20% of Software Budgets Wasted on Unnecessary Business Complexity, Freshworks Survey Finds

Core Insights - The report identifies a "growth tax" on companies due to complexity induced by enterprise software, costing millions and resulting in significant productivity losses [1][2][5] Financial Impact - Software complexity drains an average of 7% of annual revenue, equating to the size of a typical R&D budget [3] - Companies waste $1 out of every $5 on software due to failed implementations and underused tools, leading to an overall economic impact of nearly $1 trillion annually in the U.S. [4][6] Productivity Loss - Employees lose nearly seven hours each week to complicated processes, equating to almost a full workday [7] - Key frustrations for customer experience (CX) teams include uncustomizable workflows (42%) and excessive tool toggling (36%) [7][8] Employee Morale - Over 60% of surveyed employees are likely to leave their organizations within the next year, with organizational complexity and complicated processes being primary drivers [17] - The productivity crisis negatively impacts morale, leading to increased turnover and burnout [10][11] Strategic Recommendations - Organizations must prioritize simplicity in their technology stacks to unlock growth, optimize budgets, and improve employee morale [12]