CFOs shift from IT cost-cutting to strategic investment

Dubai: Heard from several cyber leaders and seasoned CFOs that a quiet but significant shift is taking place in boardrooms across industries. Chief financial officers are rethinking how they approach information technology. What was once seen as a necessary operational expense is now viewed as a strategic lever capable of shaping competitiveness, resilience, and long-term profitability.

In the past, IT budgets were among the first to face scrutiny during downturns, often treated as support functions rather than contributors to enterprise value. Today’s CFOs say that mindset no longer fits modern business realities. Digital infrastructure, automation, analytics and cybersecurity have become as essential to performance as supply chains or sales teams. The new view: IT is not a cost to control but a platform for growth.

“Technology has evolved from back-office plumbing into the backbone of strategic growth,” one CFO said. “Our job in finance is to ensure every pound we invest in IT delivers measurable value — productivity gains, revenue opportunities, risk reduction or better decision-making.”

This performance-focused lens reflects the broader transformation of the finance function. More CFOs now work closely with CIOs, assessing technology not just for its technical attributes but for its financial impact. Automation and machine learning are increasingly justified not only for labour savings but for enabling scale without equivalent cost increases. Advanced analytics, meanwhile, help leaders make faster, more accurate decisions — often worth far more than a software licence.

Productivity remains central. Organisations that adopted automation early report better accuracy, fewer delays and the ability to redeploy staff to higher-value tasks — attractive advantages in an era of inflation and tight labour markets. “Technology helps us convert fixed costs into variable ones,” another finance chief said. “It gives us flexibility in uncertain conditions.”

Cybersecurity, once seen as a specialist IT issue, is now a top financial priority. Ransomware, data breaches and compliance failures all carry direct financial consequences. “Cyber risk is financial risk,” many CFOs now argue, seeing secure systems as vital protection for the balance sheet.

This new outlook does not mean CFOs are signing blank cheques. Financial discipline still applies. Total cost of ownership, implementation risk and payback periods continue to guide decisions. But there is growing recognition that failing to invest carries its own costs — lost market share, operational bottlenecks or slow innovation.

To manage this balance, leading finance teams are adopting more advanced evaluation frameworks, including scenario modelling, cross-functional steering committees and KPI-driven reporting to ensure IT investments deliver expected outcomes. A GRC-by-design approach — spanning concept approval, business cases, risk assessments, compliance audits, smooth transition to operations and benefit realisation — is becoming standard.

Perhaps the most notable shift is cultural. Finance leaders are becoming champions of digital transformation, pushing for solutions that prepare their organisations for the future. As one CFO put it: “Technology is no longer optional. The only question is whether we invest proactively or get forced into change during a crisis.”

In conclusion: Organisations that treat IT as a strategic investment are better positioned to adapt, compete and grow. As economic volatility continues and digital disruption accelerates, the CFO’s view of technology may well determine which companies lead — and which fall behind.