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CUSTOMER IMPACTING INCIDENTS INCREASED BY 43 % DURING THE PAST YEAR
PagerDuty , a global leader in digital operations management , released a study of 500 IT leaders and decision-makers of companies with more than 1,000 employees responsible for IT operations from the United States , the United Kingdom and Australia that highlights the growing impacts of customer-facing incidents and the ways automation can help mitigate these . The findings illustrate the significant length and cost of incidents : the average incident takes nearly three hours to resolve ( 175 minutes ) while the estimated cost of downtime is US $ 4,537 per minute , meaning each incident can cost nearly US $ 794,000 . As respondents ’ organisations saw an average of 25 high-priority / priority incidents in the last 12 months , the cumulative costs add up to just under US $ 20 million per year , per organisation .
“ PagerDuty ’ s global survey found that incidents have been driven by increased complexity , rapid expansion of digital services and insufficient investment in IT infrastructure maintenance ,” said Eric Johnson , Chief Information Officer at PagerDuty . “ The costs of these incidents are significant both financially and in lost consumer trust , which is why companies need to invest in automation to mitigate the risk and shorten the time an incident lasts . Investing in automation needs to be at the top of IT leaders ’ priority lists .”
Other key findings of the data include :
• Over half ( 59 %) of IT leaders say that customer-impacting incidents have increased , growing by an average of 43 % in the last 12 months
• 78 % of IT leaders in travel say customer-impacting incidents have increased
• 68 % of IT leaders in finance say customer-impacting incidents have increased
• Organisations with at least five manual processes in incident response incurred US $ 30.4 million in annual costs of customerfacing outages vs . US $ 16.8 million for those with at least five processes fully automated
• Sixty-nine percent of IT leaders say the board and management are failing to invest in protecting customer trust when outages occur
• Nearly a quarter ( 24 %) of IT leaders reported outages negatively impacting share prices
• More than a third ( 35 %) of IT leaders have seen higher levels of employee burnout
• More than 70 % of IT leaders report that remediation , mobilising responders , collaboration between teams and internal communications with stakeholders are yet to be fully automated
Digital incidents continue to rise in number , last longer and cost more , but organisations are also understanding the critical role automation can play . Eighty-six percent of IT leaders surveyed say that their organisation is making strides towards fully automating the end-to-end incident response process .
“ Digital incidents occur , and front-line responders are too often hindered in their ability to resolve incidents quickly due to fragmented IT environments , inadequate processes and inability to identify the right responders ,” said Jeffrey Hausman , Chief Product Development Officer at PagerDuty . “ Automation can be a key enabler in achieving resilience in these increasingly complex environments . With automation built into the PagerDuty Operations Cloud , businesses can streamline repeatable , critical work across incident response and service management to reduce the staggering financial costs of incidents .” x
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