Software budgets are being wasted on over-engineered IT tools
That's the consensus from a new survey by Freshworks - with $1 in every $5 is considered ‘wasted’ due to failed implementations, underused tools and hidden costs.
Published on 12th November 2025
A fifth of software budgets is being wasted on unnecessary business complexity, which could be haemorrhaging 7% of annual revenue, new research has claimed.
More than half (53%) of the 700+ IT, CX, finance and operations professionals surveyed by Freshworks failed to achieve their expected software ROI, with 43% noting that projects ran over budget and 32% criticising vendor support.
As a result, $1 in every $5 is considered ‘wasted’ due to failed implementations, underused tools and hidden costs.
Companies are overspending on complex software
Despite being designed to help workers handle all manner of processes, the average employee actually lost around seven hours per week due to inefficient software.
The study also slates technological overwhelm, with the average worker accessing 15 software tools and four communications channels every single day.
Freshworks noted there’s no one-size-fits-all approach to software, and that different sectors have different requirements.
For example, CX workers stress about non-customisable workflows (42%), excessive tools (36%) and slow routine tasks (33%), while IT teams are fed up with poor integrations (36%), siloed tools (32%) and a dated or clunky UX (28%).
“The very tools meant to help businesses move faster are now holding them back,” Freshworks CEO Dennis Woodside commented.
Nearly one in five (17%) said they know someone on their team who’s quit or is burnt out, specifically because of software.
“Technology should empower people, not overwhelm them,” Chief Customer and Marketing Officer Mika Yamamoto commented.
“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 report encourages businesses to streamline their tech stacks, which will not only improve ROI, but also improve worker morale, leading to broader positive effects.
