10 Tips for maximising the performance of your IT consultancy.
According to technology researchers Gartner, the average cost of IT downtime is $5,600 per minute and can range in cost from $140,000 per hour at the low end to as much as $540,000 per hour at the high end. Further, 98% of organisations report that an hour of downtime costs them over $100,000 – and some 81% of respondents indicated that 60 minutes of downtime costs their business over $300,000 – with some estimates as high as $1.5 million.
These numbers are based on research in the United States and take into account a range of industries. There is, however, no reason to believe that the numbers are significantly different in Australia – where downtime costs the average small business 545 hours per annum- with the costs associated with that time going well beyond salaries and wages costs. The point is that downtime is expensive, no matter what industry you are in.
The implication of downtime include but may not be limited to:
- Lost revenue.
- Lost productivity.
- Corruption of and gaps in mission-critical data.
- Damages to equipment and associated assets.
- Cost of remediating systems and core business processes.
- Damaged reputation with customers and key stakeholders.
- Degradation of employee morale.
- Regulatory, compliance, and legal penalties.
- Loss of insurance discounts; contract penalties.
- Disruption of supply-chain.
Impacting significantly on downtime is the response times of IT consultants and managers you use. Unfortunately, there is no research data on IT consultant response times in Australia. There is also no research data on the time it takes IT consultants to resolve issues. However, our research suggests that as far as clients are concerned, both times in Australia are too slow. Wolfe Systems has worked hard over the last two years specifically to reduce our average response and issue resolution times and are continuously working on getting both times down further.
Wolfe Systems is undertaking regular Service Efficiency Ratings presently and will be including these in all client monthly reports from May 2021. We strongly recommend that no matter who your IT consultancy is – that you hold them accountable for service efficiency – demanding monthly reports.
To minimise downtime, every business should:
- Engage an IT consultant that has the expertise and resources that meet your needs.
- Avoid using the growing number of IT consultancies with a high staff turnover.
- Ensure that your IT consultancy documents an annual strategy you can sign off.
- Ensure your IT consultancy sets acceptable and achievable response time targets.
- Hold your IT consultant accountable for their performance against target response times.
- Demand monthly IT Service Efficiency Ratings and open channels of communication.
- Ensure that your IT consultancy adopts a pre-emptive as opposed to a reactive approach.
- Demand that your IT consultancy is 100% transparent, open and honest – always.
- Ensure that you are using the latest technology – both hardware and software.
- Demand systems that deliver state of the art back up and rapid data restoration systems.
Downtime can destroy your profitability. Not all IT consultants have the expertise, resources, attitude and systems required to minimise downtimes. It is the primary responsibility of every IT consultancy to minimise client downtime.
To learn more about increasing the efficiency of your IT service and the value delivered by a Service Efficiency Rating, CLICK HERE
Alternatively, give me a call.
0488 445 044