Is old software holding your business back?

How often does your business upgrade its software? If the answer is hardly ever, it’s probably making you much less efficient, productive and profitable. It’s an all-too-common scenario, but – why does it happen?

The UK government-backed, industry-led SME Digital Adoption Taskforce was set up in 2024 to encourage more small businesses to adopt productivity-enhancing digital technologies. It found that some UK SMEs delayed upgrading their software to save money, while others couldn’t see their potential return on investment, when upgrading their software could deliver significant time and cost savings, while boosting output, too.

Lack of digital skills was another factor, while some business owners believed upgrading software to be complex, risky and disruptive. Consequently, many stick with their existing software because it works (well, kind of), despite tell-tale signs that it should have been upgraded long ago.

So, what are six tell-tale signs that it's time to update your software?

Software crashes are caused by bugs in the code, hardware issues or conflicts with other programs. Bugs can overload the system, corrupt files and trigger unexpected errors that force the application to stop running. Regular software crashes can cost your business lots of time and money, while adding to your people’s daily frustrations – and even damaging customer trust. Crashes should rarely (if ever) happen, of course.

Even if you’re not plagued by frequent crashes, outdated software runs slowly, which can mean simple tasks take much longer, making your business less productive and profitable as a result.

Old software can be defenceless against cyber security threats, which grow ever more sophisticated and potentially devastating. Software vendors regularly release updates to address latest security threats. If you don’t or can’t update your software, malicious actors frequently target known weaknesses.

Outmoded software often doesn’t integrate well with firewalls, intrusion detection or encryption tools. If your cyber security measures aren’t fit for purpose against a rising level of threat, it leaves you exposed to attacks that can prove hugely damaging if not fatal.

Once software becomes old or obsolete, vendor support usually stops. And vendors no longer release software updates for your version, which is another sure sign that it’s time to update your software. Unsupported software can mean software bugs and crashes can’t be fixed, which can lead to more lost time and money, as well as greater frustration for you and your people. Your systems can be left vulnerable, unreliable and non-compliant.

If your software cannot be easily and smoothly integrated with your other software, hardware or operating systems, updating is your only solution. Do nothing and it can soon create inefficiencies, lost time and greater security risk, while demotivating your people. Your legacy systems might also be preventing you from introducing new software in other areas that could boost your productivity and profitability. Examples include CRM (customer relationship management) and ERP (enterprise resource planning) software.

Outmoded software can severely hamper your growth, because it may not be able to deal with the added demands of increased productivity or your expanding business needs. This can create bottlenecks, with your software becoming a blocker rather than an enabler. Integration with cloud-based software may not be possible, while profit-sapping inefficiencies and additional costs can result, robbing you of money you could use to grow, proving a barrier to growth-enabling innovation.

Updating your software regularly can make your business much more efficient, productive and profitable. The idea that seldom updating your software saves you money is a false economy. Moreover, any software costs could be repaid quickly – many times over – while updating needn’t be complex, risky or disruptive.

Upgrading your software isn’t a question of simply keeping up with technology – it’s much more vital than that. It’s about keeping your staff and customers happy, better protecting your business, maximising your efficiency, boosting your productivity and remaining competitive so you can unlock growth. Maybe it’s time you updated your software more regularly after all.

Tech Adoption for Growth is a new, government-funded pilot programme offering free, practical digital support to help SMEs and sole traders in the South West get more value from digital tools. Eligible businesses are assessed and then randomly allocated to receive either one-to-one expert support or the opportunity to take part in expert-led workshops. Find out more here.