The cost of IT downtime in the UK
New research from Managed247 finds that IT downtime is costing the UK economy £44bn a year. Based on a survey of 2,000 UK employees, the study puts a figure on a problem most businesses feel but rarely measure: the working time lost when systems slow, connections drop or people wait for technology to catch up. The striking part is that this cost has risen, from £35bn in 2018 to £44bn today, even as workplace technology has become more reliable.
Why downtime costs more, even as technology improves
The headline finding is a contradiction. Employees today report fewer software crashes, fewer outdated systems and more confidence in their technology than they did in 2018, yet the cost of downtime has gone up. The reason is dependence. Businesses now run on cloud platforms, Microsoft 365, video conferencing and remote working, so when a connection drops or a cloud system is unreachable, productivity can stop almost instantly. Technology has become more reliable and more critical at the same time, which means every lost minute costs more than it used to.
Connectivity is now the biggest cause of lost time
For the first time, internet and connectivity failures have overtaken software problems as the single biggest cause of lost productivity. Connection failures were the fastest-growing cause in the study, rising from 19 per cent to 24 per cent since the last survey of its kind, and the only major cause to get worse. As more of the working day depends on being online, the network has become the part of the stack a business can least afford to lose. Reliable network and connectivity support is now central to keeping people productive.
A persistent training gap
The research also found that more than three-quarters of employees, 77 per cent, had received no IT or digital training from their employer in the past year, a figure that has barely moved since 2018. Without basic training, people are less able to resolve simple issues themselves, which puts more pressure on IT teams and keeps businesses offline for longer. Closing that gap is one of the more achievable ways to reduce lost time.
The regional picture
Downtime is not felt evenly across the UK. Employees in Wales lose the most working time, with those affected reporting almost 24 minutes of every working day lost to technical issues, and the picture there has worsened since 2018. South England has improved the most over the same period, recording the lowest levels of disruption, while North England reports growing confidence in workplace technology but slightly more frequent issues than the south. The pattern suggests that investment in better technology is real, but its benefits are not yet shared equally.
How the figure was calculated
The £44bn figure was estimated from the working hours respondents reported losing to IT issues, combined with UK employment and earnings data to model the national productivity impact. The study surveyed 2,000 UK employees about how often they experience IT problems, how much time they lose, and the knock-on effect on their work.
Technology has become the backbone of almost every business, so even small disruptions now have much bigger consequences than they did a few years ago. What is striking is that businesses are experiencing fewer traditional IT failures, yet downtime is costing more than ever. That is because organisations are far more dependent on technology than they were in 2018. Businesses have invested heavily in digital transformation, AI and cloud technology, but resilience has to keep pace. Reliable connectivity, modern infrastructure and well-trained employees are no longer nice to have, they are essential for keeping businesses moving.John Pepper, CEO and founder, Managed247
What this means for your business
For most organisations, the lesson is not to spend more on technology but to make what they already run more resilient. That means treating connectivity as business-critical, keeping infrastructure current, giving people the training to use it well, and having support in place for when something goes wrong. This is the work we do for mid-market and enterprise organisations across the UK. Our managed and co-managed IT support keeps systems available and people productive. Our network and connectivity support protects the part of the stack the research shows now causes the most lost time. And our cloud services keep teams working wherever they are.
Frequently asked questions
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How much does IT downtime cost the UK?
Managed247 research estimates that IT downtime costs the UK economy £44bn a year, up from £35bn in 2018.
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How much time do employees lose to IT downtime?
The average UK employee loses 93 working hours a year, more than 12 working days, to IT issues.
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What is the biggest cause of IT downtime?
Internet and connectivity failures are now the biggest cause of lost productivity, having overtaken software problems for the first time.
Downtime has a number now. Make sure it is not yours.
Talk to our UK team about keeping your business online.