Asia-Pacific enterprises shift to cost-effective tech amid US tariffs, IDC report finds
A new IDC report titled The Impact of US Tariffs on Asia/Pacific Enterprise Software in 2025 reveals that technology buyers across the Asia-Pacific region are adapting to evolving economic pressures by prioritizing strategic cost control measures over reactive cuts.
Amid rising uncertainty from shifting US tariff policies, enterprises in the region are seeking cost-effective alternatives, delaying major tech investments, and increasingly favoring cloud-based and SaaS solutions to mitigate risk and maintain operational resilience.
Strategic over reactive: how Asia-Pacific businesses are adapting
IDC Associate Research Director Abhishek Kumar commended the cautious but thoughtful response from regional firms. “It is heartening to see that Asia-based businesses avoid knee-jerk cost-cutting methods and instead adopt a more strategic cost control approach in navigating the economic turmoil,” he said.
Businesses are looking for predictability in pricing, which has opened opportunities for local and regional technology vendors to displace previously dominant global providers seen as more exposed to global tariffs. Kumar emphasized the need for tech providers to reassure clients through transparent communications and clarity in pricing and product development.
Vendors must communicate clearly amid market shifts
The report urges global technology vendors to focus on strengthening ties with channel partners and clients, especially as buyers become increasingly wary of potential cost surges or service disruptions. Companies that provide transparency and flexibility will be better positioned to retain trust and market share in this volatile environment.
The Impact of US Tariffs on Asia/Pacific Enterprise Software in 2025 highlights the current attitudes of Asia-Pacific buyers and their long-term strategies for navigating technology procurement in a shifting trade landscape. Though the broader economic effects of US tariffs are still unfolding, the report centers on immediate reactions from Asia-based enterprises.
