Consulting Report
23 Jul 2024

The hidden costs of downtime: The $400B problem facing the Global 2000

In partnership with Splunk

Disruption in business is inevitable. The most successful organizations adapt to system stressors and bounce back by investing in digital resilience. However, unplanned downtime continues to challenge this resilience, costing the Global 2000 a staggering $400 billion annually—each company facing an average loss of $200 million per year due to unexpected digital disruptions.

This report, prepared in partnership with Splunk, uncovers both the direct and hidden costs of downtime, which include significant impacts on market cap and brand reputation. It reveals that IT and cybersecurity issues are almost equally responsible for downtime incidents.

Our findings indicate that companies can mitigate these substantial financial impacts by investing in cybersecurity and observability tools, leading to less downtime, faster response, and reduced financial costs. This report provides valuable insights for executives to prioritize digital resilience and better prepare their organizations for the inevitable disruptions of the future.

Download the full report to explore the data and recommendations in detail.

The experts behind the research

Our Economic Consulting and Thought Leadership teams are world leaders in quantitative economic analysis and original, evidence-based research, working with clients around the globe and across sectors to build models, forecast markets, run extensive surveys, and evaluate interventions using state-of-the art techniques. Lead consultants on this project were:

Anubhav Mohanty

Associate Director, Economic Consulting

Teri Robinson

Managing Editor, Technology, Thought Leadership

Aidan O’Farrell

Research Associate, Thought Leadership

You might be interested in

Hands of a humanoid robot and of a human trying to touch each other
Are humanoid robots creepy?

Some very smart people are betting that machines shaped like humans will do much of our household and factory work for us in the near-ish future. But hurdles remain.

Find Out More
How can tax and finance leaders build agile functions that thrive?

Building continuous transformation into tax and finance functions can equip them to use AI, adding rich, deep insight and value to businesses.

Find Out More
AI: The next generation of automation

explore how automation and AI are transforming operations across manufacturing, retail, and logistics. From empowering frontline workers to driving measurable efficiency gains, organizations are using intelligent operations to boost productivity, customer satisfaction, and competitiveness in a fast-changing global economy.

Find Out More
EY Global EHS Maturity Study
EY Global EHS Maturity Study

Oxford Economics, in collaboration with EY, conducted a survey to explore how strategic Environment, Health, and Safety (EHS) investments provide a competitive edge in today's volatile world. Gathering insights from 526 global EHS professionals and C-suite leaders, our research reveals that organizations investing in EHS report significant boosts in reputation, resilience, and operational efficiency. Those furthest ahead, the EHS leaders, align EHS with broader business strategy resulting in improved performance. Notably, 81% of EHS leaders say their initiatives have led to increased commercial value. The study offers a roadmap for embedding EHS initiatives to unlock new levels of organizational resilience and efficiency.

Find Out More
[autopilot_shortcode]