UK firms regret software spending as tool sprawl causes IT headaches

Enterprises across the UK regret around 20% of their software purchases, new research suggests, with many executives questioning the scale of investment.

That’s according to Freshworks’ 2026 Cost of Complexity report, which found excess software spending exceeds £32 billion annually across the country.

Software spending “regret” is now a common pain point for IT leaders, the study noted, with 19% of enterprises revealing they regret excess spending on CX software, for example.

Regret over heightened spending on AI and agentic tools is also mounting, the study noted, cited by 13% of respondents.

A key factor behind this sense of regret lies in complexity, according to Freshworks. Many businesses are struggling with implementation after making costly purchases, as well as a growing array of fragmented tools.

Indeed, lengthy delivery and implementation processes are causing significant headaches for IT leaders, and bold vendor promises aren’t helping the situation.

Freshworks found that while 76% of vendors claim they can complete projects in under six months, 37% of respondents reported far longer timelines.

“This gap erodes confidence and drives up costs,” the company said in an announcement. “The main drivers of technology regret are slipping timelines, skills gaps, and uncoordinated project management.”

Workforce frustration growing

Poor implementation has a downstream effect on workers, the study warned, resulting in heightened worker frustration, which ultimately impacts productivity and efficiency.

More than one-third (36%) of workers said they face complicated, laborious processes when using new technologies, while 32% reported frustration with organizational complexity. Many also reported “juggling too many tools” on a daily basis.

“For too long, complexity has been mistaken for progress, but in reality - it slows teams down and hides waste,” said Simon Hayward, GM and VP Sales International at Freshworks.

“UK businesses need to treat simplicity as a deliberate choice and look to streamline overlapping tools, set firm timelines, and scrap solutions that don’t add any value.”

Tool sprawl is growing

Tool sprawl is by no means a new problem for enterprises. Indeed, it’s become a common pain point for many over the last five years.

Analysis from Nintex in June last year found tool sprawl has a significant impact on enterprise finances and productivity.

The issue has reached such an extent that more than six-in-ten now view tackling this problem as a leading priority.

Tool sprawl doesn’t just impact workers, however. Research from IBM and Palo Alto Networks found enterprises working with a disparate array of tools and applications are at higher risk of security threats.

Those with fragmented tool stacks take around 72 days longer on average to detect security breaches, and take 84 days longer to contain them.

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