UK businesses regret one in every five pounds they spend on software, according to new research from Freshworks, adding up to £32 billion in regretted technology spend across the country every year. 

The SaaS firm’s Cost of Complexity Report found that British firms are beginning to question the value of the systems they rely on, pointing to familiar challenges such as complicated software environments, slow implementation cycles and tools that are difficult for teams to adopt.

According to the study, which polled more than 700 professionals across key business functions, UK firms report regret across 19% of their CX software spend, 13% of AI and agentic tools, and 12% of ITSM investments. 

In practice, Freshworks said that this is showing up as powerful but hard-to-configure platforms, AI that stalls after pilots, and ITSM systems that struggle to adapt to real workflows.

Meanwhile, long delivery and implementation timelines continue to hold organisations back. While 76% of vendors claim they can complete projects in under six months, 37% of UK businesses report software projects taking longer. 

Other key drivers of technology regret are slipping timelines, skills gaps, and uncoordinated project management, issues that, taken together, point to overcomplicated tech stacks, stretched internal capacity, and unclear ownership during delivery.

These issues also affect employees, with more than a third (36%) of UK staff facing complicated processes, and 32% reporting organisational complexity. Day-to-day, Freshworks said that this means juggling too many tools, duplicating work, or waiting on approvals across systems.  

As a result, 63% of UK employees say they are likely to leave their organisation in the next year, adding strain to already overburdened teams.

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“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 should be looking to do all they can to reduce friction, refocus teams and make sure every pound invested in software genuinely supports the work people are trying to do. Organisations that act now and uncomplicate with urgency will move faster and get far more return from the technology they use.”

Practical steps to streamline operations and avoid buyer’s remorse include cutting back sprawling toolsets, setting clear implementation milestones, and choosing platforms that are easier to adopt and quicker to show results.