The increased integration of technology into production processes and equipment have forged new efficiencies and operational capabilities in today's manufacturing landscape. Yet, this digital fusion has a downside: increased vulnerability to cyber threats.
According to a recent IBM security report, manufacturing is a prime target for hackers, accounting for 23% of all cyberattacks worldwide. Moreover, the financial toll is incredibly steep for manufacturers, with manufacturing experiencing the highest average ransomware payment across all sectors, costing $2,036,189 per ransom payment.
Many manufacturers, wary of the external threat landscape, have turned to third-party IT providers for cybersecurity solutions. While this may seem like a “fool-proof” option on the surface, anytime you work with a third party — even an IT provider or software provider — there can be additional risk factors. According to WEF’s Global Cybersecurity Outlook 2022, indirect cyberattacks — those gaining access via third-party providers — have jumped from 44% to 61% in recent years.
Knowing this, if you have, or plan on outsourcing your IT functions, you need to be careful about who you trust with such a critical aspect of your business operations. A poor choice in IT providers may not only fail to mitigate external risks but can actually escalate them.
A third-party IT provider, commonly called an IT services provider or managed service provider (MSP), is an external company that offers specialized IT services. These services range from data and software management to network administration and maintenance to cybersecurity to cloud solutions, each tailored to meet a manufacturer’s specific needs. Common services include everything from proactive IT management to data safeguarding to threat analysis.
So, if they’re supposed to function as the first line of defense, why do so many third-party providers increase your organizational cybersecurity risks? Here are a few reasons:
Remember that not all IT providers are the same. Each third party must be thoroughly evaluated on its capabilities, expertise, and costs.
Hiring an IT provider can be a strategic move to optimize your technology infrastructure and streamline your digital operations. These professional services offer a range of benefits from expert technical support to cost-effective solutions tailored to your specific needs. However, like any business decision, there are also potential drawbacks to consider.
Here are some pros and cons to consider when choosing an IT provider:
With so much to consider, how do you decide on the right IT provider?
Start by clearly understanding your own needs. Are you seeking general IT support, or do you have specialized cybersecurity requirements?
For example, if you're a DoD (Department of Defense) SMM, compliance with NIST SP 800-171r2 is a crucial requirement. Knowing your needs will narrow your choices and set a benchmark for evaluating potential providers.
Next, focus on the experience and expertise of the providers. It's not just about how long they've been in the business but also about their familiarity with your specific industry. Check if they have case studies, references, or past work experiences with companies of a similar size and scope. This will give you insight into how well they can manage your threat environment.
Then, consider the range of services the provider offers. The ideal provider should function as a one-stop IT shop, from network management and data backup to cybersecurity and cloud services. A provider with a comprehensive set of services will be more equipped to handle the multifaceted IT needs of your business.
When it comes to security, check for the following:
You must proceed with caution whenever you allow any party within your virtual security perimeter. Screen them carefully before you entrust your cyber defenses to them. Improper due diligence when selecting an IT provider could expose your business to unnecessary risks, both operational and security-related.
When choosing a provider, be wary of candidates who lack transparent communication about costs and strategies, offer no tailored solutions, or fail to provide credible references. These are early warning signs that could signal deeper issues on the horizon.
Similarly, when you reach the point of screening for experience, look for red flags like no disaster recovery plan, a lack of regular training or certification, and no proactive maintenance or strategy.
First, you must define clear contracts and service level agreements (SLAs) with your prospective IT provider. These documents should meticulously outline the expectations and responsibilities of both parties.
Additionally, don't just follow a set-and-forget mindset. Instead, conduct regular audits and reviews to ensure the provider consistently meets the agreed-upon standards.
Finally, ensure your IT service provider understands your company's information security policies. This alignment is crucial for maintaining the integrity and confidentiality of your data.
Establishing an exit strategy is an essential yet often overlooked element of protecting your business. Your SLA should include comprehensive clauses on how to amicably part ways if the relationship goes south.
For instance, it should detail what you’re responsible for if you decide to terminate the contract, how you will get access to your data, and if any fees are due to end the contract.
Considering these elements helps ensure a clean separation between the two parties and that you won't be left flat-footed and scrambling to safeguard critical aspects of your business.
In the high-stakes world of cybersecurity, vetting your service provider is a critical first step. Approach the selection process with a healthy dose of skepticism — let them earn your trust by proving their capability and expertise in the field.
Need help with navigating the complex world of cybersecurity?
If you want to strengthen your digital infrastructure, CMTC is ready to assist. We specialize in helping small and medium-sized manufacturers identify vulnerabilities and secure their digital domains.
Reach out today for a comprehensive assessment.