Is your organization bleeding money due to outdated technology? According to a recent survey by Deloitte, a staggering 82% of companies failed to meet their cost-reduction targets last year, largely due to inefficient technology infrastructure.
Insights from the 2024 Business Margin Improvement Survey
So, how does outdated technology drain your company’s funds? Outdated technology can significantly drain a company’s funds. The increased maintenance costs of older systems often lead to frequent repairs. These systems tend to be slower, reducing productivity as employees spend more time troubleshooting than working.
In a 2024 survey of nearly 300 business leaders, technology infrastructure challenges emerged as the primary barrier to improving margins through cost-cutting efforts. Over 50% of respondents indicated their focus for 2024 would be on leveraging data and AI strategies to enhance efficiency and reduce costs.
The Case for Technology Upgrades
Legacy systems, defined as technology over a decade old, are costly to maintain. They are slower, require frequent updates, and often lack support for new features. This technological lag hampers competitiveness across various business functions, from scaling and cloud utilization to human resources and customer service.
Security Risks of Outdated Technology
Outdated technology poses significant cybersecurity risks. As cyber threats evolve, older systems struggle to keep pace with necessary security updates, leaving organizations vulnerable to breaches and data compromises.
Overcoming the Hesitation to Upgrade
Despite the clear benefits of upgrading technology, many business owners hesitate due to perceived high costs and operational disruptions. However, maintaining outdated systems can be more expensive in the long run. A 2023 Deloitte study found that CIOs allocated 55% of their technology budgets to maintaining existing systems.
Planning Your Technology Upgrade
Transitioning to new technology involves assessing risks and costs upfront. Partnering with experienced IT professionals can streamline this process by conducting a thorough system analysis, identifying necessary upgrades, and devising an efficient implementation plan. The result is improved productivity and profitability for your business.
Get Started with a FREE Network Assessment
Ready to upgrade your technology or explore better options? MYDWARE IT Solutions Inc. offer a FREE Cybersecurity Risk Assessment to evaluate your current system and recommend tailored solutions—keep in touch with us today!