Australian firms forecast 15% growth with tech focus

Australian businesses are entering 2025 with robust expectations for growth supported by significant investments in technology and software.

A recent survey conducted by software research site Capterra revealed that 85% of Australian companies anticipate revenue growth of 15% or more in the coming year. This prediction highlights the positive trajectory seen in recent years across the industry.

The survey examined businesses' key trends and investment strategies, focusing primarily on technology's role in achieving their growing ambitions. The urgency to deliver results is clear, with 54% of businesses expecting a positive return on new technology investments within six months and an additional 37% within a year. Companies are adjusting their strategies to ensure competitiveness despite the potential initial costs of new software transitions.

Laura Burgess, Analyst at Capterra, says, "As tech adoption accelerates, particularly with advancements in AI, automation and cloud solutions, businesses need software that can contribute to their anticipated growth in 2025. A well-thought-out software integration strategy empowers companies to make informed and cost-effective decisions, whether acquiring new tools or optimising existing ones."

With expectations for growth and expansion, software investment is becoming increasingly important for scalability and replacing outdated systems. The study found that 57% of Australian businesses see technological advancements as the top external influencer on their business goals over the next 18 months.

Despite the optimism, technology upgrades bring challenges, including cybersecurity threats (34%), employee training and upskilling (32%), and choosing the appropriate technologies (32%). Still, companies are committed to increasing their technology budgets, with 92% of decision-makers planning to maintain or boost their software spending in 2025.

However, along with substantial investments come mixed experiences. Australian companies report a higher incidence of software purchase regret at 71%, compared to the global average of 59%. Concerns stem from unforeseen expenses like rising subscription fees, additional features charges, and maintenance costs. Beyond the financial aspects, businesses face obstacles with user adoption due to resistance to new systems, insufficient training, and unsatisfactory user experiences.

Despite these issues, the commitment to technology remains steadfast. 92% of business decision-makers are willing to sustain or increase their software budgets, reflecting confidence in long-term benefits.

To address software purchase regrets, Australian companies (39%) acknowledge experiencing significant financial impacts. A common strategy to mitigate these effects includes renegotiating contract terms, as 38% of respondents noted, to avoid paying for unused features or services. Moreover, an identical percentage is ready to switch to more suitable software, aiming for improved ROI despite the upfront costs.

Additionally, 34% of businesses seek vendor support for training and best practices to leverage their software's full potential. "Australian businesses are entering 2025 with a clear vision for growth, leveraging technology to drive transformation and stay competitive in an evolving market," Burgess adds.