Many businesses see their IT as a cost center rather than an investment. It’s a common mindset that often results in a complacent IT strategy.
This can be a costly mistake when considering the cost of downtime, lost productivity, and data loss. It can also impact your company’s reputation, market position, and bottom line.
Cost of Downtime
Downtime can be costly if your business relies on technology to run smoothly. The cost of downtime can include loss of revenue, productivity, and data.
According to research from ITIC, downtime costs rose 2% year-over-year in 2021. In addition, downtime costs are projected to grow as businesses rely increasingly on the Internet for their business-critical processes.
Downtime can also affect your reputation and cause customers to churn. Having a reliable platform is essential for low customer turnover.
The total cost of downtime depends on your industry, organization size, and the outage extent. However, some costs can be calculated in a simple formula that includes lost revenue, labour, and supplies.
Cost of Lost Sales
The cost of not investing in IT services like WorkSmart for your business can be steep, even if you’re lucky enough to have the resources to spare. The cost of mishaps, downtime, and lost productivity can all but bury your bottom line. A solid IT strategy, a robust infrastructure, and the right people at the right time can turn your techie department into a bona fide competitive force. The best part? Having the IT department tasked with all the heavy lifting can free up your time and attention to concentrate on the tasks you want to do. The results are better-rounded staff, higher-quality products, and a happier customer base.
Cost of Lost Productivity
If your business doesn’t invest in IT services, it will incur the cost of lost productivity. This is a significant problem that many companies face.
Productivity is essential for any business because it helps reduce operational costs and increase profitability. When employees are productive, they work more efficiently, meaning fewer people are needed to accomplish the same amount of work.
When productivity falls, this can negatively impact the company’s overall growth. Moreover, it can also affect team morale and engagement.
According to the Integrated Benefits Institute research, poor worker health and its drag on productivity cost employers $576 billion annually, including worker’s compensation, disability, and group health program expenses.
Cost of Losing Data
Data loss is one of the most costly business disruptions, whether from human error or a cybercriminal attack. And with the volume of business data we rely on increasing in recent years, losing that data can be catastrophic for any company.
Losing your company’s data can have a wide range of financial impacts on your business, including lost productivity, revenue, and legal penalties. A data loss event can also damage your reputation and credibility with customers.
According to an industry study, 60 percent of companies that experience significant data loss close down within six months of the disaster. In another study, 72 percent of businesses that suffer consequential data loss disappear within two years.
