Indian organizations are waking up to the risks that weak security causes as business becomes digitized and IT security budgets are increasing as a result, according to research.
But organizations such as banks, which are expanding through digital services, face a skills shortage. This is increasing the use of security services, found the Gartner study.
Gartner said Indian organizations will spend $953m with security suppliers in 2014 compared to $882m in 2013, rising to $1.06bn in 2015. Security services such as consulting, implementation, support and managed services account for more than half of the spend.
“Enterprises in India that traditionally did not focus on, or invest in, a lot of security technologies are now beginning to realize the implications that a weak security and risk posture can have on their business,” said Sid Deshpande, principal research analyst at Gartner.
“Though this heightened awareness is creating increased budget allocations for security, there is still a skills deficit in the security space in India (relative to the demand), consequently driving up the market opportunity for security consulting, implementation and managed security services,” said the Gartner report.
Indian organizations are being driven to spend on IT security by highly visible security incidents in 2013 and 2014, increasing financially and politically motivated advanced targeted attacks
This is also being accelerated by regulatory focus on security and privacy and the increase in overall IT spending.
But a lack of consumer understanding of risks will hold back security spending in the consumer segment in India. “The importance of data privacy and security is not well understood by consumers in India and this situation is likely to continue to affect market growth in the consumer security space,” said Gartner.
A recent report from KPMG said the information security market in India is expected to grow by 50% in the next three years.
The market, including hardware, software and services, will be nearly Rs. 1,200 crore this year, it said. Financial services (FS) and technology information, communication and entertainment (TICE) are two sectors that are reporting a continuing focus on IT security, said KPMG.