite ongoing challenges in attracting, hiring and retaining the right talent—frequently cited as the top challenge facing technology leaders in Ireland—budget constraints mean it is now essential to retain current employees.

This approach helps mitigate the expenses associated with recruiting and training new personnel.

Further, technology leaders may be concerned about a possible global economic downturn or the potential for AI to have a plateauing effect on staffing requirements in the years ahead.

Ultimately, they must balance the requirement to meet operational demands today with the need to invest in future talent to maintain competitiveness.

Delivering value

In a time of constrained budgets and shifting priorities, Ireland’s technology leaders remain pragmatic yet forward-looking.

While long-term transformation may be taking a back seat for now, there is a sharper focus on quality, efficiency and strategic investment.

This reflects a sector adapting with resilience and readying itself to deliver value in an increasingly complex and uncertain environment.

Ronan Walsh is Consulting Partner and Head of Technology Consulting at EY Ireland