IT Outages Cost Companies Billions Each Year | CIO Insight

IT Outages Cost Companies Billions Each Year

Dec 10, 2010
1 minute read

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.

For more, read the eWeek article: IT Outages Cause Businesses $26.5 Billion in Lost Revenue Each Year, Survey.

CIO Insight Staff

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