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Sunday, May 20, 2012
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It is very common for business owners to calculate the total cost of ownership (TCO) for I.T. as the total dollar value spent on hardware, software and services. In a poorly managed I.T. environment the greatest cost when calculating TCO for I.T. may be the cost of lost productivity that results from unresolved application issues, hardware failures, system downtime, and the lack of appropriate employee training on business-critical  I.T. systems - just to name a few.

How many hours of productivity a month do you or your employees lose trying to resolve computer problems? Calculating the true hidden costs of lost productivity can be an eye opener. Enter the values that best reflect your situation into our Hidden Cost Calculator form shown below to get a real-time cost of lost productivity.

The hidden cost calculator requires Javascript be enabled in your web browser to function properly.

The Hidden Cost of Downtime Your Employee Information
SAMPLE DATA
Employee Annual Salary $60,000 $80,000 $100,000
Monthly Salary $5,000 $6,667 $8,333
30% Overhead for Benefits, Taxes and Insurance $1,250 $2,000 $2,083
Total Monthly Cost $6,250 $8,667 $10,000
Total Hourly Cost $48.08 $50.00 $80.13
Annual Gross Sales Generated by Employee $0 $0 $0
Hourly Revenues Generated by Employee $0 $0 $0
Total Hourly Value of Employee $48.08 $50.00 $80.13
Average number of hours of lost productivity per month as a result of system downtime and/or less than optimum performance
2 2 2
Employees dependency on I.T. systems 75% 75% 75%
Monthly Cost to your Business
(Assuming a 50% reduction in overall productivity)
$96.16 $50.00 $160.26
Average lifetime of a PC or laptop 3 3 3
Total Lifetime Hidden Cost Per PC $3,462 $1,800 $5,769

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