Information Security

Security at the top of the agenda

Most Indian organisations expect substantial growth of business in the year ahead. This translates into new business units, locations and personnel. Many of these companies have already deployed extensive IT infrastructure to run their businesses, and intend to introduce more automation with newer applications and hardware.

Because corporates are realising that their critical information nestles in their IT infrastructure, security is making its way to the top of their agenda. It will continue to be a boardroom issue, and CIOs will drive home the need for a security mindset among employees and other stakeholders of the organisation.

Highest priority

The Infrastructure Strategies (IS) 2004 survey of CIOs reported that information security is the highest priority for Indian companies.

So it's no surprise that most CIOs have high expectations from their security infrastructure, and have charted out extensive security-focussed strategies and action plans for 2005.

Business change

The emphasis on security arises from various aspects of change in the business environment. With business models evolving and competition always rising, there is a need for greater emphasis on the information and physical security of IT infrastructure. Regulators and regulations are forcing organisations to implement information security solutions.

Over the year

Outsourcing security

Initially Indian organisations were cautious, but now they are comfortable with the idea of a third party taking care of their information security needs. On the other hand, it will be exceedingly difficult to manage the entire IT security domain in-house with limited resources. Which is why there is reason to believe that outsourcing security management will create new business opportunities this year.

Outsourcing gets into high gear

Outsourcing IT infrastructure management services is not a new trend for Indian organisations. In the past, Indian companies have outsourced requirements for maintaining LANs, ensuring WAN connectivity and managing servers. However, with the growing acceptance of the practice, they are now looking to outsource their entire IT infrastructure needs.

Cost not the only factor

Indian organisations are not looking at outsourcing as merely a cost-saving option, but also as an important driver of growth. Many organisations have plans to outsource their business continuity (BC) and DR services to third party vendors. The need to outsource is partly driven by government regulations. For instance, SEBI guidelines mandate that all Indian financial institutions should have DR measures in place to protect investor assets and ensure BC in the event of a disaster at one or more locations. Many Indian organisations that do not have the budget to replicate hardware, software and qualified manpower at a secondary site find the outsourcing option very attractive; it gives them the ability to scale- up infrastructure without making massive upfront investments.

Most of the CIOs believe that as enterprise IT infrastructure becomes increasingly complex, organisations will, without exception, require the services of external specialists to ensure smooth operations.

The case for outsourcing

While the biggest driver of outsourcing is obviously cost, there is also the need for a company to focus on its core competencies and take the help of outside specialists for non-core processes. As India is a huge country, there is demand for third parties that can manage IT infrastructure anywhere in the country.

Outsourcing innovations

With the rise in outsourcing options, service providers such as Sify have been innovating to provide new value-added services. Most vendors currently offer a range of services such as server management, managed security and storage, web hosting, application hosting, auditing services, connectivity solutions, vendor relationship management, facilities management and onsite support. However, the success of these offerings depends on the experiences of companies which have done outsourcing.

The pay-per-use model is perhaps the defining concept in outsourcing. Indian enterprises now have the option of pay-per-use, pay-per-month (or year), or pay a lease amount for a particular period and then own the equipment.

Outsourcing strategies

CIOs are also putting pressure on vendors to ensure that the outsourcing relationship provides them the benefits they expect. For this reason it is important to identify only those segments that can benefit substantially from outsourcing.

It is here to stay

Outsourcing looks set to grow as most organisations that have tried it are satisfied with the value they have received. Analysts believe that, having experimented with piecemeal outsourcing deals, more Indian organisations will start outsourcing their entire IT infrastructure. Clearly, Indian corporates are realising that IT outsourcing is not just a cost saver but also a business growth enabler.

Over the year