This blog is by Ronn Pakrashi ( CEO EDCI )
In today's digitally-driven world, cybersecurity has become a paramount concern for businesses of all sizes. However, Micro, Small, and Medium Enterprises (MSMEs) in India often face unique challenges when it comes to protecting their digital assets from cyber threats. With limited resources and expertise, MSMEs are increasingly turning to outsourcing cybersecurity as a strategic solution to safeguard their operations. In this blog post, I delve into why outsourcing cybersecurity is necessary for MSMEs in India and explore the myriad benefits it offers, supported by relevant data.
Further, today, SMEs are connected to larger enterprises and could also be a conduit to a large enterprise. So, if this SMB is attacked, there's a chance of this getting exploited all the way to the bigger enterprise.
MSME Cybersecurity in India: A Pressing Need
India's MSME sector is the cornerstone of the nation's economic infrastructure. These enterprises have consistently served as a bulwark, shielding the Indian economy from global fluctuations and hardships.
Micro enterprises are the true powerhouses, accounting for a staggering 99% of the estimated 6.33 crore MSMEs. Small and Medium enterprises, while fewer in number (3.31 lakh and 0.05 lakh respectively), contribute significantly as well.
Interestingly, over half (51.25%) of MSMEs operate in rural areas, demonstrating their crucial role in fostering economic growth beyond urban centers. The remaining 48.75% are found in urban areas, showcasing a well-distributed economic landscape.
In essence, MSMEs are the lifeblood of India's economic strength, spread across both rural and urban landscapes.
Financial constraints and a lack of cybersecurity knowledge often leave MSMEs clinging to outdated security solutions, woefully unprepared for the ever-evolving cyber threat landscape. A dangerous misconception persists – "we're too small to be a target." This couldn't be further from the truth.
MSMEs are often crucial links in India's complex supply chains. Weaknesses in their cybersecurity create backdoors for attackers, jeopardizing not only themselves but also their larger partners. This is particularly worrisome considering the limited financial resources and defensive capabilities of many MSMEs.
The widening gap between digital adoption and cybersecurity preparedness is another cause for alarm. As MSMEs embrace "work from anywhere" models, new technologies introduce new vulnerabilities. A 2021 Sophos study paints a grim picture: Indian companies paid an average ransom of $1.2 million to decrypt data – a sum that could cripple many MSMEs.
The consequences of weak MSME cybersecurity are dire. It not only harms individual businesses but also exposes their larger partners to significant risks.
Benefits of outsourcing the cybersecurity needs:
Expertise and Specialisation: Managed Security Service Provider (MSSP) are dedicated cybersecurity experts with a deep understanding of the latest threats and security best practices. By outsourcing, organizations can tap into this specialized knowledge without having to build an in-house team.
Cost Efficiency: Maintaining an in-house cybersecurity team can be expensive due to the costs associated with hiring, training, and retaining skilled professionals. Outsourcing allows organizations to access high-level expertise at a fraction of the cost.
24/7 Monitoring and Response: Cyber threats can happen at any time. MSSPs offer continuous monitoring and can provide real-time responses to security incidents, enhancing the organization's overall security posture.
Advanced Technology and Tools: MSSPs typically invest in cutting-edge cybersecurity technologies and tools. By outsourcing, organizations can benefit from the use of advanced security solutions without having to make significant upfront investments.
Scalability: MSSPs typically invest in cutting-edge cybersecurity technologies and tools. By outsourcing, organizations can benefit from the use of advanced security solutions without having to make significant upfront investments.
Regulatory Compliances: Many industries are subject to strict regulations regarding data protection and privacy. MSSPs are often well-versed in these regulations and can help ensure that the organization remains compliant.
Focus on Core Competencies: Outsourcing cybersecurity allows organisations to concentrate on their core business functions without getting bogged down by the complexities of managing security measures.
Faster Response Times: MSSPs are equipped to respond quickly to emerging threats. This rapid response can be critical in minimizing the impact of security incidents.
Risk Mitigation: By partnering with an MSSP, organisations can transfer some of the risks associated with cybersecurity to a third party that is better equipped to handle them.
Continuous Improvement: MSSPs are often committed to staying ahead of the curve in terms of cybersecurity developments. They continuously update their skills and knowledge to provide the best protection for their clients.
While outsourcing cybersecurity to an MSSP can offer numerous benefits, it's important for organisations to carefully choose a reputable and trustworthy provider that aligns with their specific needs and industry requirements.
Data Supporting the Benefits
Cost Savings: According to a study by Deloitte, businesses that outsource cybersecurity functions experience an average cost reduction of 24% compared to those relying solely on in-house solutions.
Enhanced Threat Detection: The Ponemon Institute's research found that organizations with outsourced security operations detected security incidents 50% faster than those without, thereby reducing the impact of breaches.
Improved Incident Response: IBM's Cost of Data Breach Report highlights that organizations with an outsourced incident response team reported an average cost savings of $3.58 million per breach compared to those without external support.
Better Compliance Management: A survey by PricewaterhouseCoopers (PwC) revealed that 82% of organizations believe outsourcing cybersecurity has helped them achieve better compliance with regulatory requirements.
Kaspersky study: More than half of companies in the Asia-Pacific region (APAC), including India, plan to outsource cybersecurity [Source: More Than One in Two Companies in APAC Plan to Outsource Cybersecurity - India Technology News]. The study highlights a lack of internal IT security staff (24%) as a significant challenge.
Cybersecurity Workforce Shortage: The global cybersecurity workforce gap is estimated to be around 4 million [Source: Cybersecurity Workforce Shortage]. This shortage makes it difficult for MSME's to find qualified cybersecurity professionals.
Conclusion
In conclusion, outsourcing cybersecurity is not just a viable option but a strategic imperative for MSMEs in India seeking to fortify their defences against an increasingly sophisticated threat landscape. By leveraging external expertise, resources, and technologies, MSMEs can effectively mitigate cyber risks, ensure regulatory compliance, and focus on core business activities without compromising on security. As cyber threats continue to evolve, embracing outsourcing as a proactive security measure can empower MSMEs to navigate the digital landscape with confidence and resilience.
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