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IT budgets 2026 – Investing to lead or just to keep up

Written by Luisa van Dongen | August 18, 2025
The year 2026 will determine the strategic role of your IT: Will it remain a cost center or become a driver of innovation? This article explains which investments help IT leaders secure resilience, create differentiation, and strengthen long-term viability.
 

Setting priorities for your 2026 IT budget

In 2026, IT leaders face a crucial decision point. Based on a global survey, Forrester provides recommendations on where IT decision-makers should allocate their budgets – and where not to.

On the one hand, a volatile environment demands stability, security, and efficiency. On the other hand, technologies such as artificial intelligence (AI), cloud architectures, and automation offer the opportunity to reposition IT – from a service provider to an active driver of innovation.

According to Forrester, more than half of IT leaders worldwide plan to increase their budgets in 2026 beyond the IMF’s projected inflation rate of 3.6%.

Other studies, such as Lünendonk’s 2025 survey (only available in German) in the DACH region, warn that technical debt, legacy infrastructures, and a shortage of skilled workers restrict flexibility.

The core question is: Where should you invest – and why?

Must-have investments for resilience – Security and stability

1. Cybersecurity & risk management

Business Impact: Protection against operational disruptions, compliance breaches, and rising liability risks.

Forrester data: 43% of companies plan budget increases in this area.
Study insight: According to the Lünendonk study, 97% see security and regulatory requirements as the main drivers of their modernization projects.

Recommendations:
• Build Zero Trust architectures
• Implement AI governance for generative tools such as Copilot or ChatGPT
• Establish clear policies and tools to address “Bring Your Own AI” risks (e.g., Securiti AI Governance, SentinelOne, Microsoft Purview)
• Conduct training for secure use of external AI tools

2. Cloud infrastructure with a balanced approach

Business Impact: Flexible scaling with optimal governance.
Forrester data: Over 75% of companies will increase their spending on public and private cloud services in 2026.

Recommendations:
• Define public and private cloud strategies according to use scenarios
• Consider repatriation for stable workloads with high data sensitivity
• Control cloud costs through automated monitoring and tagging

Trend: Many companies are replacing “cloud-first” with “cloud when it makes sense” – also for cost reasons.

Opportunity investments – Creating differentiation

3. AI & data infrastructure

Business Impact: Automation, faster decision-making, and competitive advantage.
Forrester data: Over 75% of decision-makers expect data growth, with 41% anticipating growth above the inflation rate – mainly driven by AI applications.
Study insight: According to the Lünendonk study, 74% expect AI to detect security gaps in legacy systems, but only 24% are already using it for that purpose.

Recommendations:
• Build central, structured data platforms – without a clean data foundation, even the best AI will fail
• Evaluate AI governance tools (e.g., Dataiku, IBM, Coralogix)
• Link AI projects to specific business KPIs
• Promote data literacy and AI readiness among employees through training

4. Software consolidation & process standardization

Business Impact: Less tool sprawl, lower costs, and improved user experience.
Forrester data: 75% of companies will increase their software budget in 2026 – with CRM and DAM as the biggest drivers.

Recommendations:
• Standardize Office templates and document processes company-wide
• Identify and strategically eliminate redundant tools
• Centralize DAM systems to ensure content governance and brand standards

Practical tip: Go with all-in-one solutions that meet a variety of business needs. For example, the empower® Suite for Microsoft 365 brings together many features that companies often manage through separate tools and add-ins. By switching to a single suite, you can cut costs and reduce the time and effort spent on IT administration.

Future-focused investments – Testing innovation without risk

5. Technology pilots with measurable added value

Business Impact: Prepares organizations for the next technological leaps.

Recommendations:
• Pilot cross-functional and cross-platform AI agent orchestration
• Test edge intelligence in manufacturing or logistics
• Identify and test use cases for autonomous processes, such as in warehouse operations
• Clearly define pilot boundaries, measure success, and document lessons learned

Reality check: According to the Lünendonk study, AI solutions are still rarely used in IT modernization. For example, only 8% of companies are advanced in automated code analysis and optimization with AI, 5% use AI for new code generation, and 22% for documentation of legacy systems or knowledge management – potential remains untapped.

Legacy systems & outdated processes – Tackling bottlenecks

Business Impact: Tie up resources, prevent new processes, and increase risks.
Figures: According to the Lünendonk study, 62% see urgent modernization needs for business-critical systems.

Recommendations:
• Check whether maintenance can be outsourced to free up internal resources
• Ensure structured knowledge transfer, for example through AI-assisted documentation
• Allocate budget consciously between value preservation and innovation

FAQ – How should I prioritize my IT budget in 2026?

This quick budget map can help with strategic decisions:

Resilience (Mandatory)
Goal: Stability & security
Recommendation: Zero Trust, governance, hybrid cloud

Differentation
Goal: Increase innovation & productivity
Recommendation: Data platform, AI applications, software standardization

Future-proofing
Goal: Test new technologies
Recommendation: Focused tech experiments with measurable benefits

 

Conclusion – 2026 is the year of IT leadership

Start a structured investment review. Evaluate your IT projects in terms of resilience, differentiation, and future readiness. Check where legacy software, rigid processes, or poor-quality data prevent the use of new solutions – and slow your progress. Invest where technology delivers real value. Identify the most promising use cases for your business.

Those who reduce legacy, invest in resilience and differentiation, and experiment boldly but with focus, will position IT as a strategic partner to executive management.