A huge number of retailers are putting themselves at considerable risk by not carrying out in-depth checks on their maintenance service providers, according to a new study.
Research published this week reveals that the vast majority (91 per cent) 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 retail sector, the research revealed that less than three-quarters of respondents considered industry accreditations - both at company and engineer level - either ‘important’ or ‘very important’ when performing due diligence. A further 43 per cent also did not place much importance on quality and security standards such as ISO 27001 and ISO 9001 or customer references.
Peter Titmus, managing director of Networks First, said: “While 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, it was not 100 per cent. If your service provider goes out of business, it will make no difference if you have already paid for two years’ support - you could suddenly find yourself with none at all.
“It is also shocking to see the number of retail 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.
“It is far too easy for unscrupulous providers to over-promise 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.”
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