Cost-cutting and restructuring seem to be the norm given the current financial crisis but despite this, organisations are making investments to strengthen IT security. This is according to a global survey sponsored by IT management software company CA. Forty-two per cent of organisations expect an increase in budgets for IT security, while 50 per cent project that budgets will stay flat. Only eight per cent anticipate a cut in their IT security budgets.
IT security budgets are being driven upwards by the prospect of new regulations and a perception that restructurings will increase internal threats, according to the survey.
Already companies spend a significant amount of their IT security budget on compliance. On average, companies in the Asia Pacific spend 37 per cent of their IT security budget on compliance initiatives while companies in North America spend 26 per cent.
Almost 80 per cent of companies surveyed globally believe that new regulations and mandates will increase IT spending and efforts.
"The need for companies to have the security systems, processes and reporting structures in place to help them verify compliance has always been one of the strongest drivers for security software such as identity and access management, security information management and data loss prevention," said Lina Liberti, vice president of marketing, CA security management.
Impact of layoffs
The economy also has forced many companies to restructure their organisations, which has often resulted in layoffs. Sixty-seven per cent of mid-market companies and 73 per cent of enterprise organisations believe that layoffs have increased the internal threat to IT systems.
Whether a security incident is caused by an internal or external threat, the impact on an organisation in dollars and cents is significant, and it has an effect on security spending.
The CA study surveyed more than 400 IT directors or above from large and mid-sized enterprises representing companies headquartered in North America, Europe, Asia Pacific and South America.
Join the CIO New Zealand group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.