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

Mastering Thought Leadership
Mastering Thought Leadership: Four Key Challenges and How to Overcome Them

Initiating a successful Thought Leadership program requires careful planning and coordination at the concept stage.

Find Out More
New Tools, New Skills, No End in Sight: The Challenge of AI Adoption
New Tools, New Skills, No End in Sight: The Challenge of AI Adoption 

To really understand exposure to risk, you need to look at how a business interacts with the broader economy.

Find Out More
Trump talks business on GCC tour, with a sprinkle of diplomacy

The Gulf Cooperation Council (GCC) region concluded an eventful week as Saudi Arabia, Qatar, and the UAE hosted President Trump on his first major foreign trip since re-assuming office, underscoring an enduring strategic partnership.

Find Out More
Making sense of business transformation

To really understand exposure to risk, you need to look at how a business interacts with the broader economy.

Find Out More