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Why Delaying Digital Upgrades Can Derail Your Business
Key Findings:
- Businesses waste an average of $4,072 per employee annually due to outdated technology issues, and American businesses as a whole lose $1.8 trillion a year
- 57% of employees report their productivity is hindered by outdated tech
- 66% of small businesses were victims of cyber incidents in the past two years, with 60% of those attacked going out of business within six months
- Mukesh Choudhary of Finoit gives advice on how businesses can combat issues with outdated tech
In today’s rapidly evolving business landscape, staying ahead of the curve is a necessity for any business. Yet, on average, 31% of an organization’s technology is outdated, which could lead to drained resources and hampered productivity. This isn’t merely about missing out on the latest tech fads or newest gadgets on the market; it’s about the significant harm being done to your business’s true potential.
Fortunately, business expert Mukesh Choudary from Finoit, a leading software development company, is here to shed light on the real costs of tech procrastination and how businesses can avoid these pitfalls.
Running On Fumes
As Mukesh explains, “Running a business on outdated technology is like trying to race a car with a leaky fuel tank. You’re constantly stopping to refuel, but you’re never getting any further ahead.” Antiquated tech isn’t just slow; it’s a productivity killer.
A 2024 workplace report found that 57% of employees feel their productivity is ‘hindered’ by outdated tech. Employees spend more time troubleshooting and less time innovating, leading to frustration, burnout and, in rare cases, all-out desk rage.
Mukesh points out, “Imagine trying to send an email with dial-up internet. That’s the level of frustration your team feels when they work with outdated tools. You might as well be sending smoke signals!”
Security Risks
Cyber threats are constantly evolving, and machines with databases that haven’t been updated are like a drop of blood to a great white shark. In other words, your business is vulnerable to data breaches, which can be incredibly costly and put current and prospective clients off.
MasterCard reports that in the past two years, 66% of small businesses were victims of a cyber incident, while a Verizon report stated that around 60% of small businesses who suffer a cyberattack go out of business within six months.
“You wouldn’t leave your home’s front door wide open in a dangerous neighborhood,” says Mukesh. “Neglecting cybersecurity is doing the same with your business. The gaps in your defenses can lead to costly data breaches that drain financial resources, damage your reputation, and deter potential clients. The financial impact can be so severe that many businesses never recover.”
Tooling Up The Talent
A good craftsperson never blames their tools. But when businesses lag in tech adoption, they risk losing top talent to competitors who provide more advanced, efficient systems.
One study reported on by Forbes found that 21% of tech employees who were considering leaving their jobs were doing so because of “working with outdated technology”.
“No one wants to drive a horse and buggy when there’s a Ferrari in the garage next door, ” Mukesh quips. “You risk losing your best employees by not upgrading the tools they’re working with.”
The Compounding Cost of Delay
The cost of not upgrading isn’t just immediate; it compounds over time. The longer you put it off, the more you’ll have to invest to catch up.
Research shows that inefficient or old technology cost American businesses a staggering total of $1.8 trillion each year. Meanwhile, U.S. businesses on average waste $4,072 per employee each year due to tech issues caused by outdated systems and equipment.
Mukesh warns, “Delaying tech upgrades is like ignoring a small crack in your windshield. Eventually, it spreads, and you’re looking at a full replacement instead of a simple fix.”
Roadmapping To Success
Assessing your current tech stack and creating a roadmap for upgrades is crucial. Start by conducting a thorough audit of your existing infrastructure and identify areas that need immediate attention.
Mukesh advises, “Break it down into manageable steps, baby steps if you have to. Prioritize critical upgrades first and set a realistic timeline for implementation. Who knows, you may have time to install a few extra monitors! But it’s important to remember, it’s about steady, sustainable progress, not overnight perfection. There are some things that can’t be remedied in an instant no matter how much money you throw at it.”
Mukesh Choudhary, Co-founder and CTO of Finoit, added:
“While the costs of outdated technology are clear, businesses must approach upgrades strategically. Consider implementing a ‘tech debt’ reduction program, where a fixed percentage of your IT budget is allocated to modernizing legacy systems. This proactive approach not only prevents the accumulation of outdated tech but also smooths out the financial impact of upgrades over time.
Additionally, explore ‘as-a-service’ models for both hardware and software. These subscription-based solutions can provide more flexible, scalable, and cost-effective alternatives to large, upfront investments in technology infrastructure, allowing businesses to stay current without breaking the bank.”
About Finoit
Finoit is a software development company that works with SaaS and software startups to build scalable and secure software products and AI solutions using modern technologies. With over 13 years of experience and proven credibility, the company has worked with over 100 software startups to build successful products and has many notable success stories.
Methodology
Staggering Stats That Show How Outdated Technology Could Be Damaging Your Business on PSP-IT
The Price of Procrastination in Business: Turning Monkey Business into a Money Business by Sameer Bhaduri
57% of employees hindered by outdated tech: FreshWorks
60% of small business go bust after cyberattacks: Verizon
66% of small businesses victim of cyber incidents: MasterCard
21% of tech employees leaving because of outdated tech: Forbes
$1.8 trillion lost each year: JD Young
$4,072 spent per employee due to tech issues: Electric.ai
This article was brought to you by Finoit website
Thank you,
Glenda, Charlie and David Cates
