Average Software Spend Per Employee in 2025: Key Data Statistics

Company spending on software continues to rise and shows no signs of slowing down. With financial expense software, finance teams and management can plan and manage financial strategies effectively.

For finance teams and management, the challenge is not merely about the size of the spending. Decentralized purchasing, lack of real-time visibility, and disconnected systems make it nearly impossible to track, control, and optimize every dollar spent.

This article outlines the latest software spending benchmarks, the hidden costs that drain company budgets, the real challenges faced by finance teams, and how spend management platforms can help businesses regain control over their expenses.

How much do companies spend on software per employee in 2025?

At the company level, the average SaaS spending reaches $49 million per year, with around 275 applications being managed.

However, according to Cledara, these average figures mask significant differences based on company size.

• Small companies (0–20 employees): around $8,000 per employee, totaling approximately $121,336 per year
• Mid-sized companies (50–100 employees): total approximately $193,716
• Large SMBs (100–200 employees): around $1,741 per employee, totaling approximately $251,119

Interestingly, the cost per employee decreases as companies grow, because additional employees typically only require additional seats rather than new subscriptions.

Differences are also clearly visible across industries.

In terms of growth, Threadgold Consulting notes that the mid-market segment (500–10,000 employees) experienced the highest increase at around 40% year-over-year, followed by large enterprises (+28%) and SMEs (+21%).

Regionally, U.S. companies consistently spend more than companies in the UK and Europe, although this gap narrows as companies grow to the 100–200 employee scale. – Cledara.

Several factors driving the increase in spending in 2025, according to Zylo, include vendor price increases, consumption-based pricing models, investment in AI-native tools which grew by 75.2% year-over-year, and AI surcharges added to existing subscriptions.

Read more: 7 Practical Ways to Reduce Company Spending & Best Software

Hidden software costs where companies lose money

Behind the rising spending figures, there are much larger leakages that are not visible in most companies’ financial reports.

1. License waste reaches a new record

SaaS license waste is now at a very high level and has become one of the biggest sources of loss in software spending.

On average, organizations waste around $21 million per year on unused licenses, an increase of 14.2% compared to the previous year. – Zylo.

Although utilization increased from 47% to 54% in 2025, total waste remains high (slightly decreasing from $20.9M to $19.8M), indicating significant efficiency opportunities. – Zylo.

2. Waste increases as businesses grow

As organizations scale, the complexity of software management increases, along with the level of waste.

In the Cledara (2025) report, companies with 100–200 employees waste an average of around $89,033 or 34% of their software budget. For companies with more than 200 employees, waste can reach up to 48% of total software spending, nearly half of the SaaS investment.

3. Shadow IT and redundant tools

Lack of centralized control worsens and limits visibility into spending, triggering inefficient purchasing.

Zylo reports that SaaS usage now accounts for around 85% of all business software, yet IT only manages 26.1% of total spending and 15.9% of applications. Business units (non-IT) control around 70% of SaaS spending, creating decentralized purchases that are difficult for finance teams to track.

Many departments independently purchase tools with overlapping functions, leading to budget waste and fragmented workflows.

4. New pricing models and AI

Changes in SaaS pricing models and AI adoption are key drivers of rising and often unexpected costs.

Zylo reports that spending on AI-native applications increased by 75.2% year-over-year, yet 66.5% of IT leaders reported unexpected SaaS costs due to consumption-based pricing or AI features.

Why finance teams struggle to manage employee software spending?

The challenges faced by finance teams in controlling software spending are not merely about numbers, but about structures and systems that are not designed for modern business realities.

1. Decentralized purchasing

Around half of knowledge workers make business purchases within a given year, yet many finance teams lack the infrastructure to keep up with this distributed spending.

They still rely on decades-old processes that are not designed for the modern spending environment.

2. Manual and outdated systems

Nearly one-third of finance professionals cite the lack of access to digital tools and automation solutions as their biggest challenge.

Without real-time financial data, they are forced to chase receipts, rely on estimated records, and handle difficult conversations with employees.

3. Error-prone expense reports

Nearly half of expense reports are returned to employees due to errors.

4. Time wasted on financial administration

According to Teampay, employees spend around 46 hours per month on tasks such as organizing receipts, filling out expense reports, and managing corporate card purchases.

Knowledge workers also spend around 28 hours per month coordinating with finance teams regarding payment status and expense issue resolution.

5. Outdated spending data

In traditional expense management models, spending data is at least one month old, preventing finance teams from identifying and correcting issues in real time.

6. “Do more with less” pressure

7. Lack of visibility

Unconsolidated data makes it difficult for procurement teams to view purchasing processes and use data transparently.

8. Blind spots during SaaS renewals

With an average of 247 software renewals per year, many companies renew subscriptions without reviewing utilization data, leading to overspending and unnecessary auto-renewal lock-ins. – 2Data.

Read more: 10 Best Enterprise Budgeting Software for Cost Control

Comparison of software spending per employee by company size

Understanding your company’s position relative to industry averages is the first step in identifying optimization opportunities. Below is a complete overview based on company size:

Sources: Cledara 2025 Software Spend Report, Zylo 2025 SaaS Management Index

The data above shows a consistent pattern: the larger the company, the greater the total waste, although smaller companies tend to waste a higher percentage of their budget. This means no company size is immune to inefficiencies in software spending.

read more: Top 8 Spend Management Software for Better Cost Control

Why businesses need a spend management platform

Traditional expense management is no longer sufficient for the scale and complexity of modern businesses. This is why spend management platforms are becoming a strategic investment, not just an operational upgrade.

• Real-time visibility replaces end-of-month surprises: Spend management platforms consolidate expense data from all departments, employees, and vendors into a single dashboard.
• Automated policy enforcement: Instead of relying on manual reviews, the system automatically enforces spending limits, approved categories, and approval hierarchies at the point of purchase before money is spent.
• Elimination of shadow spending: With centralized tools, finance teams can see every subscription, every purchase, and every vendor across the organization.
• License optimization and renewal management: Spend management platforms track usage, identify unused licenses, and flag redundant tools before auto-renewal lock-ins take effect.
• Faster processes, lighter administrative burden: Automating receipt capture, expense categorization, approval routing, and reimbursement processing speeds up workflows.
• Scalability without additional headcount: As transaction volume increases, automated workflows handle the load without requiring additional finance staff.

How Mekari Expense helps businesses control software and operational spending

Effectively controlling software and operational spending requires a platform that provides full visibility and connects the entire expense lifecycle within one integrated system.

Mekari Expense is a spend management platform in Indonesia designed to give finance teams full control over every business expense, from software subscriptions and operational costs to business travel and procurement.

Mekari Expense offers:

• Mekari Limitless Card (Virtual & Physical): Issue corporate cards with customizable spending limits per employee, department, or project to prevent uncontrolled spending and eliminate the need for personal card reimbursements.
• Approval Automation: Customize multi-level approval workflows that automatically route expense requests based on amount, category, and department to ensure every purchase complies with company policies before it occurs.
• Custom Policy Enforcement: Set and enforce spending policies automatically, including budget limits, approved vendor lists, and expense categories, replacing error-prone manual review processes.
• Budget Allocation: Allocate budgets per department, project, or cost center with real-time tracking and proactive notifications when spending approaches defined limits.
• AI-Powered OCR: Scan and extract data from receipts and invoices automatically without manual input to reduce processing errors and save time at high transaction volumes.
• Reimbursement Automation: Accelerate the entire reimbursement cycle from submission to disbursement, enabling employees to get reimbursed faster while reducing processing time for finance teams.
• Seamless Integration with Mekari Jurnal: Sync all expense data directly to accounting software, eliminating manual reconciliation and ensuring financial records are always accurate and up to date.

Take control of your software and operational spending with Mekari Expense as a spend management platform!

References

Zylo. “2025 SaaS Management Index”

Gartner. “Gartner Forecasts Worldwide IT Spending to Grow 7.9% in 2025”

Cledara. “The 2025 Software Spend Report”

ThreadGold Consulting. “How Much Do Companies Spend on SaaS Per Employee? (2025)”

2Data. “The State of Software Costs in 2025: What Every Business Needs to Know”

CloudNuro. “50+ Essential SaaS Statistics and Industry Trends for 2026”

Paystand. “7 Trends Transforming Spend Management for Modern CFOs”

AvidXchange. “What’s Ahead for Finance Teams in 2026? Trends Financial Institutions Can’t Ignore”