US firms see spike in cybersecurity services as data breaches increase: ISG

Recent analysis by Information Services Group (ISG), a global technology research and advisory firm, suggests that US enterprises are investing strategically in cybersecurity services as data breaches continue to rise.

The firm’s 2024 ISG Provider Lens Cybersecurity — Solutions and Services report discloses that the most affected industries are healthcare and financial services.

The federal government and some states responded with laws and proposals forcing companies to improve their defences, making the work of enterprise security teams even more complex.

Doug Saylors, Partner and co-leader of ISG Cybersecurity, commented: “New threats and powerful attack mechanisms have exposed weaknesses in critical infrastructure at US companies. CISOs of leading enterprises are re-evaluating their strategies, focusing on business resilience.”

As the US demand for cybersecurity grows, organisations are rationalising security technology stacks to reduce costs and optimise resource utilisation.

Firms are increasingly deploying AI technologies to analyse data to prioritise vulnerabilities and protect areas with the worst damage predicted.

Emerging technologies, including quantum computing and passwordless identity access management, are rapidly gaining potential. Globally, extended detection and response (XDR) and security service edge (SSE) are becoming essential enterprise platforms.

The report reveals more organisations are implementing zero-trust architectures (ZTAs) to replace traditional perimeter-based security to shrink potential attack surfaces and minimise the impacts of breaches, which requires skilled personnel and significant investments in access controls, identity management, and continuous verification.

ISG revealed large companies with complex supply chains face growing risks from attacks against third-party vendors linked to their IT systems,  leading to firms assessing vendors’ security postures and taking a stronger role in managing risk across the supply chain.

Several small and medium-sized businesses are focused on fundamental security measures such as automated patch management and user education, ISG says. These firms are also turning to managed security services and cloud-based security offerings to manage complex issues.

Jan Erik Aase, Partner and Global Leader, ISG Provider Lens Research, added, “SMBs have fewer resources and may present smaller targets to attackers, but many are instituting strong security practices with help from service providers.”

The report also explores other cybersecurity trends in the US, including the increasing adoption of cybersecurity insurance and AI-powered advanced threat detection and response.

The ISG report evaluates the capabilities of 108 providers across ten quadrants which reveals IBM as a Leader in at least six. Accenture, Deloitte and TCS as Leaders in four quadrants each, while Capgemini, Cyberproof, Cyderes, Eviden, HCLTech, Infosys, Kudelski Security, Optiv, Proficio, PwC, Rackspace Technology, Trustwave, Unisys and Wipro are named as Leaders in three quadrants each.

Broadcom, EY, KPMG, Kroll, Microsoft, Palo Alto Networks, Presidio, Thales and Verizon Business are named as Leaders in two quadrants each.

BeyondTrust, Cato Networks, Cisco, Critical Start, CrowdStrike, CyberArk, Forcepoint, Fortinet, Netskope, Okta, One Identity (OneLogin), Ping Identity, SailPoint, Saviynt, SentinelOne, Trend Micro, Versa Networks and Zscaler are named as Leaders in one quadrant each.

Additionally, EY and Persistent Systems were named Rising Stars by ISG’s definition of companies with a “promising portfolio” and “high future potential” in two quadrants each.

Capgemini, Kroll, ManageEngine, Microland, Skyhigh Security and Trellix are named Rising Stars in one quadrant each. Coming to customer experience, Zensar Technologies is named the global ISG CX Star Performer for 2024 among cybersecurity providers, as it earned the highest customer satisfaction scores in ISG’s Voice of the Customer.