Security now outranks cost and performance as the top priority for businesses when choosing their tech and telco providers, according to a new study from EY, with AI‑infused service delivery ranking a predictable second.

Surveying more than 1,500 firms around the world, the consulting firm’s report, Reimagining Industry Future 2026, found that cybersecurity has overtaken speed of delivery as the most important attribute of ICT vendors, a shift which EY said reflects growing urgency around data protection and compliance as AI continues to pull in data at a mass scale.

AI embedded in service delivery is almost as important, however, with firms in the financial services, automotive and manufacturing sectors rating this capability as the most important factor in vendor selection.

Meanwhile, EY found businesses tend to rate ICT providers and cloud vendors ahead of telcos for expertise in delivering business outcomes. 

As telco operators look to close this gap, the report suggests they take encouragement from the fact many B2B customers see them as more than just connectivity providers, with 33% view them as infrastructure guardians, led by healthcare (39%) and government organisations (33%).

When choosing ICT providers, EY found firms are looking for suppliers that grasp their strategic needs, with 43% agreeing they want vendors to display a better understanding of their business and technology priorities.

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However, more than half (59%) said that IT providers routinely fail to demonstrate how they have used technologies to aid their own transformation, and don’t provide enough case studies of how they have delivered value to other businesses.

Holding vendors accountable for delivering these improvements is now seen as business critical, with 77% of firms actively reassessing supplier relationships due to the volatile geopolitical environment, and 43% reporting that they plan to consolidate suppliers in the next twelve months, up from 35% last year.

“There is a real business demand for vendors that act as strategic collaborators, not just technology providers,” said Adrian Baschnonga, EY’s global technology and telecommunications lead analyst.

“Organisations are also keen to reduce complexity and are demanding more agile sales interactions and simpler product options. Service providers that can act as consultative partners, while also delivering smoother customer experiences, will gain positive traction in a crowded market.”