Businesses are at risk from a lack of safeguards against the potential collapse or withdrawal of their third-party technology suppliers, according to a new study.
Information provider NCC Group found that as firms recognise the importance of new technology, most turn to third-party suppliers to modernise their businesses.
The vast majority, however, have no protections in place should those third parties no longer be able to provide their technology, potentially costing firms considerable amounts of money, or even their business.
NCC found that most firms have introduced disaster recovery plans in the event of a major catastrophe but have neglected these other forms of preparedness.
Of telecoms firms, for example, only 13% had made arrangements to protect their third-party arrangements, but 83% had disaster recovery schemes in place.
The figures fall to 11% and 74% for firms in the business services industry.
One defence businesses can use against such risks is an escrow service, NCC advised.
With an escrow service, business-critical assets provided by third-party suppliers are held in a special account by a trusted third party, offering a safer, cost-effective protection.
"Almost all businesses now use some form of third-party supplied software, exposing them to the associated risks," Leigh said.
"By agreeing that such assets are held in escrow, if a key supplier's business fails or it doesn't meet its contractual obligations, the assets can be released - quickly and safely - thereby minimising disruption to business," he added.
