(Report) The Global Cost of Complexity

Technology is supposed to help us work more effectively and efficiently.

Instead, as businesses have expanded their technology stacks and operational processes, it’s become tangled—too many tools, too many layers, too little clarity. The modern workplace is stretched thin by platforms that don’t talk to each other, redundant processes that slow progress, and siloed systems that fragment focus. The result isn’t sophistication—it’s unnecessary complexity that erodes productivity, employee morale, revenue, and, ultimately, top-line growth.

Every dollar lost to that complexity is a dollar not spent on growth. Organizational complexity accounts for 7% of total annual revenue loss for an average business, according to a new Freshworks global study. Software often is a root cause of this, with organizations, on an annual average, attributing $1 out of every $5 spent on total software costs lost to complexity. That’s time, talent, and money that could instead be fueling innovation, customer experience, and expansion. This 7% loss equals the size of a typical R&D budget according to EY1—effectively erasing innovation investment and slowing the pace of progress.

Fortunately, there are ways to break free from complexity’s grip. This report takes a closer look at how complexity undermines productivity, morale, and revenue—and how organizations can uncomplicate the way they work to drive growth, strengthen customer relationships, and create a more productive, and happier, workplace.