Lack of proper diligence puts financial organisations at risk
Redditch – 18 August 2009 - At a time when financial organisations are struggling to recover during the economic downturn, many are putting themselves at further risk by not carrying out in-depth checks on their maintenance service providers. New research published today reveals that 4 out of 5 (79%) of respondents are focused on checking financial stability at the expense of critical factors such as the ability to meet key industry standards, customer references or manufacturer backed technical assistance.
Commissioned by Networks First, an independent provider of support services for network infrastructures to the financial sector, the research revealed that only half (51%) considered industry accreditations – both at company and engineer level – either ‘important’ or ‘very important’ when performing due diligence. A further 43% also did not place much importance on quality and security standards such as ISO 27001 and ISO 9001 or customer references (42%).
Commenting on the findings, Peter Titmus, managing director, Networks First, said: “Whilst it is heartening that most companies realise the significance of only doing business with other financially stable companies, we were surprised that in today’s business climate that it was not 100%. If your service provider goes out of business, it will make no difference if you’ve already paid for two years’ support – you could suddenly find yourself with none at all.”
Titmus continues: “It is also shocking to see the number of financial organisations who are still not checking a potential new business partner’s ability to meet a certain level of standard in terms of both quality and security. Without these checks in place, they are clearly putting their businesses at risk.”
One in two (51%) respondents placed importance on the ability of a provider to offer a ‘one stop shop’ of services. However, Titmus explains: “Whilst it is important that service providers are able to provide support across a whole spectrum of products and manufacturers, without checking on the qualifications or training of the consultants involved, you could be left high and dry. It is far too easy for unscrupulous providers to overpromise and under-deliver which is why due diligence becomes so vital if a company wants to ensure its IT and communications network remains up and running no matter what the circumstances.”
The area of due diligence which the financial sector deemed least important was in relation to if the service provider had access to manufacturer technical assistance centres, with less than 1 in 3 (31%) rating this as ‘important’ or ‘very important’. Titmus warns: “Without manufacturer backed technical assistance support, you can’t be sure your equipment is fully registered and therefore meeting legal requirements. It also puts you at risk of not getting the appropriate technical updates as they become available or having the necessary support when required. The financial sector really needs to be thinking about how critical it considers its IT networks and putting far more emphasis on due diligence in this area.
“Too many companies rely on contracts to protect them when in fact the actual protection is minimal. The penalties in contracts fade into insignificance if the service actually provided is well below the expected standard because the real cost of downtime is huge compared to the penalties paid for poor performance.
“The combination of a financially sound supplier who can prove they have the resource to meet their obligations is far more important than the last resort contract.”
Notes to Editors
About Networks First
Networks First is a specialist provider of converged network support services. Its people, passion and skills blend together creating a distinctive customer support experience. Going beyond the traditional ‘break fix’ approach, Networks First’s commitment is to the restoration and ongoing sustainability of networks. A partner focused support services organisation with multi-vendor and mixed technology capabilities, Networks First’s partners include Dell, Mitel and Westcon Convergence. Following its acquisition of ANS, a leading provider of support services for IP telephony solutions, Networks First is now the largest independent provider of converged network support services in the channel.
For more information
Please contact Louisa Constable/Emily Young at Portfolio Communications on 020 7240 6959 or email networksfirst@portfoliocomms.com
