Listen in on any business discussion and you’ll hear it: The obsession with efficiency. Managers talking about streamlining processes, executives touting their latest automation wins, and teams finally ditching paper forms that should have died in the 1990s. Somewhere along the way, efficiency stopped being a competitive advantage and became a requirement for profitability.
But there’s a hidden hurdle on this track to efficiency — SaaS sprawl. Yep, the very software solutions that were intended to boost organizational productivity and efficiency are now eroding them.
Software sprawl isn’t just about bloated tech stacks or wasted dollars. It creates ripple effects across organizations, affecting workflows, employee morale, and customer satisfaction.
Five ways overlapping, uncoordinated SaaS sprawl eats away at organizational efficiency
1. Fragmentation stalls workflows
Disconnected tools require teams to rely on manual processes, re-enter data, and switch between apps constantly. This inefficiency results in approval delays, missed deadlines, and strained resources.
2. Data chaos leads to poor decisions
Tools operating in isolation create inconsistent reporting and messy data sets. Without a centralized source of truth, businesses struggle to derive meaningful insights from their systems, leading to misinformed decisions.
3. Budget burn breeds discontent
Redundant apps not only inflate IT budgets but also reduce ROI on the tools meant to enable efficiency. What’s worse, the lack of integration often requires additional investments to patch operations together.
4. IT overload
Managing a sprawling SaaS ecosystem places an overwhelming burden on IT teams. Many find themselves stretched thin, putting out fires instead of focusing on strategic initiatives.
5. A poor CX undermines trust
Customer-facing teams relying on fragmented tools fail to provide a consistent and seamless experience. Delayed responses, errors, and friction-filled processes leave customers unimpressed.
How U.S. leaders are attempting to solve the sprawl
The good news? Future-looking businesses are homing in on software sprawl, treating it as a critical priority to regain control over budgets and operations. Here’s how IT leaders across the United States are attempting to solve the sprawl in 2025:
1. Centralizing procurement
51% of organizations are consolidating software purchases through centralized procurement policies to reduce redundancy and encourage standardization.
2. Investing in integrated platforms
Half of organizations are opting for multi-functional platforms that streamline workflows and offer native integrations. These all-in-one solutions eliminate the need for separate tools to manage various tasks.
3. Leveraging AI to optimize usage
50% of leaders are adopting AI to analyze software usage and flag underutilized tools. AI is playing a major role in improving efficiency by automating integrations, tracking redundant apps, and guiding organizations toward leaner tech stacks.
4. Consolidating SaaS applications
45% of organizations are encouraging teams to consolidate apps. This involves retiring niche, underused tools and migrating employees to standard, company-approved platforms.
5. Conducting software audits
41% of IT leaders are auditing their stacks regularly to track licenses, usage stats, and redundant software costs. Proactive audits help ensure that the tech ecosystem aligns with business goals.
6. Creating custom-built applications
Developing custom-built apps tailored to organizational needs is another approach gaining traction. While these apps require upfront effort, they offer long-term gains in usability and integration.
When efficiency is the question, process automation is the answer
IT leaders have a powerful opportunity to shift from software overload to software orchestration. By consolidating platforms, embracing intelligent automation, and putting process orchestration at the center of digital strategy, organizations can turn SaaS
sprawl into streamlined scalability.
The ideal platform solution should connect disparate systems, bring together workflows and data, and address organizational inefficiencies without adding costly complexity.
Nintex is a single platform for process automation, app development, and AI … and your solution to controlling software sprawl.
Read more about how Nintex can support you as you strike back against SaaS sprawl in The SaaS Sprawl Snapshot 2025.