In many mid-sized companies, software spending grows unchecked - layer upon layer of overlapping tools, unused licenses, and auto-renewed contracts. The result? Shelfware quietly draining budgets while delivering no business value.
At STG, the first phase of savings often comes from a Technology Contracts Review - identifying unused tools, consolidating redundant ones, and renegotiating vendor terms. Savings of 30–40% are common, without sacrificing capabilities.
Why It Matters for the C-Suite
Underused software doesn’t just waste money - it creates complexity, increases training needs, and adds potential security vulnerabilities. A lean, strategically aligned software stack supports both operational efficiency and better ROI.
Recommended Executive Actions
- Conduct a usage audit to determine actual adoption of each tool.
- Identify overlapping functionality and consolidate into fewer, more powerful platforms.
- Assign ownership for tracking and reporting on software ROI.
- Renegotiate vendor agreements for better terms, volume discounts, and scalable licensing.
- Implement governance to prevent unvetted software purchases.
From the STG Playbook:
One manufacturing client cut annual tech and licensing spend by $350,000 in year one, and $750,000 annually thereafter, by consolidating tools and renegotiating contracts - without reducing functionality.
