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    Home » IT Failures Are Costing SA Companies Millions
    TECHNOLOGY

    IT Failures Are Costing SA Companies Millions

    July 27, 20264 Mins Read
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    Sega Tiro, Executive of Commercial and Growth at ASI Connect
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    Behind the scenes, a silent drain is eroding the profits of some of South Africa’s most ambitious companies. Most leadership teams don’t see it on any line item, but its impact is real. Recent industry research reveals that tech-related disruptions and friction cost local businesses between R3.2 million and R30 million for every 1,000 employees each year. This hidden expense is now on par with major fixed costs like property or logistics.

    Sega Tiro, Executive of Commercial and Growth at ASI Connect, puts it simply: “Every rand spent firefighting a server that should have been replaced two years ago is a rand not spent on growth. Your IT strategy is now your resilience strategy, and resilience belongs on the boardroom agenda.”

    Break-fix is a strategic, reputational, and customer experience risk for leadership teams. When technology fails, it isn’t just internal efficiency that suffers; customers notice, and their trust is easily shaken.

    For years, “wait until it breaks” was seen as a clever way to save money. But research and experience show the opposite: running IT reactively doesn’t reduce costs; it just moves them, often in unpredictable and damaging ways. For business leaders, these hidden costs threaten business continuity, sap competitiveness, and open up vulnerabilities that can hurt everything from M&A appeal to regulatory compliance.

    There’s a human cost, too. Employees who have to wrestle with unreliable tech every day are far less likely to recommend their employer. There is a staggering 105-point gap in Employee Net Promoter Score compared to those with dependable tools.

    Nearly half of South African staff say ongoing IT problems hurt their ability to serve clients, turning a back-office issue into a frontline headache. This is where technology directly impacts customer experience: every IT glitch can ripple outward, affecting client satisfaction and business relationships. For boards and executives, the message is clear: persistent tech troubles don’t just slow down systems, they erode culture, productivity, brand reputation, and customer loyalty.

    A strategic roadmap for boards

    But there’s a way forward. ASI Connect recommends a practical, three-pillar response that any business can use to benchmark its IT strategy. At its core, this is about digital transformation: adopting new mindsets and tools to keep pace with change, stay resilient, and exceed customer expectations. The approach helps leadership teams align technology investments with business goals, enhance ESG (Environmental, Social, and Governance) outcomes, and build a culture of ongoing improvement that adapts to new challenges.

    Lifecycle planning and asset management

    Retire infrastructure according to a clear schedule before performance dips. This turns unpredictable hardware failures into planned, budgeted upgrades and closes dangerous security gaps from outdated systems.

    Technology roadmapping
    Map digital investments to your business’s real goals, both now and in the future, to ensure every rand lays the groundwork for future-proofing your operations. This is the essence of digital transformation and change management: making technology not just a support function, but a driver of growth and adaptability.

    Continuous monitoring and edge defence

    Constant monitoring across networks, cloud, and devices means the small problems (like a failing drive or a local vulnerability) are caught and resolved before they snowball into major outages or security scares.

    In 2026, the choice isn’t about spending or saving on IT; it’s about choosing between predictable investment and unpredictable risk. For South African companies looking to future-proof their businesses and place the customer at the heart of every decision, proactive IT management is no longer just a technical detail; it’s a mark of strong leadership. Boards and executives should make IT resilience and digital transformation a regular part of their risk and strategy discussions, benchmark themselves against industry leaders, and challenge their CIOs and CTOs on digital readiness, change management, and customer experience.

    By Sega Tiro, Executive of Commercial and Growth at ASI Connect

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