Delaying major expenditures to upgrade outdated technology may seem like a good idea for your bottom line, but in reality, it could be costing your business more than it saves and putting you in harm’s way for a crippling security incident. Although the potential downtime to learn a new system and have your employees trained can be frustrating, it is worth it in the long run. And, you will also enjoy the peace of mind knowing your data is protected and your network is properly monitored to thwart bad actors that try to attack your business though techniques that taret and prey on older technology.
The costs incurred from using outdated tech may appear minor, but once you make the upgrade, you should notice a more positive trend to your ROI. While some costs are tangible, others tend to be part of a cause-and-effect relationship where the expenses are less detectable.
6 Costs of Using Outdated Technology
Legacy technology is anything outdated with a newer version available. While it can keep your business running, it is costly in terms of productivity levels, security, and maintenance. Let us review a few specifics of where dated technology might be costing your business more than you think.
1. Productivity
Integrations, accessibility, and automation are embedded within most modern systems. Data is shared through integrations, working from anywhere is easy with multi-device accessibility, and automation performs recurring tasks to save your staff time. These functionalities can necessitate upgrades to equipment, higher bandwiths, software, and data storage and access, but yield higher business efficiencies than maintaining the status quo.
Another significant cost related to productivity is the tendency for aging tech to be slower and experience an increased number of errors. Even with proper maintenance, older programs can still have a lot of downtimes. You do not want your employees unable to function at their normal productivity levels or worst-case scenario, experience a complete system failure where all of your data is lost.
Reverting to pen and paper orders that need to be hand-delivered to the appropriate department wastes valuable time. Do not miss out on increased productivity levels by sticking with antiquated systems that are likely to break down.
2. Security
A major concern for any business should be security. Many industries have regulatory entities that hold compliance standards around security. When these regulations are not followed, it can lead to fines and other fees.
If your CRM and/or database are outdated and do not receive updates, your business and customer data could be at risk. The cost of a data breach is incalculable. It requires the costs to recover any lost data (if possible) and the expense of contacting those affected and providing them with assistance to protect their identities. A privacy invasion is also likely to damage your company’s reputation. Upgrade your technology with expert advise and avoid a breach of any sensitive information.
3. IT Support
The IT support to preserve obsolete tech can put a severe dent in your bottom line. In the case of older software, phone systems, or computers, most do not receive updates from the manufacturer and therefore suffer errors. If there is an issue, you will need to pay a specialist for repairs and to attempt any required data recovery. And restoring data after a system failure is not always possible.
Do not put your business in a position where you are risking its livelihood. Newer technology requires less upkeep and attention to maintenance, allowing your IT employees more time to focus on other tasks. For those outsourcing IT support through managed services, you will have a more predictable budget to allocate to IT and elsewhere.
4. Labor
When businesses have difficulties with aging technology, they also face another problem – meeting deadlines. Clients do not care if your software was down for three hours, three days, or three weeks. They want their delivery on time, as initially agreed upon. After getting back up and running, you may need to pay your employees overtime or outsource some of the responsibilities in order to complete the work according to schedule.
These labor costs could be avoidable by replacing your outdated tech. It may be a wash for the first year or so to cover the initial investment; however, in the long term, you will experience the cost benefits in the form of a reduction in labor expenditures.
5. Employee Turnover
Dealing with a slow program that has constant issues can be frustrating and stressful for leadership and general employees. It is hard to perform your job well when the software and/or equipment cannot keep up. It can eventually lead to low employee morale and in turn, increased turnover.
The average cost per hire and onboarding/training is about $18,000. Can you continue to waste $18,000 or more every few months as new hires become defeated and move on to another company? Employees want a job where technology helps them to do their job, not one that hinders their efforts.
6. Client Churn
Companies that choose not to upgrade their technology may be risking losing their clients. Those concerned with privacy and security, or looking for better user experiences, may leave to work with your competition.
Updating your technology can help to differentiate your brand from others in your market. Are you offering a better client communication option? Is your service ability more attractive? Is your client experience seamless across many platforms? What about your competitors? These are all aspects where your brand may be able to stand out with new and better technology.
When it comes to client satisfaction, reaching service personnel or any other contact at your company should be quick and straightforward. Do not let a poor user experience or lack of security cause you to lose business and miss out on new clientele.
Think about your organization for a moment and ask yourself the following questions:
What slows down your team each day?
Is it time to update your primary software system or CRM?
Are labor costs holding you back from expanding?
Is your legacy phone system causing more trouble than it is worth?
Are your sensitive business information and client data secure?
Is the Internet speed lacking the oomph to keep up with cloud-based platforms?
After reviewing the above factors and questions, we hope that you understand the hidden costs of using outdated technology. If your technology is holding back your enterprise or small business, contact River Run to discuss your needs and learn more about our services. Our award-winning client service, project management, and volume pricing for IT purchases are available literally 24/7.
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