Soft Costs Hit Hard

soft costs

Most business owners are under the impression that IT only costs what they budget for each month. However, IT typically costs much more than what the monthly spreadsheet indicates. Since IT-related problems bring your business to a halt, a business’s total IT costs include both the hard cost of buying new equipment and IT department salaries as well as the soft cost of employee downtime. The latter is much more difficult to quantify, and thus goes quietly unnoticed all too often.

To help businesses put a hard number on these soft costs, we developed a tool that crunches the numbers for us and pinpoints how much downtime is costing. By inputting basic company financial information like yearly revenue and average employee pay, we can get a pretty good idea of this lost revenue. Here’s a quick example of how it all works.


Company: Acme Distribution

  • Revenue: $3,000,000
  • Average Employee Wage: $35,000
  • Number of employees: 25


  • 15-minute IT problems per month: 25
  • 30-minute IT problems per month: 3
  • 120-minute IT problems per quarter: 1
  • Executive down problems per quarter: 1

This company loses $1,442 per hour in lost revenue for IT issues.


There are a few additional data points needed to get the full picture, but with a 30-minute meeting and a few more questions we can help you understand your total IT costs. If you want to see how much soft costs are costing your business, give us a call to set up an appointment.