Pending Tariffs Impact on IT Costs

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, according to a press release from Info-Tech Research Group.

They explain 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."

Considerations for IT Leaders

Info-Tech's research highlights several 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.

For Info-Tech Research Group's recently published resource, click here.