For a long time, IT strategy sat firmly in the CIO’s domain, while CFOs focused on financial oversight. But in 2025, that division no longer works. Technology is no longer just a cost centre—it’s a key driver of business growth, operational efficiency, and risk management. As IT budgets grow, so does the pressure on finance leaders to ensure every investment delivers measurable value.
Global IT spending is forecasted to hit $5.1 trillion in 2025, a clear sign that organisations are prioritising digital transformation. However, the real is making sure those investments actually move the business forward and that’s where CFOs need to step in.
The CFO’s Expanding Role in Technology Strategy
Gone are the days when finance leaders could take a backseat on IT decisions. According to recent research, 76% of CFOs believe digital transformation is critical to achieving their company’s strategic goals. The shift is driven by several factors.
First, technology investments are now some of the largest financial commitments a company makes. Without financial oversight, businesses risk pouring money into tools that don’t align with long-term objectives. Secondly, cybersecurity threats have skyrocketed, with data breaches costing an average of $4.45 million per incident. IT security is no longer just a technical issue—it’s a financial risk that CFOs need to mitigate.
There is also the ever-evolving landscape of regulatory compliance. Data protection laws are tightening, and finance leaders must ensure that IT investments not only improve operations but also keep the business compliant. A misstep in compliance can lead to hefty fines and reputational damage. Both of which fall under the CFO’s remit.
How CFOs Can Ensure IT Investments Deliver Value
Technology spending should never be a checkbox exercise. For CFOs, the goal is to ensure that every technology decision supports efficiency, profitability, and resilience, not just approve the IT budgets.
One of the most effective ways to achieve this is through cost-benefit analysis. Every IT project should be evaluated in terms of direct and indirect financial impact. Automation, for example, has the potential to lower operating costs and boost productivity, but the real question is: How long will it take to see a return? Similarly, cloud solutions offer flexibility and scalability, but CFOs must assess whether migration costs and integration challenges outweigh the benefits.
Success is about monitoring technology’s impact over time. That’s why CFOs should establish KPIs to track whether IT initiatives are delivering results. Cost reductions, efficiency improvements, and revenue generation should all be measurable. If a tech investment isn’t delivering value, finance leaders must adjust strategy quickly rather than allowing spending to spiral unchecked.
Striking the Right Balance Between Cost Control and Innovation
CFOs are naturally cautious about unnecessary spending, but in today’s digital-first world, being too risk-averse can be just as damaging as overspending. Cutting costs on IT investments may provide short-term savings, but failing to invest in future-proof technology can leave a business vulnerable to disruption.
A balanced approach is key. CFOs should ensure IT budgets prioritise high-impact projects while eliminating unnecessary expenses. Effective vendor management is also crucial—negotiating better contracts and ensuring service providers deliver real value can significantly improve ROI.
Another way to optimise IT spending is by fostering collaboration between finance and IT teams. The CFO-CIO partnership is now more critical than ever. When finance and technology leaders work together, IT investments become strategic business enablers, rather than just operational expenses.
The CFO’s Strategic Role in IT: Looking Ahead
Technology investments are no longer just an IT department concern. They directly impact financial performance, which means CFOs must take a leadership role in ensuring that IT spending aligns with business objectives.
By stepping up, finance leaders can turn IT investments into a source of competitive advantage, rather than just another cost to manage. They can drive digital transformation, improve operational efficiency, and safeguard the company from cybersecurity threats.
The question is no longer if CFOs should be involved in IT strategy—it’s how much influence they’re willing to have.
