10, December 2023

Managing the Cyber Security Practices of IT Providers

Managing the Cyber Security Practices of IT Providers

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.


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