Hardware delays and trade uncertainty accelerate shift to digital-first IT strategies
As new US tariff policies inject volatility into global trade, enterprises are responding by accelerating their shift toward digital transformation, according to GlobalData. The research and analytics firm finds that businesses are leaning on cloud computing, artificial intelligence (AI), and automation to maintain agility amid mounting supply chain disruptions and hardware sourcing challenges.
The direct impact of tariffs, especially in the IT services space, is already being felt through rising hardware costs and delayed infrastructure projects. “Projects involving IT hardware may face disruption, and discretionary enterprise spending will take a hit,” said Siow Meng Soh, Research Director for Technology at GlobalData. “This creates a ripple effect on IT service providers, as some projects are postponed or shelved entirely.”
Siow Meng Soh, Research Director for Technology at GlobalData. “This creates a ripple effect on IT service providers, as some projects are postponed or shelved entirely.”
Yet, amid this uncertainty, Soh highlights a silver lining: enterprises are doubling down on digital transformation. “Companies that adopt cloud and AI solutions will be better positioned to navigate the storm. These technologies are key to ensuring operational resilience and responsiveness.”
Service providers are also adapting, offering cloud-based services that allow businesses to scale dynamically while reducing dependency on physical infrastructure. At the same time, AI-driven solutions—particularly agentic AI used in business process automation—are emerging as tools to lower delivery costs and improve outcomes.
Sector-specific strategies are also expected to evolve. With the US aiming for domestic reindustrialization, Soh notes that manufacturing companies will rely heavily on robotics, computer vision, IoT, and edge computing to stay competitive. “This will not be about labor-intensive factories, but about automation-driven production,” he said.
In a tightening market, Soh advises IT service providers to focus on outcome-based engagements rather than price-driven competition. “Now is the time to help clients achieve tangible value from their digital investments.”