Is outdated technology draining your organization’s resources? The answer is probably yes. According to a recent Deloitte survey, 82% of companies failed to meet their cost-reduction goals last year, with inefficient technology infrastructure being a key factor.
The 2024 poll of nearly 300 business leaders focused on improving business margins and transforming technology revealed that challenges with outdated tech are the biggest barriers to reducing costs. More than half of the respondents also highlighted that leveraging data and generative AI strategies to improve margins will be a priority this year.
What does this indicate? Businesses are eager to adopt new, automated, AI-driven methods to save money and boost efficiency but are held back by old, inefficient technology.
Why Businesses Must Upgrade Their Technology
Legacy systems—typically defined as technology that’s at least a decade old—can quickly become costly to maintain. These systems are slower, require frequent updates and patches, and lack the ability to integrate new features. As a result, businesses find it difficult to keep pace with their tech-savvy competitors across various areas, from scaling and cloud usage to human resources and customer service operations.
But there’s more. Outdated technology significantly increases the risk of cyber-attacks. Older systems often can’t keep up with the fast-evolving landscape of cybersecurity. As new and more dangerous threats emerge, older technology eventually falls behind in providing the necessary updates to keep your network secure.
So, why do business owners hesitate to update their technology despite clear data showing its positive impact on productivity and profitability? The main reason is often sticker shock. The cost of upgrading technology infrastructure can seem overwhelming. Savvy business leaders might worry about potential risks, asking questions like “What if something breaks?” or “What if it doesn’t work as promised?” However, data shows that maintaining old technology could be even more expensive. A separate Deloitte study of CIOs in 2023 found that respondents spent an average of 55% of their technology budget on maintaining existing systems.
There’s also the cost of switching to consider. What will it cost to bring the outdated system down and transition to a new one? How much will it cost to train employees to use the new software? These are questions your IT team can help you answer before you start upgrading. An experienced technician can analyze your current system, identify what needs updating, and create a plan to upgrade your technology efficiently. It’s easier than most business leaders think and yields significant returns in productivity and profitability.
If you’re ready to upgrade your technology or are tired of dealing with slow, outdated systems, we’re pleased to offer qualified organizations a complimentary discovery session. One of our expert technicians will assess your system and identify what you need to optimize your technology and enhance your business operations. To get started, call us at 410-720-3300 x2 or click here to book now.
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