A recent report by Freshworks titled ‘State of Workplace Technology: AI in IT’ reveals that businesses are spending millions on unnecessary software, leading to potential financial waste. The report sheds light on the current state of IT spending in the UK.
Wasteful Software Spending
According to the report, UK companies spend an average of £2.7 million on software contracts annually. This expenditure is often accompanied by increased management efforts to handle IT services. Approximately 71% of IT professionals stated that they had to manage more software compared to the previous year.
Potential Savings and Growth Opportunities
Freshworks suggests that British businesses could save approximately £446,000 per year by eliminating unnecessary software expenditures. Despite the need to reduce wasteful IT spending, the report predicts that IT departments will grow in the coming year, creating job opportunities in a time of global uncertainty.
Role of AI in Streamlining Operations
While AI technology has the potential to significantly enhance efficiency and eliminate repetitive tasks, many companies have not fully embraced it. The report indicates that 91% of IT directors or higher-ranking professionals are using AI, and 70% actively encourage its adoption.
However, the usage of AI tools is less common among team leads, managers, and older workers, possibly indicating the need for clearer communication and relevant training.
Looking Forward
Freshworks CIO Prasad Ramakrishnan suggests that simplified technology, combined with AI, can enhance productivity and efficiency more effectively than legacy software, marking a significant shift in workplace technology.
