Insights From Our Software Advisors: Stand Out in Project Management

Tools buyers are replacing with project management software

When our advisors asked buyers what methods they were currently using to handle their day-to-day project management operations, here's what they found:

• 59% of buyers already have project management software to handle their daily operations, while almost 37% of them rely on non-specialized tools such as collaboration, document management, and time tracking tools.
• 20% of buyers have no particular method, and another 16% rely on manual methods, such as spreadsheets, or have a paper-based approach.

While basic PM tools may work for small teams, they often cause inefficiencies, missed updates, and higher costs as projects expand. Non-specialized tools also create misalignment, since teams must juggle multiple apps and licenses.

This gap signals a clear opportunity for vendors to meet evolving buyer needs. A dedicated project management solution with comprehensive features brings tasks, timelines, and collaboration into one place, reducing errors, keeping teams aligned, and driving long-term efficiency.

Why buyers switch to project management software

Our advisors conversed with buyers who are currently using either manual methods or non-specialized software and seeking a switch to project management software. These discussions shed light on businesses’ real-life pain points, inefficiency (43%), limited functionality (36%), and complicated interface (10%), related to their existing tools.

• Inefficiency: Manual workflows for task assignments, updates, and approvals slow projects down. Missed deadlines, duplicate work, and overlooked updates increase the risk of delays.
• Limited functionality: Most non-specialized tools lack project-focused features such as task dependencies, resource allocation, or time tracking. Teams end up using multiple apps, increasing admin work and chances for error.
• Complicated interface: Some tools are too complex for everyday users. A cluttered dashboard or steep learning curve discourages adoption, leaving teams to revert to emails and spreadsheets.

Our interactions with buyers show that many vendors struggle to show how their software improves project managers’ daily workflows. Compared to manual methods and non-specialized tools, dedicated project management systems offer clear, purpose-built advantages, as listed below:

• Improved collaboration: Team members can share files, comments, and updates in one place. This cuts down on endless email chains and helps everyone stay on the same page.
• Resource management: A dedicated system helps leaders allocate people, budgets, and tools more effectively. It prevents overloading some team members while others sit idle.
• Accountability: Clear ownership of tasks and deadlines makes it easier to track progress. Everyone knows what they’re responsible for, which reduces confusion and finger-pointing.
• Client transparency: Many platforms allow you to share project timelines or progress reports with clients. This builds trust and reduces the need for constant status calls or emails.
• Data-driven decisions: Built-in analytics show which projects are on track, where delays happen, and how resources are used. Leaders can use this data to plan better and deliver projects more efficiently.

What project management software features are valued the most

When evaluating project software, our advisor conversations and review analysis reveal a gap between what buyers seek and what users value the most.

• Buyers prioritize collaboration (58%), followed by project scheduling (54%), time tracking (30%), document management (29%), and resource management (28%).
• Current users rank task management highest (38%), reflecting its importance in managing projects on a daily basis.
   

This discrepancy highlights a key insight: Buyers prioritize features that support the entire project management workflow, while the current users of the tool focus on what helps manage daily tasks.

• Collaboration brings team communication, file sharing, and feedback into one platform, reducing email overload and keeping everyone aligned on project goals.
• Task management organizes work into clear assignments with deadlines and priorities, helping teams stay focused, track progress, and deliver projects on time.

Use cases for project management software

Beyond traditional project teams, dedicated project management software supports a wide range of industries—from tech and health to consulting and nonprofit, each with distinct workflows and specialized feature needs. For example:

• Management consulting firms use project management software to plan client engagements, track deliverables, and manage billable hours. Built-in reporting tools help consultants showcase results and maintain strong client relationships.
• Manufacturing businesses rely on PM software to coordinate production schedules, track supply chain milestones, and manage equipment maintenance. These tools help reduce downtime and ensure projects move from design to delivery smoothly.
• Engineering teams use PM platforms to handle complex project timelines, resource allocation, and compliance documentation. Collaboration features make it easier to coordinate across multiple disciplines and manage large-scale infrastructure projects.
• Healthcare organizations adopt project management tools to oversee initiatives like facility upgrades, technology rollouts, or process improvements. Centralized tracking ensures compliance with regulations while keeping projects on schedule.
• Non-profit organizations use PM software to manage fundraising campaigns, volunteer programs, and community projects. Task tracking and communication tools help teams stay organized, even when resources are limited.
   

Average budgets for project management software across industries

Businesses across the top five industries are willing to allocate an average budget of $50 to $36 per user, per month. In comparison, the overall average budget for purchasing project management software is about $50 per user, per month.

However, the budget for project management software varies across segments depending on factors such as deployment model, integration needs, number of users, customization level, and required features.

Here’s how different industries budget (in dollars, per user, per month) for project management software.

Buyer goals and challenges—what advisors are hearing

Project management buyers often have clear expectations and repeat questions tied to their daily operations. Through direct conversations with our software advisors, we’ve gathered insights into buyer behavior and their tasks, revealing patterns in their priorities, challenges, and decision-making criteria.

• What common misconceptions do buyers have about project management software?
  Many buyers assume project management software is just about basic task tracking or time logging. But the reality is more nuanced. Tools vary widely in how granular they get, some track time per task, others per project, and some offer automation that replaces manual entry. Misunderstandings often stem from not knowing how deeply these systems can integrate with workflows, resources, and milestones.
• What are some common problems buyers are trying to solve with project management software?
  Buyers often face fragmented systems that don’t talk to each other. They’re juggling separate tools for time tracking, scheduling, and reporting, leading to inefficiencies and manual work. Project management software helps unify these functions, automate repetitive tasks, and provide clearer visibility for stakeholders.
• What are the integration requirements for project management software, and how important are they?
  Integrations are critical. Buyers want project management tools that connect with payroll, accounting, CRM, and even business intelligence platforms. These links reduce manual data entry and improve reporting accuracy. While some features can stand alone, most buyers prefer systems that fit into their existing tech stack, especially for financial tracking and resource planning.
• Is there anything unique that buyers in this specialty specifically ask for?
  Yes. Access control and external collaboration are top tasks. Buyers want role-based permissions so stakeholders see only what’s relevant. Many also need external user access or client portals, especially in professional services automation (PSA) setups. These features support secure collaboration across teams, clients, and departments without compromising data integrity.
   

Recommended actions for project management software vendors

Here are five strategic actions that vendors can take to better meet buyer expectations and stand out in a competitive market:

1. Emphasize collaboration and task management upfront: Buyers prioritize collaboration (58%) during purchase, while users value task management (38%) for daily execution. Highlight how your software supports both strategic alignment and operational clarity. Use real-world examples to show how teams stay organized and meet deadlines.
2. Solve inefficiencies with purpose-built automation: 43% of buyers cite inefficiency and 36% cite limited functionality as reasons for switching. Showcase features like task dependencies, resource allocation, and time tracking that reduce manual work and unify workflows. Tailor demos to reflect common buyer pain points.
3. Make onboarding and usability a selling point: A complicated interface deters adoption. Position your onboarding experience as a value driver—offer quick setup, intuitive UI, and responsive support. Use testimonials to show how easy adoption led to measurable improvements in project delivery and team alignment.
4. Be integration-ready and security-conscious: Buyers want tools that connect with CRM, payroll, accounting, and BI platforms. Highlight available integrations and role-based access controls to support secure collaboration across teams and clients. These features are especially critical for PSA buyers and professional services firms.
5. Be transparent and pricing-aligned: Clearly display your pricing, aligning with the average budget of $36–$50/user/month. Offer tiered plans and ROI calculators to help buyers assess fit. Benchmark against trusted sources like the Capterra 2025 Shortlist to validate your positioning.
    

Rise above your competition with strategic insights

Project management software vendors face intense competition in a crowded market. With the right insights, you can identify buyer priorities and pain points, then tailor your messaging to address them directly and capture attention.

With more than 10 million active software buyers on our sites every month, Gartner Digital Markets can equip you with the strategic insights you need to level up your marketing strategy and become a leader in your category.

Log in to your Gartner Digital Markets account and optimize your profile to ensure buyers understand how your software meets their evolving needs.

Once your profile is ready, use this insight to build a high-quality sales pipeline and this resource to master follow-ups that convert leads into customers.

Methodology and buyer demographics

Findings are based on data from conversations that Gartner Digital Markets’ advisor team has daily with software buyers seeking guidance on purchase decisions. The data used to create this report is based on interactions with small and midsize businesses seeking project management tools. For this report, we analyzed approximately 1,500+ phone interactions from Aug. 28, 2024, to Aug. 28, 2025.

The findings of this report represent buyers who contacted Gartner Digital Markets and may not be indicative of the market as a whole. Data points are rounded to the nearest whole number.

The buyers we interacted with are largely small businesses representing a growing majority of project management software purchases. Below you’ll find the demographics of the buyers so you can see the size and type of businesses, from annual revenue to industry.