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Sales teams driving up SaaS costs

Sales is the most expensive department when it comes to SaaS, with sales tools making up 18% of all SaaS spend in in an average organisation, claims SaaS purchasing and spend management platform Vertice.

According to the company’s latest Ultimate Guide To Purchasing Sales Software report, sales teams are also amongst the most wasteful, with 52% of users frequently failing to login to platforms, let alone get maximum utility from them, compared to 33% across all departments.

Vertice’s analysis shows that the average business spends £7,500 on SaaS for every sales employee – almost double the £3,762 that is spent on employees in other departments.

Overall, just 67% of licences being paid for are actively being used by employees, representing an overspend of one third and a cost of millions to larger organisations.

Vertice warns that transparency remains a key challenge in SaaS purchasing as many SaaS vendors intentionally keep pricing hidden. Fewer than half (45%) publish their pricing in full, with most obscuring the cost of at least some of their licensing.

Recent research by Gartner estimates that the SaaS industry was worth $171 billion in 2022, up 42% from 2020, with the average business of 1,000 employees now maintaining around 177 active software subscriptions.

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