Downtimes Negatively Affect Your Reputation, Ability To Comply With Regulations, and Increase Your Costs.
There’s been a lot of news lately about IT downtimes and their impact on businesses. One of the biggest disadvantages to downtime is lost productivity, because workers can’t do their jobs without IT systems up and running.Â
Rising Expenses and Declining Revenues
IT downtime is directly linked to lost business revenue and increased costs. Many people aren’t aware of how much businesses today depend on technology.Â IT downtimes can keep employees from accessing critical information or data, and impact important projects awaiting completion. This directly affects a business’s operations, productivity, and ultimately profitability.
Since most companies rely heavily on IT, system downtimes can affect the productivity of almost everyone in the organization.
Some of the costs associated with IT downtimes include â€”
Direct Costs such as:
- Lost transaction revenue
- Lost inventory
- Marketing costs
- Legal penalties from failure to deliver on service level agreements
Indirect Costs such as:
- Lost business opportunities
- Decrease in stock value
- Loss of customer/partner goodwill
- Brand damage
- Bad publicity/pressÂ
Compliance and Reputation Risks
When IT infrastructure fails, it can lead to serious consequences for companies that must adhere to regulatory compliance standards, such as healthcare, financial or legal entities. If they react to downtimes by moving data to a mobile device or public cloud service, this could easily put their data at risk.
Plus, this can potentially result in breaches and theft of sensitive information such as patient information, customer data, and/or confidential business information. As for the organization’s reputation, downtime can lead to lost customer confidence, or worseâ€”customers giving their business to competitors.
What should you do?Â Simpleâ€”Speak with your IT Managed Service Provider about how you can prevent IT downtimes and the damage to your business they can cause.