.png)
Amidst global economic and geopolitical uncertainty, markets are jittery, companies are spending frugally, and investors remain cautious, according to IANS Research and Artico Search. Security budgets are also affected by these realities with most budgets remaining flat or increasing modestly.
“As organizations confront an evolving threat landscape, the slight uptick in cybersecurity budgets this year reflects a careful balancing act,” said Nick Kakolowski, Sr. Research Director at IANS. “While we see modest increases, it’s clear that CISOs are prioritizing strategic investments over broad expansions. The focus is on strengthening defenses against sophisticated threats like AI-driven attacks, even as CISOs navigate tighter fiscal environments. Our research highlights the approach security leaders are taking, ensuring that every dollar spent is justified by the most pressing risks.”
Security budgets normalize after period of growth
The period of double-digit growth in security budgets seen in 2021 and 2022 has not returned. During those years, many organizations were still in catch-up mode regarding their cybersecurity programs. Today, at a growing number of organizations, the function is better understood due to increased collaboration among CISOs, the leadership team and the board of directors.
Nearly two-thirds of CISOs report increasing budgets. The average growth has risen from 6% in 2023 to 8% this year, but this is only about half of growth rates in 2021 (16%) and 2022 (17%). A quarter of CISOs experienced flat budgets, while 12% faced declines.
Over the past five years, the security budget as a percentage of IT spending has steadily increased, rising from 8.6% in 2020 to 13.2% in 2024. Similarly, as a percentage of revenue, security budgets have grown from 0.50% to 0.69% during the same period. These trends validate the increasing prioritization of security within organizations, as larger portions of resources are allocated to safeguarding against evolving threats.
External risks drive high growth scenarios
The research highlights that significant budget increases are often reactive, driven by external factors such as incidents, breaches, or the rising risks such as those associated with AI adoption. Additionally, internal dynamics like rapid company expansion or strategic shifts, including mergers and acquisitions, were cited by CISOs as key contributors to justify accelerated budget growth.
Multiyear budget growth trends vary by industry. In the financial services, tech, retail and hospitality, and legal sectors, average security budget growth has improved from 2023 but remains in the mid-to-high single digits. In contrast, the healthcare, business services, and consumer goods and services sectors have seen further declines in average growth rates compared to 2023.
Despite the budget increases, hiring trends tell a different story. Staff growth has slowed significantly, decreasing from 31% in 2022 to 16% in 2023 and further falling to 12% this year. Over a third of CISOs reported maintaining a consistent headcount, reflecting a more measured approach to expanding security teams.
“For the last 12 months, it has been difficult for CISOs to add staff even when there’s a need in the organization,” said Steve Martano, IANS Faculty and Executive Cyber Recruiter at Artico Search. “Teams are being asked to do more with less and CISOs are finding it difficult to get budget for recruiting and hiring. This puts a lot of pressure not only on CISOs, but also on their teams.”
Researchers gathered responses from 755 CISOs, whose insights on security budget and staffing trends form the basis of this report.
from Help Net Security https://ift.tt/uS9Gvd7
0 comments:
Post a Comment