Many SMEs spend a significant amount of time dealing with IT problems and incidents, which can distract them from focusing on core business activities. Research conducted by Curry’s found that UK workers lose an average of 46 minutes each day due to preventable IT issues. Additionally, a staggering 84% of UK businesses reported cyber attacks in 2024, highlighting the urgent need for SMEs to reassess their IT strategies.

We believe that SMEs need their IT to boost productivity, enhance collaboration, and create opportunities. However, we also want to ensure that IT does not become a source of risk or vulnerability. What does this mean as we approach 2025?

 

Current IT challenges for SMEs

SMEs often face unique IT challenges, including limited budgets, cyber security threats, and the need to keep up with rapid technological advancements. These issues can hinder their ability to compete with larger enterprises and impact their overall productivity and growth.

  • Keeping up with technology: The rapid pace of tech advancements pressures SMEs to update IT infrastructure, as new software often demands stronger hardware to function properly. Without these upgrades, users may struggle to run the latest software effectively or at all.
  • Cyber security: SMEs are increasingly being targeted by cybercriminals due to perceived weaker security measures. Investing in robust cyber security solutions is critical to stay ahead in the current threat landscape.
  • Compliance regulations: New regulations, such as those related to data privacy and security, require SMEs to stay informed and ensure their IT practices are compliant to avoid penalties or reputational harm.
  • Embracing AI: Integrating AI into business processes can significantly improve efficiency, but SMEs risk stagnation if they don’t adopt accessible AI solutions.
  • Knowledge gaps: Many SME owners and employees may not have a deep understanding of the latest technologies, which can hinder effective implementation and use.
  • IT not aligning with business goals: Without a clear strategy for aligning IT with business objectives, SMEs risk investing in inappropriate technologies or failing to maximise their potential.
  • Cost concerns: Implementing IT solutions can be expensive, both in terms of acquiring the technology and training employees. SMEs, in particular, may have limited budgets for such investments.

 

Emerging IT trends in 2025

As we move closer to 2025, several trends are set to shape the future of IT for SMEs, offering both opportunities and challenges.

  • AI & automation: AI and automation are transforming business operations. SMEs can use these technologies to streamline processes, reduce costs, and improve decision-making. Using an accounting software like Xero allows you to automate invoicing, payment reminders and financial reporting.
  • Cloud computing: Cloud solutions offer scalability, flexibility, and cost savings. By migrating to the cloud, such as Microsoft 365, SMEs can access advanced technologies without significant upfront investments.
  • Cyber security advancements: As cyber threats become more sophisticated, traditional tools like basic firewalls and antivirus software can no longer keep up. SMEs need to adopt multi-layered security approaches, like EDR or Managed SIEM, to stay protected.
  • Remote working: The rise of remote working has made it essential for SMEs to invest in tools that support remote collaboration and productivity. Tools like Microsoft Teams integrate with Microsoft 365 offering chat, video calls and file sharing.

 

Strategic IT recommendations for SMEs

To help SMEs effectively leverage IT, we recommend the following strategies, which we will delve into during our upcoming webinar:

1. Optimise IT costs for growth:

  • Implement scalable IT solutions that grow with your business to avoid unnecessary expenses.

2. Assess and mitigate IT risks:

  • Conduct regular IT risk assessments to identify risks before they become issues.
  • Invest in robust cyber security measures, EDR, email security, and employee training to embed a strong culture of cyber awareness.

3. Reduce IT downtime:

  • Automate routine IT tasks to save valuable employee time and avoid human error.
  • Establish reliable IT support, such as a managed service provider, to handle incidents quickly and minimise interruptions.

4. Use technology for competitive advantage:

  • Adopt innovative technologies like cloud computing, AI, and data analytics to improve efficiency and decision-making.
  • Focus on cost-effective solutions that provide high returns on investment.

5. Align IT with business goals:

  • Develop an IT strategy that supports your overall business goals.
  • Regularly review IT projects to ensure they are aligned with business priorities and deliver value.

6. Stay compliant with evolving regulations:

  • Stay updated on changes in compliance requirements relevant to your industry.
  • Implement IT systems that facilitate compliance, such as data protection and privacy management tools.

 

Webinar: How SMEs can get more from their IT in 2025?

Are you ready to take control of your IT? Download our free webinar to learn how to implement a cost-effective IT strategy that reduces downtime, prevents disruption, and ensures smooth business operations, all while staying within a controlled budget.

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