The country's information security market is expected to grow by 18 per cent to reach Rs 1,415 crore in 2013 on the back of increased spending by companies to secure their information assets, a new report says.
"Size of the information security market in India in 2012 is Rs 1,200 crore and our estimate for 2013 is Rs 1,415 crore, a growth of 18 per cent," PWC said in 'The State of Information Security Survey -India, 2013'.
The report said said regulatory compliance is the key justification provided by executives for increasing information security spending.
The report said a survey shows 75 per cent respondents from India as compared to 45 per cent of global peers expect an increase in information security spending. Consequently with rise in spending, project deferrals are decreasing and
overall project budgets are protected.
"Nearly 60 per cent claim that information security linked operational and capital expenditures have not witnessed any deferrals in their organisations," the report said.
The report is based on an analysis of responses from 738 respondents from 17 industries across the country.
"The smartest organisations in the country are bringing together strategy, technology and market intelligence in a way that stacks them at the top of the information security league tables," PwC India Executive Director Sivarama Krishnan said.
According to the survey, medium businesses with revenues ranging from Rs 500 crore to Rs 5,000 crore, saw an estimated 17 per cent increase in security spending in 2011-12 followed by small businesses with revenues less than Rs 500 crore where
the spending increased by 14 per cent.
Large businesses with revenues of over Rs 5,000 crore and government organisations saw 11 per cent and 8 per cent increase in spending.
The report said 80 per cent of the respondents have high confidence that their organisations have instilled effective security behaviours in their culture while data reflects there is a lack of general commitment to information security on the ground.
It added that while financial services companies are striving to maintain leadership in information security practices, telecom, information communications and entertainment companies are gaining ground especially leading in information security strategies for new technologies like mobile, social media and cloud computing.
The report said security incidents have increased three-fold in the country but the financial losses due to security breaches have decreased significantly.