A survey of 2,018 chief information officers and senior IT decision-makers at large enterprises reveals significant spending on software changes perceived as counterproductive. The study, commissioned by Origina and conducted by independent research firm Censuswide, included respondents from companies with at least 10,000 employees and $1 billion in annual revenue, split between US and UK organizations.
According to the findings, enterprises allocate approximately 28 percent of their software budgets to upgrades, migrations, and licensing modifications that IT leadership believes are unwanted. The results indicate widespread concern among IT heads, with 95 percent reporting that their organizations have purchased vendor-driven changes within the preceding three years that were expected to reduce performance, reliability, or business value. More than half of respondents said this has occurred repeatedly.
The survey attributes this spending pattern to structural imbalances in vendor-customer relationships. Seventy-six percent of respondents reported having minimal leverage in negotiations with software vendors, while 80 percent indicated that switching away from major providers would create substantial operational disruption. This dynamic leaves IT leaders with constrained options when facing mandatory upgrades tied to ongoing support.
The financial and operational consequences extend beyond direct software spending. Organizations report reduced funding for innovation, human resources, security, and customer-focused initiatives as a result of mandatory upgrade cycles. Additionally, such projects consume significant technical labor, with major upgrades potentially occupying experienced staff for extended periods, diverting capacity from strategic business initiatives.
In response to these dynamics, survey participants and industry experts recommended that enterprises negotiate exit terms and migration pricing during initial vendor agreements to establish greater control over their software environments. The vast majority of respondents, 91 percent, expressed support for regulatory protections comparable to tenant safeguards for long-term enterprise software agreements.
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