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IT Downtime Carries a High Pricetag

By Bob Violino on 2011-05-25


IT downtime costs businesses, collectively, more than 127 million person-hours per year—or an average of 545 person-hours per company—in employee productivity, according to an online survey of IT and business executives sponsored by CA Technologies and conducted by research firm Coleman Parkes in November 2010. This loss is equivalent to 63,500 people being unable to work for an entire year, according to CA. The survey of 2,000 organizations in North America and Europe also found that IT outages are frequent and lengthy, and can substantially damage company reputation, staff morale and customer loyalty. Despite this, a majority of organizations in North America don’t have a formal and comprehensive disaster recovery policy. “There are a variety of practical and affordable steps organizations can take to protect themselves against the adverse business impact of IT outages,” says Steve Fairbanks, vice president of product management, Data Management, at CA Technologies. “Given that these outages are a fact of life, and that some of the consequences of outages can be irreversible, investments in improved business continuity are extremely worthwhile.”

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14 hours


Each business suffers an average of 14 hours of downtime per year, during which time employees are only able to work at 63% of their usual productivity.

Recovery time


After systems are back up and running, organizations lose an average of nine additional hours per year to data recovery time. During these times, employees’ productivity is only at 70%.

Damaged reputation


50% of respondents say IT outages can damage a company’s reputation, and 18% think outages can be “very damaging”.

44%


44% of respondents think IT downtime can damage staff morale.

Loss of customers?


35% of respondents think IT downtime can harm customer loyalty.

Policies lacking


One third (33%) of respondents say their organization does not have a fully developed and formal disaster recovery 87% policy in place.

In the works


20% of respondents say their organization is currently developing a disaster recovery policy, and 13% say their company has no formal policy planned.

87%


87% of respondents say failure to recover data would be damaging to the business.

Disastrous


23% of respondents say failure to recover data would be “disastrous” to the business.

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