How IT Leaders Can Control Tariff-Driven Rising Costs During Economic Shifts: New Insights From Info-Tech Research Group

The global research and advisory firm has released a new report outlining proactive cost optimization strategies for IT leaders facing rising costs due to evolving tariff policies. The firm's research insights provide actionable guidance to help IT departments manage financial risks, secure supply chain stability, and optimize IT spending in response to shifting trade regulations.

TORONTO, March 7, 2025 /PRNewswire/ - As tariff policies continue to fluctuate and change on goods from key trading partners, organizations must prepare for rising IT costs and supply chain disruptions. Info-Tech Research Group's recently published resource, Accelerate IT Cost Optimization in a Tariff-Strained Economy, provides IT leaders with a framework to mitigate financial risks and ensure business continuity in a volatile economic environment.

The firm explains in the report that the imposition of tariffs on imported goods could impact not only sectors like manufacturing but also IT operations, particularly hardware and infrastructure investments. While cloud services are not directly subject to tariffs, rising costs in computing hardware and devices used by cloud providers may lead to increased pricing for IT services. Organizations are advised to take a proactive approach to financial planning to effectively navigate potential challenges.

"IT departments are often overlooked when organizations evaluate the financial risks of tariffs, but they are just as vulnerable to increased costs as any other function," says Jennifer Perrier, principal research director at Info-Tech Research Group. "To mitigate these risks, IT leaders must closely assess their procurement strategies and engage in proactive budgeting. Hardware and infrastructure investments are likely to become more expensive, and even cloud services could see indirect price increases as providers adjust to higher costs."

Key Considerations for IT Leaders:
Info-Tech's research highlights several critical strategies IT leaders can implement to navigate the financial challenges posed by evolving tariff policies, including the following:

• Understanding price vulnerabilities – Assess their exposure to price increases, especially concerning computing hardware, networking equipment, and data storage devices.
  
  
• Engaging with finance leadership – Open discussions with CFOs are critical to align IT budgeting with overall corporate cost optimization strategies.
  
  
• Identifying cost-cutting opportunities – While cost optimization is preferable to outright budget reductions, IT teams should be prepared to identify non-essential expenses that can be streamlined.
  
  
• Reviewing sourcing alternatives – Diversify technology suppliers and understand the full impact of tariffs on the supply chain to help mitigate financial risks.
  
  
• Scrutinizing hardware investments – Evaluate whether accelerating planned hardware and infrastructure investments before tariffs take effect could lead to cost savings.
  
  
• Monitoring vendor pricing strategies – Understand how key software and cloud providers anticipate tariffs affecting their costs, which can provide IT departments with leverage in contract negotiations.

Tariffs introduce economic uncertainty, making it imperative for IT departments to take a proactive stance in risk management and cost optimization. Beyond short-term cost-cutting, IT leaders are advised to focus on long-term resilience by strengthening supplier relationships, negotiating flexible contracts, and investing in scalable, future-proof infrastructure.

By leveraging Info-Tech's research insights and advisory, organizations can develop clear strategies to minimize financial disruptions and maintain operational efficiency despite evolving global trade policies.

For exclusive and timely commentary from Info-Tech's experts, including Jennifer Perrier, and access to the Accelerate IT Cost Optimization in a Tariff-Strained Economy resource, please contact [email protected].

About Info-Tech Research Group
Info-Tech Research Group is one of the world's leading research and advisory firms, proudly serving over 30,000 IT and HR professionals. The company produces unbiased, highly relevant research and provides advisory services to help leaders make strategic, timely, and well-informed decisions. For nearly 30 years, Info-Tech has partnered closely with teams to provide them with everything they need, from actionable tools to analyst guidance, ensuring they deliver measurable results for their organizations.

To learn more about Info-Tech's divisions, visit McLean & Company for HR research and advisory services and SoftwareReviews for software buying insights.

Media professionals can register for unrestricted access to research across IT, HR, and software and hundreds of industry analysts through the firm's Media Insiders program. To gain access, contact [email protected].

For information about Info-Tech Research Group or to access the latest research, visit infotech.com and connect via LinkedIn and X.

SOURCE Info-Tech Research Group