Italy records one of Europe’s highest shares of businesses still operating fully on‑premise (16%), highlighting a critical opportunity to accelerate cloud‑driven efficiency
- Cloud adoption is advancing, but adoption levels differ markedly: 30% of Italian SMEs are fully cloud‑based and 40% hybrid, yet 16% still operate fully on‑premise
- Despite rising interest in AI, forward momentum remains cautious, with less than half (48%) of Italian SMEs planning to implement AI‑enabled tools in the year ahead
- Italy stands out for its strong outsourcing culture, supported by exceptionally high advisor loyalty (81%)
- A third (33%) cite economic conditions as their main challenge
MILAN–(BUSINESS WIRE)–Wolters Kluwer Tax & Accounting today released its inaugural Future Ready Business report, revealing that Italian small and medium sized enterprises (SMEs) are navigating persistent economic pressure, rising operating costs and complex regulatory demands while progressing cautiously with digital transformation. While resilience remains a defining characteristic of Italy’s SME ecosystem, the research highlights a growing modernisation gap compared with faster digitising European peers.
The findings point to a landscape shaped by incremental progress rather than decisive acceleration. Almost a third (30%) of Italian SMEs are now fully cloud based and 40% operate hybrid systems, reflecting a steady but measured transition. However, 16% remain fully on-premise, one of the highest proportions in Europe, underlining the continued role of legacy infrastructure and the opportunity to unlock greater efficiency through cloud adoption.
“Italian SMEs continue to demonstrate remarkable resilience and adaptability, even as economic pressures and regulatory complexity intensify,” said Bas Kniphorst, EVP & Managing Director, Wolters Kluwer Tax & Accounting Europe. “Our research shows that the businesses best positioned to navigate this uncertainty are modernising core systems, using cloud platforms to improve efficiency and resilience, and investing in digital skills alongside technology. By focusing first on high‑impact, practical actions, such as workflow automation and data‑driven decision‑making, SMEs can unlock value today while building a stronger foundation for AI adoption tomorrow.”
The Future Ready Business report draws on insights from more than 1,000 SMEs across Belgium, the Netherlands, the UK, Germany, Sweden, Denmark, Italy, and Spain.
Digital transformation: cautious progress across AI and cybersecurity
Italy’s digital transformation is advancing, but with a notable degree of caution. More than six in ten SMEs (61%) cite cost as the main barrier to technology adoption. Italy also records one of Europe’s largest shares of SMEs with no planned digital upgrades across areas such as AI tools, workflow automation, cybersecurity and digital payments. This period of hesitation contrasts sharply with faster moving markets including Belgium, the Netherlands and Spain, where investment momentum is stronger.
Artificial intelligence is beginning to gain traction as part of this broader transformation. Italian SMEs are applying AI in practical areas such as customer support automation, data extraction and forecasting. However, adoption remains cautious due to concerns around data security, implementation costs and skills shortages. While 29% of SMEs use AI daily and 37% weekly, usage levels comparable with Spain and Germany, less than half (48%) plan to implement AI-powered tools in the year ahead, pointing to weaker forward momentum.
“Italian SMEs are progressing digitally, but at a cautious pace,” said Tomàs Font, Vice President & General Manager, Wolters Kluwer Tax & Accounting Europe South Region. “By prioritising cloud adoption, cybersecurity and practical AI for automation and reporting, SMEs can build resilience and remain competitive in Europe’s increasingly digital market.”
Smart outsourcing remains a defining strength of Italian SMEs
Around 28% of Italian SMEs report challenges in hiring and retaining staff. While shortages are less acute than in northern Europe, the lack of digital and technical skills remains a barrier to transformation, with 47% of SMEs identifying skills gaps as a constraint on technology adoption.
Against this backdrop, Italy’s long established advisory culture plays a critical role. SMEs frequently outsource specialist or compliance intensive functions: 41% outsource payroll, 38% legal services, 31% bookkeeping and 16% accounting. This approach helps businesses reduce regulatory and administrative burden and access specialised expertise. With 81% of SMEs reporting high or very high loyalty to their advisors, outsourcing remains a key lever for addressing talent constraints and accelerating digital readiness.
Economic and financial pressures challenge growth
Italian SMEs rank among the least confident in Europe when it comes to regulatory preparedness. While a majority feel somewhat informed (54%), 17% say they are minimally informed and prepared, significantly higher than in the UK (6%) or the Netherlands (1%).
Rising costs continue to shape strategic priorities: 33% of SMEs cite economic conditions as their primary challenge. Cashflow pressures remain significant, affecting a third (29%) of SMEs. While inflation and rising costs are universal issues, 46% of Italian SMEs cite balancing quality and growth as one of their top three challenges in the coming year. This context reinforces the importance of renewing Italy’s momentum on digital transformation to support long-term competitiveness.
Notes to Editors
About the Future Ready Business report
The Future Ready Business report draws on insights from more than 1,000 small and medium sized enterprises (SMEs) across Belgium, the Netherlands, the UK, Germany, Sweden, Denmark, Italy, and Spain, examining how businesses are responding to economic volatility, regulatory change, talent constraints, and digital transformation across Europe. All participating organizations had fewer than 250 employees.
About Wolters Kluwer
Wolters Kluwer (EURONEXT: WKL) is a global leader in information solutions, software and services for professionals in healthcare; tax and accounting; financial and corporate compliance; legal and regulatory; corporate performance and ESG. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with technology and services.
Wolters Kluwer reported 2025 annual revenues of €6.1 billion. The group serves customers in over 180 countries, maintains operations in over 40 countries, and employs approximately 21,100 people worldwide. The company is headquartered in Alphen aan den Rijn, the Netherlands.
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