Capgemini: Businesses Shift Strategies Amid Uncertainty

Capgemini’s latest report, Navigating Uncertainty with Confidence – Investment Priorities for 2025, examines how global policy shifts, technological advancements, rising protectionism and the green transition are shaping corporate strategies.
By analysing these trends, the study offers insights into how businesses are adapting to a changing global landscape.
The findings reveal that UK organisations are actively mitigating risks in their supply chains by reducing dependence on China. Almost eight in 10 businesses are diversifying sourcing to other emerging markets, while 63% are engaging in "friendshoring", which involves relocating production to allied nations.
This trend is set to expand in 2025 as companies modernise supply chain models and digital infrastructure to prioritise sustainability and circularity.
Shifting priorities
Capgemini’s Research Institute surveyed 2,500 executives from companies across 17 countries, spanning industries such as automotive, banking, telecoms and retail.
The research, conducted in late 2024, reveals increasing optimism about organisational growth in 2025. A significant 62% of leaders feel confident about their company’s future, a marked rise from 56% last year and 42% in 2023.
However, their confidence in the global economy remains cautious, with only 37% expressing optimism about the wider operating environment.
Despite economic uncertainties, 50% of businesses plan to boost investment in 2025. This is largely driven by a focus on improving efficiency, resilience and competitiveness.
Cost-cutting remains a priority, with 56% of leaders prioritising reductions over revenue growth. Still, many view investment as essential for navigating the challenging landscape.
Aiman Ezzat, CEO at Capgemini, explains: “As we look to 2025, business leaders are navigating uncertainty with an attitude of confidence and resilience – two qualities that our research shows they are looking to instil in their organisations through technology investment.
"Technology has a key role to play to improve competitiveness and productivity, while reducing costs and making all-important efficiency gains. With a focus on innovation, supply chains and sustainability – which is increasingly being harnessed for its value-driving potential – leaders will set themselves up to succeed in an uncertain environment and build resilient, adaptable organisations.
"Crucially, this will help shape a more innovative, sustainable and inclusive global economy.”
Reinventing supply chains to reduce risk
The report highlights a growing trend toward supply chain transformation as companies look to address risks associated with tariffs, trade disputes and geopolitical tensions. Globally, seven in 10 executives are concerned about the impact of rising tariffs on competitiveness, while nearly two thirds are preparing for potential global trade wars.
To counter these threats, organisations are diversifying sourcing and production. Friendshoring and investment in emerging markets have become central to these strategies.
For instance, nearly three-quarters of executives confirm plans to reduce reliance on China by strengthening partnerships in other regions. Similarly, 63% of businesses are increasing their supply chain budgets in 2025, representing an average investment growth of 9.4% compared to 2024.
Advances in technology, including AI and the Internet of Things (IoT), are playing a critical role in these transformations. These tools are being integrated into supply chain operations to improve decision-making, enhance efficiency and support sustainability objectives.
Sustainability as a competitive edge
Sustainability is increasingly being recognised as a core driver of business value.
In 2025, 62% of organisations intend to expand their sustainability budgets by an average of 10.5%. Climate technology, including investments in hydrogen, renewables, batteries, nuclear power and carbon capture, dominates these spending plans.
Batteries, in particular, are seen as the leading climate tech investment, with more than half of respondents ranking them among their top three priorities. Solar energy follows closely, especially within the automotive and manufacturing sectors.
Other areas of focus include sustainable research and development (R&D), biodiversity conservation and water resource management.
Aiman notes that sustainability’s role is evolving beyond compliance: “With a focus on innovation, supply chains and sustainability – which is increasingly being harnessed for its value-driving potential – leaders will set themselves up to succeed.”
AI drives tech investments
The report also reveals a surge in technology investments, particularly in AI and generative AI. Nearly 75% of executives rank these technologies among their top three priorities for 2025.
US organisations are expected to lead the charge, with 84% of American executives citing competitiveness as a key motivator for tech investment. European companies, by comparison, lag slightly, with 64% prioritising similar initiatives.
The acceleration reflects the growing belief that technology is essential for resilience and innovation. AI is expected to improve decision-making processes, reduce costs and enhance operational efficiency, making it a vital part of organisations’ strategies for the year ahead.
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