# Half of firms avoid investing in tech because of cost
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2017-08-10
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: New SalesTech Report Reveals UK Companies' Investment
Meta Description: Discover key challenges faced by businesses in adopting new technology for sales teams, and how investing in the right tools can enhance productivity.
URL: https://financedigest.com/half-of-firms-avoid-investing-in-tech-because-of-costhtml

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_Equipping a modern sales team is complex and expensive, according to research from SugarCRM_

Almost half of firms (48%) are putting off investing in technology for their sales teams because of concerns over cost.

The new SalesTech Report from CITE Research, on behalf of SugarCRM, found that many businesses are reluctant to spend money on new technology because of the impact on the bottom line. Despite this, 63% of UK companies [spend at least £1,200 on technology annually per sales](https://www.financedigest.com/automobile-shortages-spending-shift-to-services-hurt-u-s-retail-sales.html "Automobile shortages, spending shift to services hurt U.S. retail sales") representative to equip them with the right tools to do their jobs effectively – including smart phones, laptops, CRM systems and web meeting platforms. Meanwhile, [nearly a quarter](https://www.financedigest.com/uk-new-car-sales-up-by-nearly-a-quarter-in-october-smmt.html "UK new car sales up by nearly a quarter in October – SMMT") (22%) of the respondents said they spend at least £2,400 per sales employee.

![SugarCRM research image-1](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/sugarcrm-research-image-1-1736843601374-compressed.jpg)

SugarCRM research image-1

The research also highlighted a lack of confidence and expertise in installing new technology, with 34% of respondents admitted to being worried about the complexity of introducing new tech systems – and 20% concerned about a lack of skills in using the tools.

The survey further revealed concerns around the pressure of keeping pace with digital transformation, with 63% of firms [worried about the cost](https://www.financedigest.com/fortum-says-rising-costs-of-nordic-power-trading-are-worrying.html "Fortum says rising costs of Nordic power trading are “worrying”") and effort needed to keep systems up to date and more than two-thirds (69%) concerned about the need for training staff. Other hurdles to tech deployment include cultural challenges, with 34% of organisations [citing ‘resisting change’ as the main reason for avoiding investing](https://www.financedigest.com/ford-delays-spanish-investments-citing-revised-outlook-for-europe.html "Ford delays Spanish investments, citing ‘revised outlook for Europe’") in new technology.

“In today’s digital age, technology is a crucial asset to [improve the effectiveness and productivity of sales](https://www.financedigest.com/demand-for-meatless-products-and-vegetable-proteins-is-expected-to-improve-nutritional-yeast-market-sale.html "Demand For Meatless Products And Vegetable Proteins Is Expected To Improve Nutritional Yeast Market Sale") teams,” said Larry Augustin, CEO, SugarCRM. “However, these survey results indicate the [challenges organizations are facing when it comes to evolving the way their sales teams work](https://www.financedigest.com/hybrid-working-and-the-continued-security-challenges-for-financial-organisations.html "Hybrid working and the continued security challenges for financial organisations"). It’s clear there is still work to be done when it comes to [overcoming obstacles](https://www.financedigest.com/financial-challenges-for-single-parents-overcoming-obstacles-and-building-stability.html "Financial challenges for single parents: overcoming obstacles and building stability") and reframing how we think about technology in the workplace.”

Rebecca Wetteman, analyst at Nucleus Research, added: “The results of the CITE research survey match Nucleus’s own findings. The research indicates a modernisation of sales culture where using tools to gather, analyse and [share data](https://www.financedigest.com/world-shares-rise-u-s-yield-curve-inverts-after-strong-jobs-data.html "World shares rise, U.S. yield curve inverts after strong jobs data") is much more important than wining and dining potential clients.

![SugarCRM research image-2](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/sugarcrm-research-image-2-1736843601298-compressed.jpg)

SugarCRM research image-2

“What I find [interesting about the report](https://www.financedigest.com/shares-in-uk-chain-sainsburys-jump-11-on-report-of-buyout-interest.html "Shares in UK chain Sainsbury’s jump 11% on report of buyout interest") from CITE and SugarCRM is that organisations are no doubt willing to spend money, but many are in the experimental phase. Other than CRM, organisations are dabbling in a variety of other tools in a trial and error phase to determine what is absolutely critical for sales people to be more effective.”

The survey of 400 sales [executives in the United States and United Kingdom was conducted to define what the technology stack for a modern sales team](https://www.financedigest.com/zivver-expands-leadership-team-names-three-new-c-level-executives-2.html "Zivver Expands Leadership Team, Names Three New C-level Executives") looks like.

The study [revealed that CRM remains the most frequently deployed tool for sales](https://www.financedigest.com/sales-forecasts-of-automotive-parts-remanufacturing-market-reveal-positive-outlook-through-2026.html "Sales Forecasts of Automotive Parts Remanufacturing Market Reveal Positive Outlook Through 2026") teams, with 70% of organisations saying they use the technology. In addition, laptops, smartphones, tablets, lead development applications, collaboration and productivity tools, digital transactions software, [online meeting schedules](https://www.financedigest.com/instant-online-scheduling-to-revolutionize-the-plasmodium-falciparum-diagnostics-market.html "Instant Online Scheduling to revolutionize the Plasmodium Falciparum Diagnostics Market"), web meeting platforms, internal messaging tools and data enrichment services were all deemed “valuable” or “extremely valuable.”

**Methodology**

CITE Research, on behalf of SugarCRM, conducted a survey among 400 business professionals, with 200 respondents in the United States and 200 respondents in the United Kingdom.  Respondents were screened to be employed full-time, work in sales or [business development and have a job title](https://www.financedigest.com/title-homeopathic-veterinary-medicines-market-growing-at-a-cagr-of-5-business-and-future-opportunity-2031.html "Title: Homeopathic Veterinary Medicines Market Growing at a CAGR of ~5% | Business and Future Opportunity – 2031") of director-level or above. All respondents worked at companies with 100 or more employees.

For the complete survey report, please visit: [https://files.sugarcrm.com/resources/analyst-reports/2017-SalesTech-Survey-Report.pdf](https://files.sugarcrm.com/resources/analyst-reports/2017-SalesTech-Survey-Report.pdf)


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