Logicalis 2025 CIO Report: CIOs under pressure to deliver a return on innovation

Logicalis has released its annual CIO Report, which reveals that 95% of organisations are actively investing in technology to create new revenue streams within the next 12 months. According to the report, which surveyed 1,000 global CIOs, the CIO role is no longer focused on enablement but on shaping business strategy and driving value, with nearly all CIOs regularly reporting to the board on ROI.

This expanded mandate is heightened by the rapid emergence of new technologies. The report found that almost all organisations are exploring how next-generation technologies can specifically support commercial growth. This trend shows no sign of slowing, with artificial intelligence (AI - 95%), machine learning capabilities (93%), and Internet of Things (IoT - 89%) initiatives among the most widely adopted emerging technologies over the past 12 months.

Realising value from these investments remains a challenge. While 85% of CIOs report growing pressure for technology to demonstrate tangible business impact, many (64%) acknowledge that their next-generation technology investments have yet to deliver anticipated returns. As the gap between balancing investments and realised value intensifies, CIOs remain optimistic about the potential of these technologies.

Still, most (93%) tech leaders continue to juggle limited time and resources to ensure better business outcomes. As CIOs consider innovations that support future growth, they must continue to navigate business-critical objectives. Despite unprecedented spending on security solutions, 88% experienced cybersecurity incidents in the last 12 months last year, with 43% enduring multiple breaches raising questions about the effectiveness of security spending.

One area where they are beginning to see tangible financial results is through the integration of environmental technologies. Nine in ten (91%) CIOs have realised direct commercial benefits, and over half (53%) report these as significant. With a good track record, it is no surprise that those investing in environmental sustainability initiatives have risen from 92% in 2023 to 95% over the past 12 months.

On this year’s report, Bob Bailkoski, Global CEO of Logicalis Group said: “For almost every business, technology has become the primary engine of innovation, growth and resilience. With this dependence comes a new expectation of CIOs, they’re no longer just enablers of business strategy but drivers of commercial success. Whether through maintaining a keener focus on ROI from next-generation technologies, optimising security spending or maximising the financial benefits of sustainability initiatives, technology leaders need to seek out the right investments and partnerships that can help them deliver on their business goals.”

While most CIOs are confident that their IT spending is yielding a return, many (91%) believe there is room for improvement. As challenges around complexity, resources and performance visibility remain, the report highlights the importance of fostering strong technology partnerships to help CIOs meet this changing landscape, alleviate pressures and unlock value.

Additional findings on innovation

94% agree the CIO role is becoming a key part of shaping business strategy and direction

94% report their organisation is exploring how next-generation technology can support their commercial growth

94% of CIOs are actively seeking opportunities to incorporate AI into their business, compared to 89% last year

86% report growing pressure within their organisation to ensure ROI from AI

Additional findings on sustainability

95% say their organisation is increasing their investment in environmental sustainability initiatives and/or technologies, compared to 92% last year

94% think IT is core to the success of their organisation's sustainability goals, compared to 93% last year

93% report their organisation set clear targets to reduce the carbon emissions from our IT environment, up from 89% last year