Escalating downtime losses are avoidable report says

UK organisations lose nearly 300,000 hours a year because of IT downtime.

The ‘Avoidable Cost of Downtime’ report by CA Technologies claims that time taken to restore failed IT systems costs the average UK organisation £208,000 a year through lost revenue, or over £2 billion collectively. During such periods of business-critical system interruption, the organisations polled reckon that their ability to generate revenue is reduced by 22 per cent.

Across the 200 organisations questioned in the UK, each suffers from an claimed average of 27 hours of IT downtime a year, which equates to almost 300,000 hours across the UK. Departments most likely to suffer during downtime were operations (76 per cent), finance (52 per cent), and sales (39 per cent).

The survey was carried out across 1,808 organisations in 11 European countries. Of the countries surveyed, companies in France experienced the highest average revenue loss from downtime at £424,000 a year. Italy experienced the lowest at around £29,000.

‘Avoidable Cost of Downtime 2010 Report’ also suggests that post-IT downtime (i.e., when IT systems are back up-and-running), there is an additional delay of 11 hours per year at each organisation during which time data is still being recovered. Across the UK that is another 120,000 hours when business operations are not fully operational. In this post-outage period when data recovery is taking place, company revenue generation is still hampered, down by an average of 16 per cent.

The survey was conducted by research firm Coleman Parkes. All interviews were undertaken during July 2010, based on a total of 1808 online interviews among CIOs/IT directors/IT managers, and a proportion of COOs/operations directors across an even split of small (50-499 employees), medium (500-999 employees), and large (1000+ employees) companies. A small proportion of finance directors were also interviewed to validate the accuracy of the company revenue figures obtained from the IT and operations executives.

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