Softcat has unveiled its annual Business Tech Report 2025/26, drawing insights from nearly 4,000 public and private sector organisations. The research outlines how technology leaders are tackling transformation, regulation, and efficiency pressures in a shifting digital landscape.
Cybersecurity remains the dominant concern, with 47% of respondents identifying data security as their foremost priority. The report links this focus to the growing complexity of hybrid estates and the need to establish strong cyber hygiene before scaling AI or cloud adoption. “Good security posture and sensitive data handling form the foundation for innovation,” the report notes.
AI adoption is the second most cited priority, chosen by 46% of organisations. The findings echo recent analysis by McKinsey & Company, which observed that while nine in ten businesses use AI, many still lack deep integration into core workflows. Softcat says agentic AI — systems that act with greater autonomy — is reshaping how teams think about automation, keeping people at the centre of progress.
End-user experience remains a critical focus as businesses transition from Windows 10 to Windows 11. 37% are concentrating on devices and software upgrades, while more than half of those prioritising digital workspace strategy want to extract greater value from existing technology investments before expanding further.
Governance, risk, and compliance (GRC) has also emerged as a strategic focus, with 36% listing it as key to managing hybrid environments. In networking, organisations are increasingly turning to AI-driven systems to anticipate issues, optimise performance, and support sustainability goals. Observability — once a buzzword — is now viewed as the backbone of network modernisation.
Sustainability is another defining theme. The report shows that 75% of respondents have an active sustainability strategy, and 80% would consider buy-back or trade-in schemes. GreenOps — the integration of sustainability practices into daily digital operations — is gaining traction as companies seek to balance regulatory expectations with cost efficiency and innovation.
Procurement priorities are shifting too. Competitive pricing (83%) leads decision-making, followed by customer service excellence (77%) and specialist expertise (68%). The Procurement Act 2023, which came into effect in February 2025, is also shaping procurement frameworks, requiring businesses to consider public benefit when awarding contracts. Softcat says this change has led many organisations to seek partners capable of demonstrating social value.
Across public and corporate sectors, managed services are expanding rapidly — particularly among mid-market organisations — with strong growth in cybersecurity, AI, and end-user device management. In the public sector, 65% of executives are prioritising technology to drive innovation, while 59% cite cost control as their top concern. Despite budget constraints, councils and housing associations are using data and IoT tools to maintain resilience and service quality.
The report follows Softcat’s first acquisition — Leeds-based data consultancy Oakland — which bolsters its analytics capabilities. Chief Technology Officer Andy Crossley said the partnership enhances customers’ ability to manage data effectively and unlock AI’s full potential.
Softcat CEO Graham Charlton said the findings capture a pivotal moment in digital transformation: “Everyone at Softcat is committed to helping our customers navigate change with confidence, so I’m delighted to share this year’s Business Tech Report. It’s an essential overview of the trends and technologies shaping digital transformation today, and I hope it can help you plot a smooth course into the future.”
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