TMT industry reduces spend on security

Technology, Media and Telecommunications (TMT) companies have significantly reduced investment in security spending in the past year, according to a new Deloitte survey.

The business advisory firm’s annual TMT Security Survey reveals that 32 per cent of respondents have reduced their information security budgets in the past year. Sixty per cent of respondents believe they are “falling behind” or still “catching up” to their security threats.

Social networking sites such as Facebook, MySpace and Twitter, along with blogs, were cited as one of the biggest threats for companies and a significant challenge to an organisations’ internal security.

Eighty three per cent of respondents consider ‘exploitation of vulnerabilities in Web 2.0 technologies’ to be a significant threat.

Chris Robertson, TMT partner at Deloitte in Birmingham, said: “It is clear that the current business climate requires TMT companies to focus on driving unprecedented levels of cost efficiency. However, 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.

“While social networks can be powerful enablers, they also increase organisations’ internal security challenges.

“In some cases, employees unintentionally release sensitive information without realising the consequences. The number one security problem reported by security auditors is excessive access rights.

“In other cases, employees may be using social networks and the internet for illicit activities that reflect badly on the company. Either way, the company could ultimately be held responsible.”

According to the survey, 41 per cent of respondents experienced at least one internal security breach in the past year in contrast to 27 per cent of global financial institutions experiencing the same threat.

Other key findings of the report include:

• 41 per cent of respondents have established metrics to measure the effectiveness of their security investments, up from 19 per cent two years ago.
• 94 per cent of respondents allocate less than seven per cent of their total budget to IT security. A 30 per cent decline.
• Only 29 per cent of respondents believe their security spending is on plan.
• Only 53 per cent of respondents considering their organisations to be early adopters, down from 67 per cent in 2007.

ENDS

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