The cost of doing business: Why downtimes can increase operating Costs

Posted by belfast2014 on February 19th, 2015

UK businesses may not realise that downtime doesn’t just hurt a business after a downtime occurs. Business heads need to consider that downtime can influence the amount of revenue that a company makes annually. The average recovery time after an incident is 134 minutes and the average costs are more than £680,000. Did you know these unplanned IT outages can cost businesses more than £5,000 a minute? Why does it cost businesses so much? Companies may not budget for things such as data recovery services in the UK or hard disk recovery in the UK or server data recovery. However, companies need to consider these expenses as well when they think of the true costs caused by downtimes. A disruption affects the company’s ability to provide on the supply chain. It can also affect the company’s ability to be responsive to customers and to deliver their products or services on time.

How can the true costs of downtime be calculated? Company heads must look at the gross costs, the total yearly business hours and divide the gross costs by the total annual business hours. Then, it must be multiplied with the percentage impact and the number of hours per outage. In order to have a true cost of an outage, companies must include their service costs. Those service costs may not include the cost of server data recovery, data recovery services in the UK or even Hard disk recovery uk, if needed. However, these costs also need to be included in the cost of doing business. Company employees may not realise that the bottom line with the shareholders is that downtime can have an effect on the value of the shareholder’s stock.

Company’s downtime doesn’t just affect company Employees

If a company does have downtime thanks to a network virus, it can affect customer loyalty and also company reputation. To predict lost sales accurately, companies need to predict how the loss of data will affect customers. Will customers join a competitor if a company does suffer and are not able to deliver the company’s product or service within the specified delivery time? Customers may have doubts about the company’s credibility after data losses and a downtime is suffered.

Customers may decide to stop being as loyal to a brand they have bought for years if a company cannot deliver on-time. This is why a single instance of downtime of only a few hours can affect a company and cause employees to have a lowered morale. Some companies may not look at these soft costs when considering the true cost of lost production due to downtime. How much is server data recovery or hard disk recovery in the UK if it is needed for a few hours or for several days? However, every cost must be considered for a company to determine how much it costs to replace an employee or replace a single customer if a longer downtime does occur.

Does your company have a policy in place if they do need server data recovery services in the UK or hard disk recovery in the UK? What has been your experience if you have experienced some downtime? At Belfast Data Recovery, we also offer our 15 years of experience in many other data recovery services so that your documents stored on Raid arrays and your sensitive data, and more is safe. We can help you recover lost data from internal and external hard disk drives. To see how our services can help your business, visit us at: www.belfastdatarecovery.co.uk