Enterprise IT Spending Sentiment Fell in Late 2026
Decision-makers tightened budgets for traditional software and services as they re-prioritized AI investments.
Updated on Oct. 5, 2026 in Software
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Enterprise IT decision-makers moderated their technology spending plans for the second half of 2026. A survey of 1,681 global participants reveals a decline in sentiment toward traditional software categories, including IT consulting and outsourced services.
Why it matters
Organizations are actively shifting capital away from legacy vendors to accommodate emerging generative AI priorities. This contraction in traditional IT budgets suggests a tightening in the broader software services market as companies recalibrate their technical infrastructure for the current cycle.
The overall Net Score for technology spending stands at 17%, with Robotic Process Automation (RPA) falling to 18% from 23% in October 2025. Conversely, security software is projected to grow at 8.1%, outpacing the 4.0% projected growth for broader enterprise software.
The players
Infosys
An IT services and consulting firm that holds a -6% Net Score in both IT consulting and outsourced IT sectors.
Cognizant
A provider of IT services and consulting with a 11% Net Score in consulting and 5% in outsourcing.
Zscaler Inc.
A cybersecurity firm specializing in cloud-based network security that maintains a 30% Net Score.
Cloudflare Inc.
A web infrastructure and security company that holds a 30% Net Score.
The details
The downturn reflects a pivot away from legacy software vendors toward generative AI models. Robotic Process Automation — software that uses scripts to perform repetitive digital tasks — saw decreased sentiment as firms cut spending on mature automation tools. IT consulting and outsourced IT currently report Net Scores of -3% and -5% respectively, signaling widespread reductions in external service expenditures.
Timeline
October 2025: RPA Net Score was 23%.
October 2, 2026: End of data collection period.
H2 2026: Period of slowed enterprise technology spending.
The Tech Race
The divergence in growth projections for security software versus legacy services highlights a bifurcation in enterprise priorities. While incumbents like Zscaler and Cloudflare continue to command strong interest, traditional IT consultancies are increasingly struggling to justify their recurring service contracts.
The industry-wide shift will likely result in longer procurement cycles for traditional software and reduced headcount for IT consulting projects. Organizations are expected to prioritize vendors that can demonstrate direct alignment with generative AI capabilities throughout the remainder of 2026.
The takeaway
IT managers should watch for continued budgetary consolidation as spending shifts toward security and AI-integrated platforms. Future performance updates in late 2026 will confirm whether the decline in consulting and RPA spending is a temporary adjustment or a long-term contraction.
Further reading
For a deeper look into changing demand for enterprise tools, visit Software.
Source note: This article includes information reported by Techstrong IT.
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