Despite ongoing economic and geopolitical disruption, CFOs are planning significant technology budget increases, viewing digital investments as crucial for growth and efficiency, according to Gartner, Inc.
A Gartner survey of 301 CFOs and other senior finance leaders, conducted from September through October 2024, found that 77% of respondents plan to boost spending in the technology category with almost half 47%) of CFOs intending to increase spending by 10% or more in 2025 compared to last year (see Figure 1). The results underscore the critical role of technology in driving profitable growth and efficiency across industries.
Conversely, spending on staff compensation is trending downwards, with only 61% of CFOs planning to increase average employee compensation in 2025, compared to 71% in 2024 and 86% in 2023. The proportion of CFOs planning to boost average employee compensation by 10% or more fell from 16% in 2023 to 11% in 2025. While 70% of respondents planned increases of 4% to 9% in 2023, only 50% are planning the same amount in 2025.
“The continued focus on technology aligns with developments in traditional and generative AI, which promise to drive new offerings, enhance decision-making, and boost productivity,” said Randeep Rathindran, Distinguished VP, Research in the Gartner Finance practice. “Although the cooling labor market gives organizations more negotiating power on compensation, CFOs should remain sensitized to the potential risks of attrition and low engagement as prices for household necessities remain stubbornly high.”
Figure 1: Planned Changes to Average Enterprise Budgets in 2025
Source: Gartner (February 2025)
Technology spending takes priority
Most sectors are prioritizing technology spending in 2025. In the retail sector, cost of goods sold (COGS) and compensation are likely to see increases as organizations aim to enhance product quality and customer interactions. Meanwhile, in the banking sector, compensation and external services are also prioritized to attract technical talent and outsource nonstrategic work.
“Investing in technology is no longer a choice but a necessity for companies aiming to maintain a competitive edge,” said Rathindran. “The consistent increase in technology budgets across sectors highlights the ongoing strategic shift towards digital transformation as a driver of innovation and efficiency.”
Collaboration between CFOs and CIOs is essential
Organizations have been sustaining this high pace of technology spend increases over time — 50% of CFOs had already planned to boost the technology budget by 10% or more last year, and 43% planned the same in 2023.
“To maximize the value of technology investments, CFOs must collaborate with C-suite peers by driving technology investment discipline and building effective partnerships with CIOs,” said Rathindran.
