Outsourced Security Services Expected to Remain Common
With nearly every organization implementing or expecting to implement cloud computing and mobile solutions, managing the new risks these technologies present can be a timely and expensive process. In response to these growing threats, many decision-makers have opted to outsource IT services to specialized companies.
“If you have in-house resources and you wish them to pay closer attention to the more advanced security technologies, then outsourcing the more commoditized technologies to managed service providers has become a popular option,” Lawrence Pingree, security analyst at Gartner, recently told CRN.
According to Pingree, Gartner projected that the managed security services market will achieve a 16.8 percent compound annual growth rate (CAGR) from 2011 to 2016, increasing from $10.9 billion to $17.7 billion during that time frame. By comparison, Pingree said the overall security sector will experience 8.9 percent annual growth, including just a 6.9 percent CAGR after managed security services are excluded.
Meanwhile, a separate study by Frost & Sullivan resulted in more positive projections for the managed security services market. According to the report, the sector will grow from $66.3 billion in 2012 to nearly $140 billion by 2021.
“In current times, many organizations remain highly cost-conscious, motivating them to outsource their security requirements and reduce operating costs,” said Anthony Leather, Frost & Sullivan’s aerospace, defense and security research analyst.
With cybersecurity threats growing in number and sophistication, many companies are outsourcing security services to specialists, which can provide enhanced security at reasonable prices. Pingree told CRN that small and medium-sized businesses favor managed security IT service companies because they typically don’t have large in-house security teams. These strategies are especially effective, Pingree said, because they can help companies meet compliance requirements.