Many companies feel they are saving money by using legacy systems (outdated technology). However, what they don’t realize is the actual impact on their company, and it is not just monetary. Legacy systems impact all areas of business, significantly affecting productivity, efficiency, staff retention, and customer satisfaction.
At Connectivity, our IT consulting company can assist you with your digital transformation. In this blog, we will discuss the numerous ways outdated technology impacts a post-pandemic workplace.
The Effects of Outdated Technology on Daily Business Operations
Rising Maintenance Expenses
The older the technology becomes, the more challenging it is to keep it functioning well. Security issues will continue to mount and present themselves, leaving your system vulnerable to attack. New threats will emerge as developers dedicate less time to protecting outdated software. Additionally, if something needs repair, parts can become scarce and cost-prohibitive.
Older systems also require someone with specific skills to maintain them when compared to newer models. As time goes by, you will find that fewer technicians are familiar with your less optimal system.
Emergency calls are also expensive, as they can require escalation to more serious situations. Generally, being proactive about maintenance is more cost-effective than reacting to a problem. However, relying on old technology can make this almost impossible.
Decreased Productivity and Slower Operations
Canadian companies lose an average of 26% of their workweeks interacting with slow, outdated technology. Furthermore, IT developers spend 42% of their time managing legacy systems, rather than utilizing more innovative methods. They are constantly working to maintain outdated systems.
When you combine it with the cognitive energy required to switch between apps (toggle fatigue) frequently, it can result in lost revenue, substantial expenses, and increased operational costs for your company.
Modern technology allows us to complete more tasks in less time, thereby increasing both efficiency and productivity. However, if your business fails to keep up with technological advances, your company will start to slow down. Older technology often requires frequent repairs and is prone to more issues, resulting in increased downtime.
Additionally, more productive solutions often do not integrate well into older systems. This can create challenges for organizations that want to utilize valuable tools such as modern software, cloud-based solutions, or new technologies. It means relying on older systems can prevent you from utilizing newer tools due to compatibility issues.
While investing in hardware upgrades may be temporarily more costly, it has long-term benefits. New tech will not break down as easily, resulting in lower costs over the long run. Additionally, replacement parts are more readily available and cost less.
Growing Security Vulnerabilities
Failing to keep your business’s IT infrastructure current leaves you vulnerable to cyberattacks. Developers frequently commit fewer resources to older IT technologies. Aging applications and operating systems lack updated security patches and features, as well as software protection, which are necessary to prevent modern attacks from happening.
Furthermore, compliance requirements cannot be obtained using outdated technology, which could lead to non-compliance issues (especially under PIPEDA) for your company. Remaining current with modern technology is thus essential to avoid fines and maintain a good reputation.
Disaster Recovery
Outdated hardware is prone to failing more frequently, increasing your chances of data loss. Exacerbating the situation is the fact that old hardware often has compatibility issues with newer, modern backup solutions. This can make your disaster recovery preparations impossible.
It means you may find your business less competitive, your reputation may be tarnished, and your team may disengage.
Employee Retention
The pandemic highlighted that employees can work efficiently in remote locations. Surveys indicate that Canadians prefer remote or hybrid work, with 59% responding that they want to work partially remotely and 29% responding that they want to remain fully remote. Companies using outdated systems risk losing employees who prefer to work from home.
It has become increasingly apparent that many employees prefer to work remotely, and companies must adapt to this shift to allow for remote work. Unfortunately, outdated technology can prevent your team from taking their work from the office to home. Legacy systems often lack the proper structures to facilitate remote work.
Furthermore, working with outdated systems can be frustrating for employees, leading to lower engagement and higher turnover rates in a competitive market.
Customer Loss
Slow systems can cause people to vacate your business in numerous ways. Customers prefer solid communication, high-quality work, and efficient services. The slow technology used with legacy systems can cause customers to feel that they aren’t receiving the best service. They may turn to your competitor as a result.
Inefficient technology, characterized by its slow pace and outdated features, can hinder your operations and frustrate clients who expect exceptional service.
The Benefits of Remaining Proactive
- Current systems have the latest security patches. They will protect your business from ever-evolving cyberattacks.
- New software and devices improve your output and workflow by operating quickly.
- Employees appreciate operating with efficient, reliable tools. It makes work easier.
- Reliable technology equates to faster customer service and a polished, professional reputation.
- Investment in modern technology positions you for innovation, growth, and resilience.
Contact the IT Consulting Experts at Connectability
Our IT consulting firm provides managed IT services. Backed by over 25 years of experience, we have become a trusted provider in Toronto. Our company tailors our services to meet your business’s demands.
At Connectability, we ensure your systems are inclusive to empowering growth, thus increasing productivity and overall efficiency. We will make certain that you remain competitive in today’s fast-paced market with a professional technology audit.
To learn how we can make your networks and applications more efficient, please call us at 647-930-2250, email us at [email protected], or contact us here.
