Companies are expected to keep their overall IT spending in 2026 broadly in line with 2025 levels, but spending on technology services is set to rise as businesses seek greater support in artificial intelligence and cybersecurity, according to a new survey by Bain & Company.
Bain’s latest Tech Services Buyer Survey found that AI is emerging as a major growth opportunity for technology services providers, with firms increasingly looking for integrated solutions spanning AI, data, cloud and security.
The survey, based on responses from 280 executives in North America and Europe, found that three in four respondents expect at least 5% to 10% of their technology budgets to be focused on AI and machine learning. Some industries, including retail, institutional banking, and oil and gas, indicated that more than 20% of their tech spending could be directed toward AI initiatives.
“AI is becoming a core element of enterprise transformation and the CIO agenda,” said Megha Chawla, head of Bain & Company’s Global Technology Services sector. “As companies scale their investments, the focus is moving beyond experimentation toward how AI can support broader business priorities and create value across the enterprise.”
The report also said executives are raising expectations for productivity gains, especially in software development, testing and contact centre automation. Anticipated improvements in these areas are now estimated at around 15% to 17%.
Bain said this changing demand presents a significant opportunity for tech services firms, but only those that adapt their business models will benefit. The consultancy identified platform-based delivery, outcome-based pricing and multi-service solutions as key strategies for future growth.
According to the survey, buyers are increasingly favouring providers that can offer repeatable, scalable platforms and measurable business results instead of traditional customised, time-and-materials contracts.
The report also highlighted talent shortages as a major challenge. Skills in cybersecurity, AI and machine learning engineering, and data science were among the hardest for companies to source.
“Tech services providers that treat talent transformation as a strategic imperative — rather than a downstream HR question — will be best positioned to deliver on the converging client priorities the survey identifies” said Parvathy Kailasam, partner at Bain & Company.
Bain said firms will need to accelerate workforce reskilling, redesign roles as automation expands, and invest in skills such as creative problem-solving and sector expertise.
“The window to act is now, and the gap between leaders and laggards will widen fast. Providers that move decisively will be the ones that capture this spend shift. Those that wait risk seeing 30% or more of their revenue base erode as buyers route their budgets to firms that can deliver measurable results,” concluded Chawla.
