Stop waiting for certainty—it’s time to rewrite the enterprise IT playbook

Enterprise technology leaders face an urgent reckoning. The converging forces of protectionism and AI disruption have shattered the status quo. Tariff wars are squeezing margins, AI is starting to cannibalize traditional labor models, and legacy systems are eroding agility at the worst possible time.

Traditional, siloed, project-based tech delivery can no longer meet today’s business demands. To stay competitive, enterprise leaders must embed intelligence, resilience, and agility into every layer of their technology stack and operating model.

The cracks are widening—rethink the foundation

The pressure is real. Most enterprises are stuck in a vicious cycle—burdened by aging systems, unable to unify data for AI, underserved by transformation partners, and constrained by outdated operating models. These are not isolated symptoms; they point to deeper structural challenges, emerging just as the industry confronts a generational inflection point.

Exhibit 1: Transformation headwinds technology leaders can’t ignore

Source: HFS Research, 2025

While incremental pivots may seem prudent in uncertain times, they are unlikely to deliver the resilience and agility enterprises require. A thorough re-evaluation—and, in many cases, a significant reconfiguration—of how IT services are sourced, delivered, governed, and measured is necessary.

Services-as-Software: The way forward

The shock of trade policy shifts has amplified a deeper truth: people-powered delivery models can’t keep up. Leading enterprises are not preserving the past—they are pivoting toward scalable, AI-driven service delivery.

The shift to Services-as-Software enables (check link):

• Elastic scalability without growing headcount or offshoring risk
• Built-in intelligence, automation, and governance
• Speed to value, not just speed to launch

Rising labor costs, reshoring debates, and protectionist pressures expose the limitations of people-led models. In this environment, moving the code—not the people—is emerging as the more resilient path. This is not about removing human roles—but redesigning delivery for speed, scale, and certainty while reducing exposure to labor volatility.

Still, Services-as-Software will not happen overnight. It requires a multidimensional shift in how enterprises modernize systems, evolve operating models, and rethink talent and sourcing strategies.

Exhibit 2: The IT services rewire blueprint

Source: HFS Research, 2025

THE WHAT: Patchwork fixes will not work anymore—reinvention must be bold

Most IT organizations have exhausted quick wins. Automation and rate card negotiation band-aids have already been applied. What remains is the hard work of structural modernization:

• Core tech liberation: Modernizing ERP, cloud-enabling custom apps, and adopting composable, next-gen platforms to break monolithic bottlenecks.
• Activating data as a strategic asset: Intelligent decisions require federated data platforms, governed access, and embedded AI throughout workflows.
• Reframed cyber risk thinking: It’s not just about protection—trust, compliance, and operational continuity are necessary in a hyper-exposed environment.

The harsh reality is that many are still stuck in the ‘UI polish’ mode. Leaders must treat modernization not as a tech refresh but as a business survival lever.

Moreover, this is not about ‘transformation theater’ or blowing the budget—but about funding fewer, bolder initiatives that align with strategic outcomes. In today’s climate, every dollar must be accountable for business impact. Focused modernization, especially when it unlocks AI readiness or cost resilience, can generate quick wins and fund further change.

THE WHERE: One-size-fits-all will not cut it—industry context is everything

The same transformation levers produce different outcomes depending on the industry. Avoid generic playbooks—tailor investments to sector realities:

• Banking: Decades-old cores and risk-averse governance are slowing down GenAI and cloud adoption, even as regulators demand innovation.
• Healthcare and pharma: Regulation and data fragmentation are complicating digital care, while AI diagnostics and remote monitoring are scaling.
• Energy and utilities: The OT–IT convergence is creating new risks as sustainability targets and grid modernization demand smarter systems.
• Retail: Tariffs are tightening margins, driving rapid investment in demand forecasting, supply chain optimization, and personalized customer experiences.
• Manufacturing and industrial: Global supply chain volatility is forcing manufacturers to rewire with AI-driven planning, smart factory systems, and localized, resilient production networks.
• Travel, transport, and hospitality: Tariffs and operational disruptions are accelerating investments in predictive operations, AI-led personalization, and modernizing legacy systems for a seamless customer experience.
• Telecom, media, and technology: Hardware tariffs and shifting demand are pushing telecoms and tech firms to adopt AI-powered networks, software-defined infrastructure, and scalable content delivery platforms.

Each vertical has unique triggers, constraints, and timelines. The tech stack, sequencing, and operating model must reflect those.

THE HOW: Rethinking operating models isn’t optional—but foundational

Modern technology delivery isn’t about just building faster anymore; it’s about delivering differently:

• From control to coordination: Empower federated, outcome-driven teams. Architecture provides guardrails, not bottlenecks.
• From headcount to impact: Embrace agile, modular delivery models. Commercial frameworks must be outcome-based and platform-first.
• From shadow IT to shared accountability: Governance should enable speed and embed controls in GenAI-powered workflows.
• From legacy KPIs to business value: Measure in outcomes—experience, margin, speed—not just system uptime.
• From transactional sourcing to strategic partnerships: Rethink third-party engagement models to drive co-innovation, modular delivery, and measurable value—not just rate card optimization.

Rigid models are liabilities in a world where expectations shift overnight. Flexibility, accountability, and interoperability are now non-negotiable.

The Bottom Line: The time for rewriting the enterprise IT playbook is now.

Protectionism and AI are not temporary shocks. They are the start of a new normal. Leaders waiting for complete clarity will lose valuable ground. Those that act now—with urgency, vision, and grit—can turn disruption into a durable advantage.

Enterprise technology organizations must stop seeing transformation as a roadmap item and treat it as an existential imperative. This goes beyond surviving the next quarter—it’s about being relevant in the next decade.

If you need support across any part of the rewire journey, reach us at enterpriseservices@hfsresearch.com.