The Real Cost Of Poorly Supported IT

by | Sep 23, 2014 | IT Support

One of the matters we often discuss with prospective clients are our costs. As a prospective client, you will want to know the value you are getting from our services, for the costs you pay us for providing these services.

To get a proper understanding of the value of our services, you need to look at the costs associated with not having your IT systems working well. Let’s say for example that your servers and systems are just a little bit slower than they could be. This could be because of poor maintenance of servers, out of date hardware, or a slow internet or network infrastructure. It really doesn’t matter what the cause is, what matters is that it slows your staff down a little bit, just by 5 minutes every hour.

So over time per staff member, this 5 minutes of waiting time per hour translates into 40 minutes a day, 3 hours 20 minutes per week, 43 hours and 20 minutes per quarter, or 160 hours per year. To put this into perspective, this little 5 minutes waiting per hour turns into a full 20 days of loss productivity per year per staff member. That is basically a whole month a year each staff member spends waiting for your systems to catch up with the tasks they are trying to do.

Financially we can look at this in terms of the cost of idle wages. Let’s say for example an average staff member is being paid $25 per hour. In this case, your slow systems would be costing you $83.33 per week, $1,083.33 per quarter or $4,000 per year. If for example, you had 5 employees being slowed down by your systems in this manner, the cost to you would be $416.67 per week, $5,416.67 per quarter and $20,000 per year.

Now, $25 per hour for your average employee is an entry-level wage. For many businesses, this is less than the average wage we pay our employees. So what is the cost to your business for example if you were paying your employees an average of $30 per hour? Well, per employee it would be $100 per week, $1,300 per quarter and $4,800 per year. If you had 5 staff depending on your systems, your costs due to downtime associated with slow systems would be $500 per week, $6,500 per quarter or $24,000 per year.

It gets quite expensive, doesn’t it? And this doesn’t even consider the impact waiting for your systems to catch up has on the level of frustration of your staff members.

This is the real benefit you will get from using a company like Netlogyx to manage your IT services. We will make sure your systems and servers are performing optimally, ensuring your employees operate as close to capacity as we can.