Software budgets are being wasted on over-engineered IT tools

**Report Finds More Than Half of Firms Fail to See Expected ROI from Software Rollouts**

A recent study reveals that over half of companies are not achieving the return on investment (ROI) they anticipated from their software implementations. Poor integrations, siloed systems, and clunky user experiences (UX) are frequently cited issues contributing to this shortfall.

According to research conducted by Freshworks, a staggering 20% of software budgets are wasted on unnecessary business complexity, potentially bleeding up to 7% of annual revenue. The survey, which included over 700 IT, customer experience (CX), finance, and operations professionals, found that 53% failed to realize the ROI they hoped for, with 43% reporting projects running over budget and 32% frustrated by inadequate vendor support.

### Overspending on Complex Software

While software is intended to help employees manage various processes efficiently, the study uncovered that the average worker actually loses around seven hours per week due to inefficient tools. Additionally, technological overwhelm is a growing concern — the average employee interacts with 15 different software tools and four communication channels every single day.

Freshworks emphasizes that there is no one-size-fits-all solution when it comes to software; different industries and teams have unique requirements. For example:

– CX teams struggle with non-customizable workflows (42%), excessive tools (36%), and slow routine tasks (33%).
– IT professionals cite poor integrations (36%), siloed software (32%), and outdated or clunky user interfaces (28%).

### Technology Meant to Help Is Holding Businesses Back

Dennis Woodside, CEO of Freshworks, commented, “The very tools meant to help businesses move faster are now holding them back.” Nearly one in five respondents (17%) know someone on their team who has quit or experienced burnout specifically because of software-related frustrations.

Echoing this sentiment, Freshworks Chief Customer and Marketing Officer Mika Yamamoto stated, “Technology should empower people, not overwhelm them. When companies unify systems and processes, taking a people-first approach to eliminate complexity, teams can focus on what matters: building relationships that keep customers happy and businesses growing.”

### The Path Forward: Streamlining Tech Stacks

The report encourages businesses to simplify and streamline their technology stacks. Doing so can not only improve ROI but also boost employee morale, leading to positive ripple effects across the organization.

By cutting unnecessary software and adopting a unified, user-friendly approach, companies can reduce waste, enhance productivity, and foster a healthier workplace culture.

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