How is the 2025 IT & digital job market looking so far?

February 2, 2025

As we wrap up the first month of 2025 what have our experts learned?


Peoplebank Account Manager Elizabeth Fairweather shares her thoughts and predicts the trends to come


Peoplebank Account Manager Elizabeth Fairweather

As 2025 gets underway, there's a sense of cautious optimism following the IT market slump of 2024.


Many industry observers are eagerly watching to see what this year will bring. While early signs are positive, there are still areas of the market that remain unstable. Offshoring continues to be a significant concern, with roles that were once considered secure increasingly being outsourced. On top of this, the impact of AI cannot be overlooked. Yet, despite these challenges, there are clear signs of growth, with new programs receiving approval, heavy investments in projects, and exciting developments in the pipeline.


I believe this growth, despite the ongoing offshoring trend, is indicative of the IT sector expanding as a whole. According to a recent report by leading analyst firm Gartner, IT spending in Australia is projected to reach AU$146.85 billion in 2025—an impressive 8.7% increase from the previous year. This surge is being driven by substantial investments in key sectors such as software, IT services, and data centre systems, with a particular emphasis on emerging technologies like generative AI (GenAI) and cybersecurity.


Looking back, 2024 was a year focused on operational improvements, integration, and data. But what can we expect in 2025?

Innovation is set to be the key theme of the year. Many companies spent 2024 reinforcing their internal IT infrastructures, waiting for the opportunity to make significant advancements in 2025. With a strong emphasis on improving data quality in 2024, many businesses are now positioned to take a more strategic approach to AI, unlocking the full potential of their data. Cybersecurity remains a top priority, especially with shifting power dynamics in the US, growing global uncertainties, and the growing number of data breaches in recent years. As a result, businesses are placing greater focus on safeguarding their operations.


The software market is undergoing rapid transformation, becoming increasingly competitive and a key driver of innovation. To stay ahead of the technological curve, more companies are turning to off-the-shelf applications and cloud platforms. These solutions not only offer cost-effective and scalable options but also enable businesses to quickly leverage cutting-edge technologies, streamline operations, and improve overall efficiency. As a result, adopting these platforms has become a strategic move for companies looking to maintain a competitive edge in a fast-paced digital landscape.


While many sectors are tightening their belts, the IT industry is taking a different approach. Australian businesses are recognising technology not as an expense to be cut, but as a critical investment for long-term success. Rather than scaling back, companies are embracing digital advancements to enhance efficiency and secure a competitive edge. This growing focus on digital transformation highlights how businesses are positioning themselves for sustainable growth by adopting innovative technologies that streamline operations and prepare them for future challenges.


Bring on 2025!



Sources:




By Mimi Petrakis May 20, 2026
In 2026, the conversation around IT recruitment in Australia is shifting. While hiring demand remains strong across areas like cybersecurity, cloud, and digital infrastructure, the real challenge facing organisations is no longer just attracting talent — it’s building a sustainable workforce that can grow and adapt over time. For years, businesses have focused on filling immediate skill gaps. But with ongoing shortages in critical tech roles, organisations are now recognising that retention is just as important as recruitment. High turnover not only impacts delivery timelines but also drives up costs and erodes institutional knowledge. Employers who prioritise employee experience, career development, and flexible work are seeing stronger retention outcomes and gaining a competitive edge in a tight market. Workforce sustainability is quickly becoming a key business priority. This means moving beyond reactive hiring and thinking more strategically about how teams are structured, supported, and developed. Leading organisations are: Adopting hybrid workforce models (contract + permanent) Investing in upskilling and internal capability development Shifting toward skills-based hiring rather than rigid role definit ions Building pipelines of talent rather than hiring only when gaps appear This approach not only reduces hiring pressure but also creates more resilient, future-ready teams. Relying solely on reactive recruitment is becoming increasingly risky. With demand for specialist skills remaining high, waiting until a role becomes critical can lead to long hiring timelines and missed business opportunities. Instead, organisations are taking a more proactive approach, planning workforce needs and partnering with recruitment specialists who understand the market. In today’s environment, successful businesses are those that treat talent as a long-term investment, not a short-term fix. This means aligning hiring strategies with broader business goals and ensuring the right balance between immediate delivery and future capability. At Peoplebank , we work with organisations to go beyond traditional recruitment, helping build sustainable workforce strategies that combine access to high-quality talent with long-term planning. Ready to strengthen your team? Use our one-step Submit a Role form today and let our specialists connect you with the right talent to support your business now and into the future.
By Mimi Petrakis May 5, 2026
In today’s competitive hiring landscape, attracting talent is only half the challenge ; retaining top tech talent is where organisations gain a true advantage. With demand continuing to outpace supply across areas like AI, cybersecurity, and cloud, businesses must focus on creating environments where employees choose to stay and grow. 1. Offer More Than Just Salary While competitive pay remains important, it’s no longer the primary driver of retention. Tech professionals are increasingly prioritising flexible work arrangements , meaningful projects, and career progression. Organisations that offer hybrid work, clear development pathways, and exposure to innovative technologies are more likely to retain high performers. 2. Invest in Career Development Lack of growth is one of the leading reasons employees leave. Providing access to training, certifications, and internal mobility opportunities helps keep employees engaged and future-focused. Upskilling not only benefits the individual but also strengthens overall organisational capability. 3. Build a Strong Workplace Culture Retention is closely linked to culture and leadership. Teams that feel supported, recognised, and aligned to a clear purpose are more engaged and less likely to leave. Managers play a critical role in fostering open communication, feedback, and trust. 4. Prioritise Employee Experience From onboarding through to ongoing engagement, the employee experience should be intentional. Regular check-ins, recognition programs, and clear performance expectations all contribute to higher retention. This year, successful organisations are those that take a proactive, people-first approach to retention, balancing commercial outcomes with employee needs. At Peoplebank, we work with organisations to not only attract top tech talent, but to build strategies that help retain them long-term. Get in touch to find out more !
A cyber security ai specialists defending against AI fraud
By Dimitri P March 31, 2026
AI voice cloning is eroding trust in financial services. Learn key risks, layered controls, and the cyber/AI talent needed, via Peoplebank FS specialists.
Remote and hybrid work trends in Australia’s tech industry: balancing high-paying digital jobs with
By Dimitri P February 28, 2026
Discover if remote and hybrid tech jobs in Australia pay less, or if top digital talent can now have both high salaries and flexible work options in 2026.
Peoplebank Feb 2026 Salary Guide Insights - role and regional pay benchmarks across 13 tech sectors
By Dimitri P January 31, 2026
Find out more about the Peoplebank Feb 2026 Salary Guide for role-level pay bands, state insights, trend analysis and recruiter commentary to set competitive offers.
2026 tech hiring: AI fluency, data & cybersecurity demand, and hiring for learning mindset
By Dimitri P December 31, 2025
Sumi Dahal predicts 2026 tech hiring will prioritise AI fluency, data and cybersecurity roles, and favour candidates with curiosity and a growth mindset.
Two colleagues smiling in an office discussing IT hiring — permanent vs contract roles
By Dimitri P November 30, 2025
Decide between permanent and contract IT hires with Peoplebank's practical guide — learn when to choose each model and let us assess, source and manage your hire.
A streamlined recruitment process for hiring managers, showing Peoplebank’s fast, efficient approach
By Dimitri P October 31, 2025
Discover how Peoplebank reduces time-to-hire without sacrificing quality. Learn our proven process for fast, reliable, and compliant tech recruitment.
smart tech IT digital employee making resume to get peoplebank job
By Dimitri P October 1, 2025
Stand out in tech! Expert recruiter Jaylene Quiaonza shares proven tips for crafting a winning resume. Land your dream job with Peoplebank.
Software Engineers using AI to write innovative code.
By Dimitri P September 11, 2025
Discover how AI is transforming tech careers and industries, creating winners, new roles, and opportunities for professionals and employers in Australia.