CXO CASE INSIGHT STUDY

What were the key findings of Freshworks’ recent Cost of Complexity research?

Complexity in enterprise software erodes growth, employee productivity and morale. Our Cost of Complexity study found that nearly one in five pounds spent on software is wasted due to unused tools, failed implementations and hidden costs. In the UK alone, this complexity costs the economy over £ 24 billion annually.

What challenges arise when workers have no single source of truth for data?

Without a single source of truth, teams operate in silos, duplicating effort and making decisions based on incomplete or conflicting information. Employees spend excessive time reconciling data across different platforms, which slows down decision-making and creates uncertainty.

Employees lose almost a full workday each week – around seven hours – navigating context switching and managing fragmented systems. More than a third of UK workers report having no single source of truth for data, and 38 % say they are overwhelmed by‘ tool overload’. These so-called‘ Frankenstacks’, a chaotic patchwork of disconnected systems, are quietly undermining both customer experience and employee morale.

Our research also highlights that complexity doesn’ t just cost money – it slows decision-making, erodes collaboration and limits growth. When teams are navigating disjointed systems, every interaction suffers, whether it’ s with colleagues or customers. The data underscores that complexity is increasingly a choice – and that when organisations uncomplicate how they work, they unlock speed, productivity and growth.

Why do companies continue to keep unused tools?

Inertia. Many organisations keep unused tools because of historical habits, mergers and acquisitions, or the perception that more features equal more sophistication. Over time, this leads to software sprawl, with overlapping functionality. Leaders often hesitate to remove tools for fear of disrupting workflows, even when usage is low.

In reality, retaining underused systems adds cost, slows employees down and fragments the data needed for decision-making. Organisations that actively audit and rationalise their tech stacks can redirect both spend and employee energy towards growth initiatives rather than carrying unnecessary complexity. Put simply: fewer tools, more impact.

What are some of the main reasons for failed implementations?

Failed software implementations are rarely about the technology itself – they’ re about planning, education and adoption. Long rollout timelines, insufficient change management, unclear training and clunky user interfaces all contribute to these issues. Our research shows that 43 % of companies exceeded their budget for implementations last year, and a third found vendor support to be unhelpful.

Additionally, systems often come with redundant features or integrations that conflict with existing processes. Teams often implement tools on top of dated and fragmented processes; they end up managing workarounds instead of working efficiently. In contrast, organisations that choose solutions purpose-built for usability and rapid deployment – like Freshworks – see measurable impact in weeks, not months.

This fragmented environment also undermines collaboration. Teams struggle to share insights, track progress or maintain accountability. Alignment suffers, if it happens at all. Over time, morale suffers and burnout increases because employees are stuck firefighting rather than delivering results. Our research shows that 39 % of UK workers report lacking a single source of truth and confidence in decision-making – and quietly adds cost to the business.

How does tool overload for businesses affect customer experience?

Tool overload increases cognitive load, forcing employees to split their attention across multiple platforms. Even when employees are skilled and motivated, juggling too many systems reduces the time and mental bandwidth they can dedicate to understanding and engaging with customers. They know they’ re taking too long to respond to customers, which is demotivating.

For CX teams, this results in slower problem resolution, less proactive support and increased stress, ultimately impacting service delivery. Simplifying systems and centralising workflows allows employees to focus on people, not navigating software – which directly enhances customer satisfaction, loyalty and overall experience.

What’ s the most common reason that businesses find themselves with complex and bloated software?

Again, inertia. Complexity often accumulates as businesses grow. Organisations add tools, features and vendors without reviewing fit. Acquisitions, legacy systems and attempts to patch gaps with new tools all contribute to a bloated stack.

Compounding the issue, many legacy software providers add complexity under the guise of‘ added value’, offering extensive features but little clarity or ease of use. Companies end up paying for functionality they don’ t need, while employees struggle with interfaces that slow rather than accelerate work. The pattern is common: more software, less progress.

Tell me more about your people-first approach to AI.

At Freshworks, we believe AI exists for humans to do what they do best, not to outright eliminate entire functions. We embed AI directly into workflows to support employees. Our people-first AI automates repetitive, low-value tasks – like ticket triage, FAQs and routing – so teams can focus on higher-value work, strategy and human interaction.

www. intelligentcxo. com

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