Slump in TMT security investment

By Jacob Nthoiwa for Deloitte

Johannesburg, 27 May 2009

Technology, media and telecommunications (TMT) industries significantly reduced spending on security in 2008, according to the third edition of the Deloitte Global TMT Security Survey.

It also shows social media tools and regulatory issues are areas of concern for many businesses.

The survey was based on in-depth research, mostly in person, with over 200 technology, media and telecommunications organisations around the world. Respondents included companies headquartered in every major region: North America, Europe, Middle East, Africa, Asia Pacific, Japan, Latin America and the Caribbean Region.

According to Reinhardt Buys, senior manager in technology law at Deloitte Legal in Johannesburg, the survey does not disclose the names of company respondents or the regions they represent, so no data specific to SA is available.

This year's results reveal 32% of respondents reduced their information security budgets, while more than half of respondents believe they are “falling behind” or still “catching up” to their security threats.

Research indicates companies are explicitly scaling back, which is having a detrimental impact on all aspects of TMT security.

“Companies that under-invest in security now may find themselves vulnerable and unable to keep pace with the growing threats from increasingly sophisticated attacks and emerging technologies,” says Buys.

With the proliferation of digitised assets, security should claim a significant portion of a company's overall IT budget, he adds.

Alternative options

The survey also indicates that declining security investment is hindering adoption of new security technologies. Companies are focusing their efforts on optimising solutions that are already in place rather than investing in cutting-edge technology that can be capitalised upon during economic recovery, says the survey.

While social networks, like Facebook and Twitter, and blogs can be powerful enablers, they also increase organisations' internal security challenges. “In today's connected world, insider threats are greater than ever,” the survey advises.

“The survey confirms that the biggest security risks are internal - negligent and disgruntled staff members,” Buys states.

Furthermore, generational differences have a major influence on perceptions of privacy, according to survey findings. Information sharing for the youngest generation of TMT workers can test the limits of traditional privacy laws. In contrast, older generations have a different perspective on privacy.

Future lessons

Companies also do not have the necessary resources in place to cope with emerging network vulnerabilities, according to the survey.

“Information and intellectual property are the lifeblood of a TMT company,” says Buys. “Protecting these precious assets, often in open and collaborative business environments, must be an imperative for organisations.

“A few important lessons can be learned from the survey results,” says Buys. “Companies that under-invest in security now may find themselves exposed when the economy recovers. In addition to increased protection of intangible assets, a main priority needs to be protecting your organisation from itself.

“Business will also be well advised to outsource specialised security needs like forensics, legal support and regulatory compliance,” he advises.