Concerned About Carillion? Why Your Small Business is Safe | Smeester & Associates

Concerned About Carillion? Why Your Small Business is Safe

In January 2018, U.K.’s second-largest outsourcing construction company, Carillion, collapsed, leaving many people confused and others significantly out of money. When a company this large has to completely go into liquidation, projects simply cease to continue, and a lot of questions have since been raised. While the media has been discussing the issue of private contracts being combined with public services, companies who outsource services are also concerned, but for different reasons. This is making the general public a little uneasy when it comes to the idea of outsourcing overall.

However, there are lessons to be learned from a company like Carillion. And, especially if you’re a small business, you really don’t need to worry. Just check on these:

Communication is Key

In any business, bad communication can lead to even worse problems. In order to make sure things don’t go wrong, having open communication is imperative. Unfortunately, with Carillion, communication may not have always been as clear as it could have been, and when things started to going downhill, a rescue plan was too late to execute. Of course, this can be inevitable when you’re running such a big operation.

Luckily, as a small business leader, communication between you, your CIO, and your IT team is not only easy, but it’s kind of the whole point of outsourcing to begin with. An unbiased CIO allows there to be a smooth conversation among all parties, ensuring that no one is left out of the loop, and instructions are given to the right people. It also helps to make sure businesses stay compliant, as they should be advised their own role in compliance along with the CIO and IT.

Always Pay Attentions to Contracts and SLAs

If your biggest worry about hiring an outsourced CIO is the legitimacy of the contracts and service level agreements, that’s a valid concern. A contract that’s not treated seriously or that doesn’t clearly outline what it will encompass, can potentially cause a lot of damage. Additionally, contracts should also be flexible; as a client, it’s nice to have the freedom to go back in and make changes as needed — changes that won’t put anyone at a disadvantage. Carillion didn’t really have this option, as they mainly worked with long-term contracts.

An SLA is the single most important thing you can consider before moving forward with outsourcing your CIO. But, as a small business with very specific needs, it’s likely you’ll be in good hands no matter what.

How Busy is Your CIO?

In the case of Carillion, they were managing way too many contracts at once — many of which didn’t pan out. When you’re taking on contracts to build everything from schools to roads to hospitals for the government, it can get a bit too overwhelming to keep everything in order. Any outsourced CIO may be able to relate to this to some degree. After all, a CIO who wants to provide the best support for their clients needs to be available on a regular basis, and know what to do and how to do it.

It goes without saying that if the CIO you’re looking to hire seems too busy with other clients, then a similar situation to Carillion — though, on a smaller scale — may happen. Would it affect you? Not necessarily. But, it’s still important to work with someone who isn’t stretching him or herself too thin.

Outsourcing Your CIO is Still a Great Idea

Though the Carillion situation might be a bit scary when it comes to the thought of outsourcing, unfortunately, they had factors going against them that won’t be the case for small businesses. One of the reasons Carillion had a downfall was because, at the end of the day, they took on more than they could handle. This was one of the rare times where we see the potential negative side of outsourcing. That being said, even though potential customers may have some reservations, the benefits certainly outweigh those concerns by a long shot.

For businesses who don’t have the time to handle their technology needs, outsourcing to an expert CIO can make a world of difference. They do what they need to do to make sure your network runs smoothly, letting you take care of business. Of course, a good CIO will work with your IT team while still keeping you in the loop. Overall, outsourcing your CIO saves you time, money, and the stress.

Still worried? Hopefully, this made you feel a bit better about your outsourcing plan.

In the meantime, try our RiskAware™ Cyber Security Scan & Report to see where your security currently stands.