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World of Software > News > Software budgets are wasted on overdeveloped IT tools
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Software budgets are wasted on overdeveloped IT tools

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Last updated: 2025/11/12 at 9:30 AM
News Room Published 12 November 2025
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Software budgets are wasted on overdeveloped IT tools
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  • The report shows that more than half of companies are failing to achieve the ROI they had hoped for from software implementation
  • Poor integrations, silos and clunky UXs are often noticed
  • The solution is simple: just uninstall all unnecessary software

A fifth of software budgets are wasted on unnecessary business complexity, which could damage 7% of annual revenue, new research shows.

More than half (53%) of the more than 700 IT, CX, finance and operations professionals surveyed by Freshworks failed to achieve expected software ROI, with 43% noting projects over budget and 32% criticizing vendor support.

As a result, one in five dollars is considered “wasted” due to failed implementations, underutilized tools, and hidden costs.

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Companies spend too much on complex software

Despite being designed to help employees handle a variety of processes, the average employee loses about seven hours per week due to inefficient software.

The research also points to technological overwhelm, with the average worker having access to fifteen software tools and four communication channels every day.

Freshworks noted that there is no one-size-fits-all approach to software and that different industries have different requirements.

For example, CX employees worry about non-customizable workflows (42%), excessive tools (36%), and slow routine tasks (33%), while IT teams are fed up with poor integrations (36%), siled tools (32%) and outdated or clunky UX (28%).

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“The tools meant to help businesses move faster are now holding them back,” said Dennis Woodside, CEO of Freshworks.

Nearly one in five (17%) say they know someone on their team who has quit or is experiencing burnout, mainly because of software.

“Technology should empower people, not overwhelm them,” said Chief Customer and Marketing Officer Mika Yamamoto.

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“When companies unify systems and processes and put people at the center to eliminate complexity, teams can focus on what matters: building relationships that keep customers happy and businesses grow.”

The report encourages companies to streamline their technology suite, which will not only improve ROI, but also improve employee morale, leading to wider positive impacts.


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