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How Canadian IT Leaders Are Responding to Tariffs (and What You Can Do Now)

Tariffs are top of mind for businesses — and while the next wave is delayed until July, IT leaders across Canada aren’t waiting to see how things play out. Hardware. Infrastructure. SaaS. It’s all under pressure. So how are smart IT leaders adapting? They’re planning.

How IT Spend is Adapting‍

Let’s start here: Even in a climate of rising costs, global uncertainty, and tariff tension, IT spending is still projected by IDC to grow by 9% year over year. That's surprising - or is it? IT spending used to track closely with GDP growth but not anymore. Over the past few years, we’ve seen a steady decoupling. Why?

A Shift in Thinking: IT as a Recession-Proofing Tool

The business leader perception of IT has changed in recent years from cost center to a way to weather economic uncertainty.

They see opportunity to:

• Invest in automation instead of adding headcount
• Optimize infrastructure to keep costs in check
• Double down on security to reduce risk
• Explore AI tools that drive real productivity

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What IT Leaders Are Thinking About

According to IDC’s 2025 Future Enterprise Resiliency & Spending Survey, the top concern for IT leaders this year isn’t AI or talent shortages — it’s the rising cost of IT.

While CapEx spending can be timed or deferred, it’s software costs that IT leaders are paying close attention to. With more vendors moving to subscription-based and usage-driven pricing models, IT teams gain flexibility — but lose predictability. Price increases can come with little warning, and with tariffs looming, locking in long-term cost certainty is increasingly difficult.

When it comes to spending priorities during uncertain times, IT leaders are staying the course on investments that drive productivity —  AI, automation, data & analytics. Security remains a top priority, and there’s continued commitment to infrastructure optimization as a long-term strategy to reduce costs and improve efficiency.

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 8 Practical Moves IT Leaders Are Making Now

Here’s what we’re seeing in the field — the tactics that are helping IT leaders stay prepared and in control:

1. Position IT as a Recession-Proofing, Productivity-Driving Investment
What to do:

• Start conversations with leadership that frame IT spend not as a cost, but as a lever for efficiency, automation, and long-term resilience.
• Share market research from organizations like IDC that depict this trend.
• Use real examples (internal or industry-wide) that tie IT investments directly to productivity gains or cost avoidance.
• Align IT initiatives with business goals: tie infrastructure upgrades to cost reduction, automation to headcount planning, and cybersecurity to risk mitigation.
• When presenting project proposals, focus less on features and more on outcomes—like speed, scale, savings, or security.

2. Scope Projects to Focus on What Matters
What to do:

• Look at project investments through the lens of your business leaders to determine priorities
• Break large projects into phases and prioritize the elements with immediate ROI.
• Review your IT roadmap quarterly instead of annually to stay responsive to cost changes.

3. Create a Contingency Plan for IT Spending
What to do:

• Build a three-scenario budget (baseline, cost spike, delay) to guide investment decisions.
• Identify which projects can be paused, scaled back, or accelerated depending on how tariffs unfold.
• Involve finance early — align your plans with broader cash flow or capex guidance.

4. Rethink  Financing Models
What to do:

• If replacing end-user or server infrastructure, get quotes for both outright purchase and financing options.
• Consider converting large upfront costs into predictable monthly spend using DaaS or infrastructure leasing.

5. Explore Device-as-a-Service (DaaS)
What to do:

• Audit your device lifecycle and current refresh plans — what’s due to be replaced in the next 6–12 months?
• Ask vendors for DaaS quotes with flexible term lengths (24–36 months) and bundled support.
• Use DaaS to accommodate hybrid teams or growing headcount without draining capital upfront.

6. Right-Size Your Software Spend
What to do:

• Run usage audits to uncover shelfware or underutilized licenses.
• Consolidate duplicate tools across departments (e.g., project management or collaboration apps).
• Negotiate renewals early, especially for U.S.-based vendors, and ask about options for multi-year pricing protection when possible

7. Optimize Your Infrastructure for Cost and Resilience
What to do:

• Identify servers or workloads that could be consolidated, virtualized, or shifted to the cloud.
• Run a power consumption audit — upgrading to energy-efficient servers or storage could deliver long-term savings.
• Evaluate backup and disaster recovery plans to avoid surprise infrastructure costs later.

8. Build Inventory Strategically
What to do:

• Pre-order frequently used components (e.g., switches, laptops, storage) with long lead times or high price volatility.
• Ask distributors or partners if they can hold inventory on your behalf to reduce on-site burden.

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Stay Ready, Not Reactive

Tariffs may be delayed for now, but they’re far from off the table. Smart IT leaders aren’t treating this like a wait-and-see scenario — they’re getting ahead of it.

The truth is, tariff or no tariff, the pressure on IT leaders to do more with less is only going to increase. And the organizations that come out stronger will be the ones that didn’t just brace for impact — they planned, adapted, and kept building.

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We’re here to help — no pressure, just a practical conversation about what’s next.
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