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Businesses of all types and sizes today must navigate a complex matrix of vendors and partners. In many cases, there is frequent sharing of data, including sensitive and proprietary information, that could be problematic if hacked or stolen.

The advent of new technologies, including the Internet of Things, automation and cloud systems, make for the collection and sharing of information more accessible than ever before. However, the increased volume, accessibility and transfer of data creates problems and added risk for companies. To help companies protect information and minimize the risk of data theft, here are 6 answers to common third-party security questions.

1. How Can I Assess My Company’s Data Security?

The place to start is with an internal audit of your system. Which vendors have access to which data? How are they connecting to your networks and what can they access?

It’s smart to map your third-party partners, understanding who they are, how they access data and what data they can access. Make sure third parties only can reach information that is necessary. Often these audits can detect access that was given long ago to third parties that no longer should or need to have access.

2. What Can I Do to Assess My Third-Party Partners?

There are basic things you can do to ensure that third parties have the right safeguards in place when using your data. Asking for copies of their data security policies and audit results is an excellent place to start. If there are practices or results of concern, you can ask for more details. Some companies require their vendors to undergo a thorough security audit with detailed questionnaires or independent verification of processes and systems.

The practice is not just good business sense. Many new regulatory mandates, including the European Union’s General Data Protection Regulation (GDPR), require companies to ensure that third-party vendors are also compliant with the appropriate requirements.

3. What Foundation Do I Need to Data Security and Third Parties?

Be sure your organization has clear policies and procedures that govern data access and security related to third parties. Policies should be evaluated regularly to reflect new technologies or practices.

4. Who Is Responsible for Data Security?

Often, risk ownership can be a gray area as companies exchange data, update it and enter it into each other’s systems. A risk assessment matrix should be created that defines and tracks data within your corporate ecosystem. The matrix should include:

• Vendors, partners, customers and subcontractors throughout your supply chain
• Classifications of each third party based on how they interact with the organization
• Risk types mapped to each third party
• Risk levels assigned to each vendors’ assigned risk types

This exercise allows you to build a comprehensive risk assessment model to inform decisions, policies and access.

5. What Technologies Can I Use to Help With Security?

Ultimately, control rests with your organization. You can control the parties with access, the types of access, and the assets that can be accessed. Here are some tools to deploy to assist with that control:

• Encryption is effective in protecting data stored in your systems and transmitted to other parties. Encryption need not be applied to everything, but high-risk information merits investment in encryption tools.
• Two-factor authentication is another consideration. If you use multi-factor verification tools for internal access, you most certainly should do the same for external access.
• Risk-based authentication goes a step further. Rule-based access, such as only allowing access from a particular domain, can be incorporated into your security plan. If an access request does not meet the pre-defined rules, additional authentication layers are applied.
• Monitoring networks is a wise move. Monitoring what is accessed and by whom allows for a better understanding of information transfer. Firewalls that inspect data packets and issue alerts when unauthorized data are in play help prevent unwanted extrusion.

6. What Documentation Does My Company Need?

When you’ve determined your guidelines, policies and rules, be sure to put it in writing. Make it a part of your new contracts and insist on amendments to any existing agreements with third parties. Contractual guidelines help to protect companies from litigation as more plaintiffs go after multiple parties in the case of a data breach.

Not all contracts need to be the same when it comes to data access provisions, although it is good practice to establish a baseline of minimum requirements in all applicable third-party agreements.

With the growing threat of cyber attacks, an active approach to data security is a way for organizations to mitigate risk and ensure that data stay in the right hands.

Running a business is an expensive proposition, and it only starts with paying your vendors and employees. The tax codes can be a quagmire of confusion for many business owners, especially when it comes to more complex concepts such as the depreciation laws around technology. The good news is that there have been some meaningful changes around Section 179 for 2018, meaning you may be able to recognize compelling savings if you quickly take action before the end of the year. Here is how you can take advantage of this advanced tax savings while fitting in that technology spend before budgets reset in January.

Upgrade Your Tech, Earn a Tax Credit

While the Internal Revenue Code’s Section 179 sounds complicated, the net effect is quite simple. If you upgrade your technology during the year, you’re eligible to reduce your tax liability for that year by depreciating the equipment — even if you made the purchase on December 31, 2018. This accelerated deduction allows you to write off the entire cost of your technology upgrade, up to 1 million dollars for 2018 on purchases of up to $2.5 million in technology products. This effectively represents a 100% bonus depreciation for both new and used equipment. The government hopes that this extensive benefit will help support the growth and infrastructure investment of businesses throughout the country — which is quite likely considering the full breadth of the discount you can expect to see by taking full advantage of the tax credit.

What Are the Benefits of Accelerated Depreciation?

The accelerated depreciation that is a part of Section 179 of the tax code allows you to see immediate reductions to your tax bill. Applying for the tax credit is relatively straightforward, and there is a high degree of flexibility available in how the credit is utilized throughout the year. The savings can be substantial, especially if you decide to lease or finance your equipment for several years. Your tax professional may be able to help you properly structure a financing agreement that allows you to add software and equipment to your business without a net cash impact for the year.

What Are IRS Section 179 Guidelines for 2018?

The benefits that you can derive from Section 179 will change from year to year, so it’s essential to ensure that you have the most up-to-date information about this exceptional savings opportunity. For 2018, you can find the latest information on Section179.org, including details on timing, calculators to determine how the deduction will impact your organization, answers to frequently asked questions and more. The types of equipment that are included in Section 179 are:

• Construction equipment
• Farm equipment
• Medical equipment
• Printing equipment
• Vehicles
• Tools
• Office supplies
• Office furniture
• Computers
• Mobile devices
• Other electronics
• Software

Of all of the technology solutions that can be covered by Section 179, software is the most popular — but some limitations are involved with receiving your full tax credit on software.

Does IRS Section 179 Have Any Limitations?

Along with the total dollar cap, IRS section 179 does have some limitations. There are a few types of equipment that are excluded, but the tax credit is valid for most types of software and equipment. This credit is simple to use and can provide a significant boost to your bottom line — along with providing your business with some exciting new tech to start the new year. The purchase of software is one of the most popular ways for companies to utilize their Section 179 tax credit, but there are some considerations. The software must be available to the general public and must not be custom-designed for your business. The software must also have a determinable useful life of more than one year, be used for an income-producing activity and be financed with a specific type of qualifying lease or loan. Missing any of these requirements can negate your ability to utilize Section 179.

Currently, the following types of software are not eligible for Section 179 tax credits:

• Websites — although this may change in 2019
• Databases that are not part of the public domain
• Software that is highly customized for your organization

Want to learn more about IRS Section 179 and how your organization can leverage this savings opportunity? The official Section179.org website should be your first stop for any questions, but there is also a great deal of useful information on Investopedia.com. While it may be a little more difficult to wade through, you can always get your information straight from the source at the IRS.gov website, where they detail Section 179 deduction information, special depreciation allowances, MACRS and more. Need assistance working through how Section 179 can benefit your particular organization and the value that you can gain from new technology?

Watch our Section 179 training video.

Understanding your past financial data is essential to forecasting for the future. Without analysing the data, your emotions or your opinion of what you’d like to happen with your business in the future are likely to colour your forecast. One easy way to use your past data to predict your business future is to build a financial prediction using Microsoft Excel.

How to make an economic forecast using Microsoft Excel

1. Select your past sales data in Excel. The first step in creating your financial business forecast is to select the previous sales data that you wish to use. In most cases, you’ll choose the past three to five years. However, if a singular event, like the Stanley Cup Finals or the Winter Olympics being in town, dramatically impacted your sales and is likely to repeat in the future, your forecast will be more accurate if you leave that year (or at least that period) out of the data you use for your projections.

2. Click on Forecast Sheet on the Data tab. The next step is to click on “forecast sheet” located on the tab marked “data”. It’s located at the top of the page on the left side.

3. Enter the required information and hit Create. Next, you’ll need to enter the necessary information, such as the time period you’d like to forecast and, finally, hit create. You’ll have a forecast report projecting the sales and/or income into the period you selected.

How to use your forecast report to make smart business decisions

What can your forecast report be used for? If you know what your sales and income are likely to be for the next quarter or next year, you can make sure that you have the inventory, raw materials, staff and marketing that you need to support that level of sales. You can also use this report to discuss funding with your bank or another lender.

Data breaches never fail to stay at the top of news headlines, and these are news headlines that should be highly regarded if you are a business owner. According to the ID Theft Center, there were at least 1,579 breaches, which was a 44.7 percent increase from the year before.

A Look at Early November 2018 Data Breaches

The astounding uptick in data breaches is expected to continue as a trend for 2018, and the first half of November 2018 has already shown multiple problems. Take a look at some of the breaches that have occurred already in November for 2018.

Ontario Cannabis Store/Canada Post

The legalization of cannabis across the country in Canada brought about a lot of prickly, unfamiliar situations for consumers and business owners. However, to worsen matters, their new and booming industry took a hard hit because of a massive data breach during the first part of November. The data breach was in the form of a hacker who managed to get into Canada Post’s delivery tracking tool.

Customers who had purchased cannabis for mail delivery from Ontario’s Cannabis Store had their information exposed. This data risk is considered severe because those in the up-and-coming cannabis business in the country could face concerns with consumers about the privacy of their personal information. This data breach affected as many as 4,500 customers.

HSBC Bank USA

Domestically, a significant data breach with one of the top names in banking left financial institutions and consumers alike a bit fearful. HSBC Bank had multiple customer accounts compromised. To date, the number of accounts compromised and customers affected has not been disclosed. Nevertheless, this has been considered a severe data breach because the data taken can be severely damaging to consumers who hold accounts at the institution.

The risk to related businesses because of this kind of breach is pretty massive. Banking customers place money in their accounts because they trust the institution will keep it secure. This kind of data breach with one of the world largest banks does not fare well in the minds of consumers; it only lessens their overall faith in banking systems as a whole. So far this year, financial institutions have taken a hard hit.

Other Data Breach News Around the Globe for November

Pakistan had an epic fail in November with hackers managing to get the account information of at least 8,000 banking customers. This data breach didn’t just affect one bank; it actually affected customers from ten different banks across the country. The stolen data has already shown up on the Dark Web as records for sale for prices between $100 to $160 per record. So far, the cybercrime division in Pakistan has found more than 11,000 records.

Noteworthy Data Breaches So Far in 2018

The new November 2018 data breaches are added to a growing list of breaches that have already occurred for the year. Facebook was perhaps one of the most publicized data breaches for the year. In April of 2018, at least 87 million records were breached, and it’s most probable that there were far more. Orbitz also had a considerable catastrophe when travel booking accounts were hacked, leaving something like 880,000 customers’ payment cards exposed.

Data Breaches in 2017

Numerous businesses in the past have had problems with data being compromised, especially in 2017. There were at least 16 data breaches for major retailers, according to Business Insider, including Macy’s and Adidas, to name a few. Sears even had a data breach in April that affected at least 100,000 customers who had their credit card information compromised. Restaurants were also hit with data breaches in 2017. Sonic and Panera Bread were two of the most noteworthy.

So far this year, the numbers of data breaches have exceeded those in 2017 by a long shot, which just shows how much of a risk data breaches are continuing to be in spite of considerable efforts to stop them. All business owners should amp up their security efforts and keep a close eye on data, so it is rightly protected.

How Managed IT Services can Improve Cyber Security

According to BusinessWire, 4.5 billion records were compromised during the first part of 2018. Every type of organization from healthcare to banking is susceptible to a security breach. Even small businesses are no longer immune from the threat of hackers or malware. Cybersecurity is a priority for nearly every organization and finding ways to reduce the risk can be both time consuming and costly. There are several ways a managed IT service can improve a company’s cybersecurity and lessen the chance of a significant breach.

Conduct Regular Assessments

An outsourced IT team can conduct an initial assessment to see where there are any weaknesses in the system. Until a professional evaluation is done, a company won’t know where their shortcomings may be. After the initial assessment, regular checks can be made to keep all computers and devices working as effectively as possible. Ongoing vulnerability scans will keep a company aware of their weak points and one step ahead of security threats.

Monitor and Secure Networks

Most businesses have a firewall to protect their networks. This is just a first step and isn’t enough to keep a company safe. To keep the networks as secure as possible ongoing monitoring is necessary. Keeping a network secure involves monitoring several specific aspects of a system.

• Malware Protection – An IT team can provide the most up-to-date software and security tools to reduce or eliminate malware.
• Endpoint Protection – This means that every access point on a network, including phones, tablets, and laptops, is kept secure.
• Real-Time Alerts – A managed IT service can give a business around the clock alerts regarding the health of their hardware and software.

Maintain Compliance

Keeping all data secure and meeting compliance standards is crucial when running a business. Staying compliant means following all government regulations as well as state and federal laws that specifically affect the company. An outside source will often have expertise regarding the many compliance issues that pertain to technology. Not staying compliant can often mean paying hefty fines. Many businesses have even faced bankruptcy when failing to abide by federal and state laws.

Provide Skilled Staff

Too many businesses rely on an IT person who is the “computer whiz” in the company. No matter how skilled this individual or group of individuals may be, they almost certainly won’t have the experience that an IT services company can bring to the table. A managed services team can provide technical expertise and high-quality support for any type of company that relies on computers and the internet to do business.

Provide Backup and Recovery Services

No matter how secure a system is, disasters do occur. Everything from power outages to computer crashes can mean lost data and potentially long periods of downtime. If a company happened to lose data due to a computer crash or a security breach, an outsourced IT team would have the expertise to recover all the lost data as quickly and efficiently as possible. Managed services can provide an offsite storage solution for all of a company’s data. Offsite cloud storage not only can improve security but is cost-effective and offers easy accessibility.

Constant Email Monitoring

The average employee receives hundreds of emails each week. A business that isn’t providing extensive scanning for all emails is putting itself at risk. A managed IT service can provide the sophisticated tools to adequately monitor emails. An experienced team of professionals can offer a company spam filtering, email encryption, and archiving.

Available 24/7

A computer system is vulnerable around the clock to hackers, viruses, and malware. To prevent a security breach a business needs a professional IT team that can monitor and protect their system without any downtime. Having 24-hour IT service also means the company can immediately contact a professional when anything suspicious occurs. Waiting for the IT person to come into work might mean the difference between solving a potential problem quickly and suffering a significant security breach.

A managed IT service can offer a company everything from malware protection and email monitoring to backup and recovery services. As breaches and data loss continue to be critical concerns for business leaders, professional IT providers can offer a company comprehensive service to improve cybersecurity.

You would never open a restaurant without investing in the proper insurance policies. Before you ever light the grill, you’d make sure that you had every bit of liability coverage you could imagine. Before hiring your first employee, you’d make sure that your policy would protect your business’s interests in the event of an injury or accident. You would never allow a customer to sit down and enjoy a meal without knowing that you were covered, should the worst happen.

Regardless of the type of industry that you are working in, the first step is always self-preservation. Before you take two steps forward with your business, you do what you need to ensure that you won’t have to take three giant steps back. Insurance and liability coverage is more than fundamental—it is the expectation. In many parts of the world, it is even mandated. But for some reason, this basic concept of protecting your business interests, as fundamental as it may be in other aspects of your corporate venture, isn’t nearly as standard when it comes to protecting digital interests.

Every company utilizes some level of digital software, whether it is for internal processing, staffing purposes, or financial purposes. While a restaurant may run based on the goods in the kitchen and the friendly service of the staff, the business itself is only able to operate when everything behind the scenes—from inventory management to payroll—is functioning correctly. A ransomware attack on any company can have drastic negative consequences. Take for example the recent experience of a prominent Canadian restaurant chain, who after suffering a ransomware attack experienced a partial network outage and had to actually close several locations until the issue was resolved.

Protecting your company from accidents that may happen day to day is important. But malware isn’t an accident—it is malicious and intentional, and it can happen to anyone. You will never realize that you are a target until it is too late, and if you aren’t careful, you could end up with the attacker gaining access to incredibly sensitive information about your finances and business plans.

It is time to make digital protection a fundamental aspect of protecting your company. A simple malware protection software can alert you if anything suspicious is downloaded onto your computer, and will act as the first line of defense in keeping dangerous software and viruses off of your hard drive and away from your personal information.

When the malware attack shut down the offices of more than half a dozen prominent restaurant chains in Canada, including Harvey’s, Swiss Chalet, and Montana’s, it led to significant disruptions in service and profit margins. Phone calls had to go unanswered, the doors had to remain locked, and employees were sent home without paychecks. This is a massive disruption and one that can be entirely prevented with minimal effort thanks to advanced ransomware protection services.

Don’t take any unnecessary risks with your corporate interests. Talk with an expert about the best malware protection services available that can help keep your restaurant’s doors open and your profit margins healthy.

How do you usually shop when you need something like a gift for a friend, a new pair of shoes, or a bike for your son or daughter? Today more than ever before, Americans make a beeline for the computer or a big box store when it comes to getting through their shopping list.

And it’s not just clothes, toys, and gifts we buy at these places. Paper towel, cell phones, greeting cards, and all your groceries can be purchased at the same time — with just one trip to a large chain store or one click of a button.

So where does this leave the little guy — small businesses?

Small businesses are closing up shop, and fewer new businesses are opening than ever before. Unfortunately for everyone, this means less support to locally-run firms, more unemployment, cheaper goods, terrible customer services, and small towns that suffer.

But you can help!

Small Business Saturday is a way to pump life into the small businesses here in the U.S. — and around the world. Here’s a bit more about this special annual event and how you can participate this year!

What Is Small Business Saturday?

Small Business Saturday is a day that celebrates small businesses of all kinds around the country. This includes all types of independent retailers from locally-owned gyms, grocery stores, cafes, and restaurants to artists and craftsmen who sell their goods online, local farmers, and more.

When Is Small Business Saturday?

Every year in the United States, Small Business Saturday is celebrated on the first Saturday after Thanksgiving. This year, 2018, Small Business Saturday will take place on Saturday, November 24^th.

How Did Small Business Saturday Start?

Especially since the 1960s, when the modern American shopping mall came into existence, big box stores and chains have taken over what was once a country dominated by small local businesses. Small and even medium-sized towns have seen their small businesses obliterated when bigger chain stores come into town. Usually, the smaller retailers can hold out for at least a year, but inevitably, it’s the big guys who win out.

Small Business Saturday started as a way to pump some life back into the small businesses around our nation — to honor and recognize them. The first celebration of this holiday was only celebrated in Massachusetts in 2010. It was created as a way to work against Black Friday, which inevitably favors large chain stores and retailers.

But since that time, the holiday has spread throughout the nation. From the start, Small Business Saturday was sponsored by both the non-profit National Trust for Historic Preservation and by American Express. There are now Small Business Saturday celebrations in the UK and elsewhere around the world as well.

Why Participate in Small Business Saturday?

If you’re a small business owner, it, of course, makes sense to raise awareness of your business and other small businesses around the nation and the world on this day!

If you’re not a business owner, it also makes sense. That’s because consumers like you profoundly impact whether or not small businesses are able to get off the ground or maintain their business. By patronizing small businesses on this day — and raising awareness for others — you’re putting your money where your mouth is and let the world know that you appreciate small businesses and want them to stick around.

How Can Small Businesses Participate in Small Business Saturday?

Small businesses should prepare for Small Business Saturday by promoting the day online and in-store. You might consider holding a special event, an open house, or the release of a new product or service on this day. For more inspiration, head here to Shop Small®’s Get Inspired page.

How Can Others Participate?

If you’re a consumer, the best way to participate in Small Business Saturday is to buy from and patronize small businesses!

This might mean shopping at your local grocery store instead of the big chain supermarket in your town. It might mean grabbing a coffee at a local café instead of a chain coffee shop. Or it could mean ordering a piece of art, a tool you need, or something else from an independent retailer online.

Don’t Forget to Spread the Word!

Lastly, whether you’re a shopper or you own or work at a small business yourself, one of the biggest things you can do to support Small Business Saturday is spread the word.

Tell your friends and family about Small Business Saturday, use the hashtag #ShopSmall on social media, and of course, don’t forget to get out there and spend your money at small businesses in your area this Saturday, November 24^th, 2018!

In today’s digitally driven world, far too many personal and business devices are left unsecured. These devices don’t leverage strong passwords and fail to have the encryption needed to protect vital data. Whether companies choose to store data in public, private, or hybrid clouds, they should always ensure that the data is encrypted before it leaves their devices or networks. Additionally, when employees think that “this data isn’t important,” they are creating the weak links that hackers need to successfully infiltrate a device (or network) and subsequently steal unencrypted data, upload malware attacks, and otherwise wreak havoc on unsuspecting businesses. Unfortunately, far too many companies fail to understand the importance of encrypting both their devices and their data.

Why Should Businesses Encrypt Devices?

The primary reason that businesses need to encrypt all devices is due to the sensitive data that they hold. Take, for example, Amarillo, Texas which said that one of the companies in charge of a security payroll audit for the city lost a flash drive containing city employees’ names, bank deposit information, birthdays, social security numbers, and addresses. Fortunately, the flash drive was encrypted. However, if the device had been unencrypted, then the story could have been significantly more disastrous, especially when you consider the fact that each of the employees’ files could quickly be sold on the dark web or black market.

Secure Device Configuration

When devices are not correctly configured, then it doesn’t matter if your company has robust security protocols. With this in mind, securing devices is made easier when your business follows these vital steps:

1. Lockdown any services, including remote management systems, that you are not using.
2. Disable and/or change the default settings on ports.
3. Prohibit the use of outdated web technologies. In this vein, Java, NPAI, and Plugins need to be kept up to date to avoid any potential security vulnerabilities.
4. Create strong passwords.
5. Leverage encryption for any and all business communications, data, and devices.

It is important to note that you must complete all of the above steps. For example, if you use a strong password, but fail to properly encrypt your device, then it could still be subject to theft or hacking attempts. Fortunately, there are three additional steps that you can take to further protect your vital business data and devices.

3 Steps To A Strong Configuration

Securing your essential business data is made easier when you complete the following three steps.

1. Strong Passwords And Encryption. — Did you now that in 2017 81 percent of hacking-related breaches were due to stolen (or weak) passwords? In this vein, you must ensure that your employees are following password best practices. For example, the default password should never be used, the password should include both uppercase and lowercase characters, one number and one special character should be used, and the password should be between 8 to 16 characters. In addition to strong device and application passwords, you should always use encryption. It is especially crucial that sensitive data sent via email or stored on the cloud is appropriately encrypted.
2. Endpoint Protection. — Endpoint protection will require you to complete plug-in and browser updates, use an up to date anti-virus software, and implement a proven use Data Execution Prevention (DEP) and use Endpoint Threat Detection and Response (ETDR) that has been customized for your business needs.
3. Restrict The Number Of Login Attempts. — When an employee has an infinite number of login attempts, then their “strong password,” is made null-and-void. Instead, you should limit the number of login attempts to business devices or networks. As an added level of protection, you should ensure that employees can only access portions of your system from approved devices. After all, if an employee is using a compromised device to access your business network or data, then you are automatically opening the barn door for hackers to come in and wreak havoc as they decide what information they want to steal and inevitably sell.

The Bottom Line: Take The Steps Needed To Encrypt Data And Devices

If you want to ensure that your business data, devices, and networks remain secure, then you need to use the proper encryption methods. In addition to data and device encryption, you should also ensure that all devices have been appropriately configured. In conclusion, through endpoint protection, a restricted number of login attempts, secure passwords, and encryption best tactics, you can keep your vital business data safe from hacking attempts.

A recent survey of Canadian chief information officers expressed disappointment in IT outsourcing. The feedback the CIOs provided present an exceptional opportunity for IT companies to respond and hone their services and customer service to better serve corporate clients.

The annual CanadianCIO Census, sponsored by IT World Canada, shows that CIOs are dissatisfied with the investments they’ve made in outsourcing. Among the findings:

• Twenty-five percent of CIOs surveyed note that the outsourcing relationships had fallen short of expectations. That’s similar to the 2017 results, where 28 percent reported the same sentiment.
• “As a service” computing is taking the place of many traditional outsourcing products.
• Data indicate that more companies are investing in in-house staff, despite continued projected growth in outsourcing services. Gartner expects the outsourced IT market to reach $363 million by 2020 with 6.3 percent annual growth.
• There is a gap in expectations versus reality when it comes to what an IT provider does.

It’s evident that the opportunity to deliver better services is high.

What Are the Gaps in Expectations Between IT Providers and Clients?

Too often, businesses that outsource believe that once the contract is signed, the provider is going to take care of everything. Executives may not understand the need to establish and maintain an ongoing dialogue and relationship with the IT provider.

This disconnect raises an important consideration for IT company leaders. It’s imperative that you’re transparent with clients about how to make the relationship work. Many IT providers position themselves as virtual CIOs and tout their ongoing advisory services. IT companies should establish their executives as thought leaders who will be available for ongoing consulting and brainstorming. Reinforce that your commitment to the client includes recommending new technologies and solutions as they emerge and analyzing performance data to support improvements that will advance business goals.

What Is Needed for Transition Planning?

When you present a plan to refine, add or replace technologies and processes, there’s a critical need to be sure that project management is clearly outlined. The client and provider need to be on the same page about what the transition to new solutions will mean, scoping out the sequencing, significant milestones, timelines and impact on operations. Transition and project planning are essential to managing expectations from leadership, employees and customers.

The project management plan also needs to focus on information sharing and knowledge transfer. IT companies can position themselves as comprehensive service providers by focusing not only on what happens on Day but what will be done to ensure the client’s organization will be ready and prepared.

When Is Customization a Problem?

Many IT providers tout their ability to customize solutions for each client, taking into account the unique needs, challenges and opportunities. This is an important marketing point and should continue to be front and center. However, customization can often cause frustration.

For example, when a new solution needs to fit the way the client does work, there needs to be a lot of dialogue about processes. Sometimes, the client has not documented those processes, the processes are inconsistently applied within the organization, or existing documentation is inaccurate. At that point, the outsourced service provider often has to build new documentation, a time-consuming process that can add additional hours and cost to a client’s bill. Clients that are not expecting that expense can become unhappy quickly.

IT providers can avoid these issues by being clear at the front end about time estimates and identifying typical unforeseen problems that might add to the final project costs.

How Can IT Providers Help Clients?

One approach to improving the experience for clients … and their satisfaction levels … is to suggest a three-pronged approach to management and governance:

1. Encourage clients to train their staffs on how to work best with your company. Offer to help develop that training and help staffs prepare for change.
2. Suggest the client’s company build a governance structure. A management committee, for example, could draft a charter defining the key metrics that determine the outsourcing efficacy and how problems will be addressed.
3. Recommend the client appoint relationship managers that have the authority to work closely with the service provider and report back regularly to company leadership.