76% of UK businesses will spend more on software in 2025: Here's why

Buying software can be a fraught process, but with businesses dedicating efforts to address recent technological developments, there is a risk of mistakes in selecting a suitable system when playing catch-up. Discover the most impactful trends software buyers use to help refine the search.

Software buyers in the UK expect an increase in software spending in 2025, due in part to a focus on business goals that address recent technological advancements. This is a key finding from Capterra’s 2025 Tech Trends Survey, which was conducted among 3,500 respondents in nine countries, with 350 based in the United Kingdom.*

Choosing a business software platform involves a significant amount of work. Money, manpower, and critically, time all play a part in getting to the best option available. This is not something that can be rushed but it can be refined and understood better to create clearer expectations within the company. In this report, we identify how U.K. businesses are going about that process and what lessons can be learned to try and make the selection of a software system more precise and successful in the long run. 

Tech advancement FOMO is pushing UK software spending higher

Technology moves fast and businesses must decide on the best moment to onboard a system to avoid being left behind and losing out on efficiency gains. Getting ahead of emerging trends in software and being an early adopter can bring advantages but when tech is less well-proven, return on investment (ROI) could take a hit. 

Our U.K. sample shows that they are mindful of this challenge and identify technology advancements as one of the most significant external factors affecting their business goals ahead of 2025. Two-thirds (67%) of U.K. software buyers see this as a major issue. This is significantly higher than our global average of 60% and is among the highest worldwide. 

As a result, software spending is rising as businesses look to take advantage of new developments. Overall 76% say their organisations will commit more budget to software in 2025 compared to 2024, just above the global average of 75%. Most of this group (59%) expect to spend between 5%-15% more on digital systems next year.

Of course, this sense of fear of missing out (FOMO) is being driven partially by the adoption of artificial intelligence (AI) technology. AI is the second most common software priority for U.K. businesses in 2025, but AI doesn’t tell the whole story. In fact, IT security looks to be the main priority for companies next year.

The increase in IT security software comes at a time when jobs in cybersecurity are growing quickly in the U.K. [1] However, another reason interest in this software is high is likely to be down to the threats posed by AI-enhanced cyberattacks. Warnings on this topic have been noted by security organisations during 2024, such as the National Cybersecurity Centre (NCSC) predicting an increasing volume of harder-to-spot and more sophisticated attacks. [2]

The desire for new tech is strong but implementation concerns could build hesitancy

When looking at B2B software buying trends, there are signs that there will be a push to invest in software over the coming twelve months. However, business challenges that arise over those coming months could halt or derail those goals.

Ahead of 2025, most of our U.K. sample is concerned about the difficulty of implementing new technology, upskilling employees, and the possibility of global and economic uncertainties intervening.

Additionally, whilst there are worries about challenges in upskilling workers in 2025, companies have been dedicating some efforts in 2024 to a possible solution. We found that more than half (57%) of companies that adopted a software solution in the last 12 months implemented a learning management system (LMS), potentially alleviating some of the anticipated issues.

Nevertheless, According to our data, the U.K. is the third-most common country in which participants select technological implementation as an issue, which could prove a major roadblock for businesses anticipating a new technology or software purchase.

Any software or technological implementation has a learning curve. However, this underscores the importance of due diligence and care in selecting a solution. Planning a search ahead of time can help prevent avoidable issues with compatibility and any skills gaps that can reduce hesitancy to invest in technological upgrades. In the following sections, we’ll examine how U.K. software consumers manage the process of finding the most suitable system for their needs to help buyers plan ahead.

Most buyers settle on a software purchase within four months 

Moving fast whilst taking time to properly assess software options is an important balancing act for software buyers. The wrong decision doesn’t just incur a financial cost but could also affect business performance in the short-to-medium term. 

Our research shows that the majority (60%) of buyers will dedicate between one-to-four-months to a purchase selection process. A further 28% extend this further by considering possible options over a five-to-six-month period. 

However, this time spent seems to do enough to allay fears of a dud purchase as confidence is overall high when that decision point is reached. We observed in our data that 86% of U.K. software buyers were highly confident in their final decision when they actually made their final selection.

There is also optimism among company leadership that new software deployment will convert into a positive ROI relatively fast. Over a quarter (26%) in the U.K. anticipate a positive return on investment from a software purchase by the six-month mark and 30% anticipate success even sooner.

Refine your shortlist by using reviews and hands-on user experience 

Having looked at how long companies dedicate to a software purchase, it’s important to consider what helps firms assess the best possible candidates when shortlisting options and making the final call on a vendor. Understanding these factors going into the buying process can save time during decision making.

Start with reputation and previous experiences when brainstorming vendors

Reputation plays an important role when creating an initial list of possible vendors. Over half (53%) of U.K. software buyers we surveyed make this choice based on a software company’s existing prestige within their industry, with just under half (49%) also relying on previous experience with the vendor or product to make their choice.

However, recommendations and word of mouth also play an important part in the decision-making process, with four in ten using peer recommendations to assess possible options. As the buyer journey continues, that initial list is then narrowed by formal research into the options available, which also relies heavily on user experience.

Leverage industry knowledge and user feedback to narrow the list

When creating a final shortlist of software options, suggestions by industry experts (43%), customer testimonials (40%), and customer reviews (39%) prove to be the key differentiators for U.K. software buyers. This can help separate marketing hype from actual experience in using a tool. For example, 61% in the U.K. are more likely to use comparison and review sites to assess customer satisfaction from actual users rather than trusting reviews featured on a vendor’s site. 

Try before buying

In the final stages of a software buying process, personal, hands-on experience becomes crucial. We observed in our data that the most important factor for buyers in the U.K. was a product trial, which 60% use as a key decider. An online demonstration, allowing buyers to see how the software works in practice, also runs a close second, with 55% identifying it as key to their final choice.

Adopt the right advanced technology by defining clear search guidelines and processes

Our findings show that there is a drive amongst businesses in the U.K. to keep up with the technological curve, especially in terms of advanced AI tech and beefing up IT security. This translates to higher spending on software, making it even more important to foster certainty in the final choice.

The data highlighted throughout this report demonstrates a few key learnings that can help businesses simplify and enhance that process:

1. Create clear expectations on the implementation and compatibility requirements of your company when choosing a software platform. 
2. Anticipate up to a four-to-six-month lead time on the selection process.
3. Consider user experience via peer recommendations and using comparison and review websites when selecting your shortlist of possible options.
4. Use trials and demonstrations to solidify the certainty of the final decision.