Industries such as finance, healthcare, and government are subject to stringent regulatory requirements regarding data privacy, cybersecurity, and IT management. These regulations frequently change, and it is vital for businesses in these sectors to ensure that their outsourced IT providers are staying compliant. An annual review helps verify that the provider is up to date with any new regulations and is implementing the necessary changes to remain compliant. Failing to do so could result in costly fines, legal action, or reputational damage.