Nintex warns of surging software sprawl across US businesses

Surging software sprawl is hampering US businesses by slowing operations, increasing manual workloads and limiting scaling opportunities. That’s according to new research from process automation vendor Nintex.

The firm surveyed 2,000 IT decision-makers from mid-market organizations across the globe to understand how software-as-a-service (SaaS) sprawl is affecting their organizations.

It found that software sprawl is more than just an inconvenience; it’s a systemic issue undermining efforts to optimize productivity, reduce costs and serve customers – particularly in the US.

What is software sprawl?

Software sprawl refers to the uncontrolled proliferation of software applications within an organization. It occurs when multiple, often redundant or overlapping, software tools are adopted across departments or teams without centralized oversight or strategy.

Key characteristics of software sprawl include tool redundancy, lack of integration, shadow IT, increased costs and security risks. 

US businesses face surging software sprawl

SaaS freedom of choice is creating a wave of complexity in US organizations, Nintex found. More than half (54 percent) of businesses surveyed have 51 to 200 SaaS tools in their stack and nearly a third (30 percent) are adding new tools weekly – the highest rate among all countries surveyed.

This unchecked expansion is taking a toll with 88 percent of US IT decision-makers reporting that software sprawl is having a moderate to major financial impact on their organization. One in four (24 percent) claim software sprawl is resulting in redundant IT spending. The pressure is even greater among larger mid-market organizations where 93 percent cite financial strain.

Beyond budget, sprawl is affecting operations with workflow delays (46 percent), increased manual entry and data duplication (46 percent), inconsistent reporting (37 percent) and difficulty scaling (34 percent) cited as direct outcomes. Meanwhile, nearly a third (27 percent) also blame disconnected systems for a poor customer experience.

Perceptions don’t always match reality either. Despite 98 percent of US IT leaders stating that their SaaS tools are integrated, one in three (33 percent) admit their orchestration is ineffective. Furthermore, while 96 percent say tackling SaaS sprawl is a moderate or high priority, nearly half (49 percent) lack the IT strategy and resources to deal with it.

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How are US businesses tackling software sprawl?

Many US businesses are taking a multi-pronged approach to slow software sprawl, Nintex found. Strategies include implementing centralized procurement (51 percent), investing in integrated platforms (50 percent), leveraging artificial intelligence (AI) (50 percent) and improving user training (46 percent).

“US businesses are realizing that innovation doesn’t come from adding more tools – it comes from connecting and optimizing what they already have,” said Ashley Nicol, regional VP at Nintex. “As SaaS sprawl strains budgets, slows operations and fractures the customer experience, IT leaders are turning the page. They’re harnessing AI, integrated platforms and smarter strategies to transform complexity into clarity.”

However, no amount of AI or SaaS tools can fix a broken process, added Niranjan Vijayaragavan, chief product officer at Nintex. “Chasing efficiency with a sprawling tech stack is like building on shifting sands – today’s quick wins become tomorrow’s operational risks. Real progress demands more than tools; it requires disciplined orchestration, intelligent workflows and a strong, integrated foundation.”

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