IT Outages Cost Companies Billions Each Year
North American businesses suffer an average of 10 hours of IT downtime annually, collectively costing them $26.5 billion in revenue, according to a study released by CA Technologies Dec. 9.
In a series of interviews with CIOs, IT directors, and IT managers from 200 companies spanning the financial services, manufacturing, retail, and public sectors, researchers calculated the financial losses incurred when businesses cannot quickly recover from service outages. For the purposes of this study, outages are attributable to hardware failures or security breaches. The companies range in size from small businesses with 50 employees to large organizations with more than 1,000 employees.
Respondents estimated their ability to generate revenue is reduced by 29 percent, according to the study. Financial services are impacted the most by downtime, with the average company losing $224,000 or more in revenue each year. Public-sector organizations are impacted the least, with the average organization losing $99,000 in revenue, according to the report. However, the public sector tends to experience the highest amount of downtime, at an average of 16.6 hours per year, compared with the overall average of 10 hours, the report said.