Security News > 2022 > July > Cybersecurity is driving digital transformation in alternative investment institutions
As the alternative investment industry tackles a rapidly changing threat landscape, increased regulation, and a continuous need to innovate, most firms are increasing their DX and security budgets and cite security as critically important to their DX initiatives, according to IDC. Senior leaders from 400 global alternative investment institutions in U.S., Canada, France, U.K., and Germany were surveyed to understand the current state of digital transformation and cybersecurity, identify key barriers and benefits of an aligned strategy, and explore the growing role of consulting services as strategic partners.
Investment in cybersecurity and digital transformation is growing, but execution in-house is decreasing with outsourcing trends increasing.
Cybersecurity is a driving force for digital transformation.
"What these findings show is that the alternative investment market recognizes the value of coupling digital transformation and cybersecurity strategies, and firms are prepared to invest in such efforts, but struggle with execution due to obstacles outside of their control like staffing shortages," said David Andrade, CEO of ECI. "This presents an enormous opportunity for third-party vendors, such as consulting firms and managed services providers, to step into more of a strategic partnership with these institutions and help enable lasting change."
80% of institutions in North America and 81% in Europe indicated that cybersecurity consulting services are critical to digital transformation efforts.
"Digital transformation initiatives with embedded cybersecurity are top of mind for most industries due to the significant impact DX can have on a company's profitability, growth and risk management," said Philip Harris, Director, Cybersecurity Risk Management Services at IDC. "With security taking a critical role, companies are turning to outsourced resources to both scale initiatives and build or maintain a strong security posture in the process."