PagerDuty Survey Reveals Customer-Facing Incidents Increased by 43% During the Past Year, Each Incident Costs Nearly $800,000
PagerDuty's latest survey of 500 IT leaders reveals a 43% increase in customer-facing incidents over the past year, with each incident costing nearly $800,000. These incidents take nearly three hours to resolve, translating into significant financial losses and reduced customer trust. The survey highlights the importance of automation in mitigating these issues, as organizations with automated processes incur significantly lower costs. Key findings include a rise in incidents across various sectors, underinvestment in IT infrastructure, and increased employee burnout. PagerDuty emphasizes the need for automation to streamline incident response and reduce costs.
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The average incident takes nearly three hours to resolve and rising costs of incidents are largely compounded by lack of automation
These are some of the results from a study of 500 IT leaders and decision-makers of companies with more than 1,000 employees responsible for IT operations from
“PagerDuty’s global survey found that incidents have been driven by increased complexity, rapid expansion of digital services and insufficient investment in IT infrastructure maintenance,” said Eric Johnson, chief information officer at PagerDuty. “The costs of these incidents are significant both financially and in lost consumer trust, which is why companies need to invest in automation to mitigate the risk and shorten the time an incident lasts. Investing in automation needs to be at the top of IT leaders’ priority lists.”
Other key findings of the data include:
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Over half (
59% ) of IT leaders say that customer-impacting incidents have increased, growing by an average of43% in the last 12 months.-
78% of IT leaders in travel say customer-impacting incidents have increased. -
68% of IT leaders in finance say customer-impacting incidents have increased.
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Organizations with at least five manual processes in incident response incurred
in annual costs of customer-facing outages vs.$30.4M for those with at least five processes fully automated.$16.8M -
69% of IT leaders say the board and management are failing to invest in protecting customer trust when outages occur. -
Nearly a quarter (
24% ) of IT leaders reported outages negatively impacting share prices. -
More than ⅓ (
35% ) of IT leaders have seen higher levels of employee burnout. -
More than
70% of IT leaders report that remediation, mobilizing responders, collaboration between teams and internal communications with stakeholders are yet to be fully automated.
Digital incidents continue to rise in number, last longer and cost more, but organizations are also understanding the critical role automation can play.
“Digital incidents occur, and front-line responders are too often hindered in their ability to resolve incidents quickly due to fragmented IT environments, inadequate processes and inability to identify the right responders,” said Jeffrey Hausman, chief product development officer at PagerDuty. “Automation can be a key enabler in achieving resilience in these increasingly complex environments. With automation built into the PagerDuty Operations Cloud, businesses can streamline repeatable, critical work across incident response and service management to reduce the staggering financial costs of incidents.”
The survey was conducted online between May 31, 2024 and June 6, 2024 by Censuswide on behalf of PagerDuty. All survey findings and methodology are available here.
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About PagerDuty Inc.
PagerDuty, Inc. (NYSE:PD) is a global leader in digital operations management, enabling customers to achieve operational efficiency at scale with the PagerDuty Operations Cloud. The PagerDuty Operations Cloud combines AIOps, Automation, Customer Service Operations and Incident Management with a powerful generative AI assistant to create a flexible, resilient and scalable platform to increase innovation velocity, grow revenue, reduce cost, and mitigate the risk of operational failure. More than half of the Fortune 500 and nearly
The PagerDuty Operations Cloud
The PagerDuty Operations Cloud is the platform for mission-critical, time-critical operations work in the modern enterprise. Through the power of AI and automation, it detects and diagnoses disruptive events, mobilizes the right team members to respond, and streamlines infrastructure and workflows across your digital operations. The Operations Cloud is essential infrastructure for revolutionizing digital operations to compete and win as a modern digital business.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240627388939/en/
Amberly Asay Janke
media@pagerduty.com
SOURCE PagerDuty
Source: PagerDuty, Inc.
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