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Study: Nearly 70 Percent of Tech Spending Is Wasted

Two-thirds of the projects in the survey were "either scrapped, or end up being underwhelming."

Rafe Swan | Getty Images

Large companies often spend a good deal of money on cultivating their technology, but a new study suggests nearly 70 percent of what they spend may be misallocated.

In a study, Genpact Research Institute recently found that, of nearly $600 billion spent on digital projects, almost $400 billion of it was invested in projects that fell short of expectations and returns on investment . In fact, much of what companies invest in technology sustains existing, or “legacy,” systems, rather than new technology, the report found.

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This article originally appeared on Recode.net.

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