14 October 2004

Operational Risk driving new spending...

The latest surveys from PwC ASIA paints a rosey picture for a rise in Information Security spending.

About 67 per cent of information technology executives in Asia say they will increase spending on security, compared with a global average of 64 per cent in PwC's survey of 8,000 companies conducted this year.

There are four key areas driving this and 1SecureAudit has already figured this out:





Gartner and IDC also have some interesting predictions for growth in these areas.

Worldwide technology spending, including on telecommunications, will grow by 5.4 per cent to US$2.38 trillion (HK$18.56 trillion) this year, according to research firm Gartner.

However, global spending on business continuity and IT security solutions, at US$70 billion last year, is growing much faster, and will reach US$118 billion by 2007, according to International Data Corporation figures.

Operational risks are at the heart of all of this growth, especially in ASIA where Basel II is taking hold.

``Governance and compliance issues are driving the need for information security,'' partner Rick Heathcote said. ``In Hong Kong, we have observed that in order to comply with new laws and regulations such as Basel 2 [an international standard for capital requirements], personal data privacy laws and anti-money laundering obligations, companies are recognising the need for enhanced security and internal control.''

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