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INSIGHTS / Media Coverage

Fortunes lost on fragmented communications

 22 Oct 2007 
INSIGHTS / Media Coverage

Fortunes lost on fragmented communications

 22 Oct 2007 

A new survey by Siemens Enterprise Networks claims that businesses are sacrificing $14.5 million each a year in lost productivity due to fragmented communications. The survey quantified productivity losses from waiting times, travel times and other factors which could be reduced if effective unified communications systems were implemented.

Siemens claims that 94% of respondents waited 5.3 hours per week for information from others to complete tasks, which it says translates to $10 million in lost productively for a business with over 1000 employees. It also says $3800 per year is wasted on what would be unnecessary travel costs, worth $3.8 million per year for a 1000 employee business.

“Aside from the hard costs uncovered in the survey, there are soft but very real costs in terms of customer responsiveness and satisfaction,” said Jim Burton of market research firm UC Strategies.

A separate report by software testing company Planit claims that overspending in software projects in costing Australian organization $86.7 million a year. The report says average software development projects cost organizations $199,033 per week, and claims that the telco sector had the highest spending, with 23% of their budget going towards testing software.

“Companies which undertake testing of their software projects, and plan for that testing from the beginning of a project, are more successful than those that don’t,” says Planit MD Chris Carter.

“The index also clearly shows we are losing millions of dollars each year through unsuccessful projects-yet still there are development teams and entire companies out there who treat testing as an afterthought, if at all.” The report claims that the average budget for “most important projects” is $15.9 million.

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