Good news! Despite what we’ll politely call “economic turbulence” (feel free to use your own expletive laden label), new analysis from Computing reveals … drum roll … UK IT budgets are, in the main, holding steady—and some are even rising!
THE NUMBERS AND THE REALITY
Almost half (42%) of IT leaders surveyed reported real-terms IT budget increases, and over a third (39%) say their budgets are stable.
A reason to pop the champagne?
Maybe not.
Chiefly because: who has the budget for bubbly (LOL)? But also, because:
- Just under a fifth (19%) have seen budgets decline (particularly in education, charities, and the public sector (we’ll come back to this sector soon). This means that for over half (58%), budgets are either static or reduced.
- Even for those with a bigger budget, behind the optimistic headlines, cost and complexity continue to mount! Every pound spent is scrutinised more intensely than ever, leaders must wring maximum value out of each investment. IT spend is no longer simply overhead; it’s the essence of competitiveness, growth and even survival.
When budgets plateau and, simultaneously, business ambition accelerates, strategic risk is never far behind and, at a time where every organisation is pushing a “digital first” narrative, turning lean resources into genuine, measurable transformation is vital. In other words, more money to spend equals more pressure to demonstrate every greater ROI (return on investment)
FOLLOW THE MONEY: TOP IT PRIORITIES
So how are UK IT budgets being allocated in 2025?
Computing’s research has some interesting spend takeaways:
Cloud Services: An average of 15% spend goes here (some organisations spend up to 80% of their IT budget on cloud). Challenges include rapid growth and volatile pricing (some providers have increased prices while others have reduced theirs, one CIO told me it’s like riding a rodeo bull!)
Cybersecurity: 9% of IT budgets go on security, at a time when some experts are recommending up to almost four times that (40%) for high-risk sectors! Figures from the UK government show that public sector cybersecurity spend grew by 20% between 2023 and 2024 – remember it is this sector where more leaders reported budget cuts.
AI: Almost 9 out of 10 (85%) are allocating 5% or less of their budgets on AI, suggesting that AI is largely still at the “dip our toes stage” with cautious pilots attracting minimal spend commitments. That said, 4% report allocating over half their IT budget on AI and that is probably the direction of travel.
Elsewhere … talent shortages are pushing up salaries and contractor costs, and ongoing maintenance, refreshes, EOL cycles and dealing with the “Windows 10 end-of-life circus” (as one client put it) are all accelerating reinvestment needs.
THE AI AND CLOUD COST CONUNDRUM
So, cloud expenditure continues to outpace inflation, with many providers lifting prices for UK customers in 2025, especially across data transfer, compute, and AI-enabled services. Some organisations are experimenting with hybrid models or provider switches, but for most, cloud dependence, and spend, only deepens.
AI, meanwhile, attracts lots of attention but limited funding. 85% of IT leaders allocate less than 5%, with only 4% running large-scale pilots. Even small proof-of-concepts can drive additional cloud usage and cost. Also, remember GenAI providers continue to subsidise prices to capture market share, a future price reset could impact your entire ecosystem, including non-AI workloads.
(Editor’s Note: If you’re thinking “forget the bubbly, give me something a lot stronger”, we’re heading into more positive territory, so don’t put away the ice bucket yet.)
THE PROJECT MANAGEMENT SQUEEZE
Combine these pressures, and the delivery challenge is clear: rising complexity, static budgets, talent shortages, tighter governance, and relentless scrutiny over ROI … basically it’s never been harder to be an IT Project Manager.
That’s why Project Management as a Service (PMaaS) is gaining traction.
Stoneseed’s PMaaS isn’t merely external project leadership, it’s about injecting agility, expert capacity, and proven delivery discipline precisely when needed. Stoneseed’s IT leader clients tell us PMaaS allows them to:
Scale resources on demand: ideal for migrations, upgrades, and AI pilots.
Access specialist expertise fast: bypassing recruitment delays and costs.
Protect BAU (business as usual delivery): while PMaaS teams drive transformation.
Tie spend to outcomes: aligning investment directly to project milestones.
PMaaS IN ACTION: MAKING BUDGETS GO FURTHER
Managing Public Sector Cost Pressures
For education, public, and charity sectors, where funding is especially constrained, PMaaS offers access to top project talent only when required, enabling digital progress without fixed headcount commitments.
And remember, we work closely with Councils, Charities, Universities, and Public Sector Bodies, often engaging directly with procurement and HR teams via private procurement frameworks or Crown Commercial Service frameworks. Visit our G-Cloud listing.
Cloud Migration
As cloud bills climb, PMaaS can provide seasoned cloud migration experts who balance technical requirements with commercial outcomes, containing costs and preventing disruption.
Cybersecurity Programmes
We’ve seen it and the Computing data illustrates it perfectly: boards often underfund cyber relative to risk. PMaaS brings leaders who can scope, justify, and execute security initiatives, turning technical risk into business-aligned delivery without draining internal capacity.
AI and Automation
With most GenAI projects still in proof-of-concept, PMaaS is helping organisations test, evaluate, and scale at pace, pivoting quickly if ROI doesn’t materialise. Controlled experimentation keeps innovation tied to measurable value.
WHY STONESEED?
Beyond this, our on-demand approach gives you access to experienced Project Managers, Business Analysts and PMO specialists—when and where you need them—at a predictable and scalable cost.
As an IT Project Management Consultancy Practice, we offer a full-service portfolio, including IT Technical Advisory, Business Analysis, PMO Services, and Programme & Project Delivery. Whether on-site or remote, our team has expertise across multiple technology solutions, sectors and industries, delivering Business Change, Transformation, Infrastructure, Digital and IT projects or programmes.
What are the key benefits of adopting Stoneseed’s PMaaS in your organisation?
- Ability to focus on core business
- Enhanced quality delivery
- Increased agility
- Flexibility
- Cost-effectiveness
- Expertise
- On-demand access to resources
Cost Control & Flexibility
PMaaS helps you manage costs effectively by eliminating recruitment expenses, bench time, and IR35 risks. Our straightforward pay-as-you-use model means you only pay for the resources you use—no full-time salary commitments, no fixed contracts. Scale up or down based on your project needs, ensuring you never overspend on underutilised resources.
FROM CONSTRAINT TO COMPETITIVE STRENGTH
Budgets don’t have to be barriers. The 2025 IT Project Management reality is that adaptable organisations are using flexible delivery models as strategic tools. PMaaS can transform familiar constraints, like cost, capacity, and complexity, into levers for agility, accountability, and competitive strength.
How well does your current project delivery model reflect today’s realities? Is every pound producing visible value, or are capacity gaps holding back transformation?
PMaaS is helping IT project leaders and CIOs shift from static-cost-reactivity to adaptive, results-driven delivery.
Budgets may fluctuate, technologies may shift, and AI may steal the headlines, but the fundamentals of delivery never change. With PMaaS, you’re not just managing projects; you’re managing risk, resilience, and readiness for whatever comes next.
So, how can we help you?
Call 01623 723910 or contact us here.
More about Project Management as a Service from Stoneseed
Sources:
https://www.gov.uk/government/publications/cyber-security-sectoral-analysis-2025
Stoneseed and Private procurement frameworks/Crown Commercial Service frameworks
https://www.stoneseed.co.uk/project-management-as-a-service/
https://www.computing.co.uk/research/2025/genai-big-hype-little-budget