Research Study: Companies Losing $60m Yearly to Cybersecurity Breaches and Attacks
News Release -- August 22, 2018
New report released at DXC Technology’s Security Operations Centre in Australia –
a central hub for managed security services
Sydney, Australia, 22 August 2018 - Australian and New Zealand companies are losing an average of AUD$60 million every year in cybersecurity breaches and attacks, according to a new report released by Telsyte and DXC Technology (NYSE: DXC), the world’s leading independent, end-to-end IT services company.
The report, “Security in the Age of Digital Disruption: An Australia and New Zealand Perspective,” suggests that while organisations are investing in a wave of digital transformation to modernise legacy systems and build new platforms, the inability to manage cybersecurity risks still leaves them susceptible to significant financial and reputation damage.
The report found that more than one in five organisations have experienced at least one breach per month, while the majority of organisations cannot manage cybersecurity threats on their own because of either cost concerns or talent shortage.
The new report was released at DXC’s Security Operations Centre in Sydney, which will become a central security hub after the company merged its existing centres into a single source for managed security services in Australia.
Summary of research findings
The report “Security in the Age of Digital Disruption: An Australia and New Zealand Perspective” includes a series of key findings:
- Only six percent of an organisation’s digital budget (on average) is invested in cybersecurity.
- Nearly one-third of organisations across Australia and New Zealand have had their digital strategies impacted by cybersecurity factors.
- Nearly nine in 10 Australian organisations (89 percent) and three in four New Zealand organisations (74 percent) believe there are cybersecurity gaps in their technologies
- Despite heavy investments in emerging technologies such as cloud-based services and artificial intelligence, companies are still lagging when it comes to cybersecurity spending.
- Some 28 percent of cyberattacks occur after work hours in Australia, indicating their global nature.
- Two out of three organisations are either outsourcing or intending to outsource cybersecurity capabilities.
“The high rate of breaches across various emerging technologies indicates a need for a more proactive approach to cybersecurity, as opposed to a reactive one,” said Seelan Nayagam, managing director, DXC Technology Australia and New Zealand. “IT and business leaders in the region must align cybersecurity strategy and spending with emerging technology investments, to ensure digital transformation programmes are executed with confidence. With a solid investment strategy, cybersecurity will become an enabler of new business innovation.”
Nayagam added, “While Australia and New Zealand has a higher adoption rate of cloud usage compared to other regions, we are also observing more security breaches in this area, which companies are not prepared to manage. It’s no longer a matter of whether you will be hacked, but when – and how you detect and manage the risks that come with these threats.
“That is why companies of all sizes are facing major decisions about how to cost-effectively manage security operations, and seeking an integrated, organisation-wide approach to protect systems, endpoints, users, processes, applications and data.”
More than 60 companies in Australia and New Zealand are already supported by the DXC Security Operations Centre, which is part of DXC’s global network of centres across five continents. Being part of the global network enables the DXC Security Operations Centre in ANZ to gather global intelligence and help detect and respond to threats more quickly.
The security hub will host a series of dedicated high-security teams and labs, and will provide physical access to a range of technical resources in the event of high-severity incidents. The purpose-built location will operate 24 hours a day, seven days a week, and has the physical security required for handling the controls needed for specific clearances and data protection.
Download a full copy of the “Security in the Age of Digital Disruption” report here.
Methodology
Telsyte used an online survey of IT decision makers across Australian and New Zealand organisations with more than 50 employees. Sampling was conducted to reflect the largest organisations in ANZ, with 77 per cent of respondents coming from organisations with more than 200 employees. Respondents were required to have a strong understanding of their organisation’s IT cybersecurity policies and processes, and were not limited to just the CIO or IT department. The survey had a confidence interval of +/-6.23 at a confidence level of 95 per cent. Interviews were conducted via an online survey and completed by respondents on computers, tablets and smartphones. The sample took approximately 25 minutes to complete.
About Telsyte
Telsyte is Australia’s leading emerging technology analyst firm. Telsyte analysts deliver market research, insights and advisory into enterprise and consumer technologies. Telsyte is an independent business unit of DXC Technology. Visit www.telsyte.com.au for more information.
About DXC Technology
DXC Technology is the world’s leading independent, end-to-end IT services company, serving nearly 6,000 private and public-sector clients from a diverse array of industries across 70 countries. The company’s technology independence, global talent and extensive partner network deliver transformative digital offerings and solutions that help clients harness the power of innovation to thrive on change. DXC Technology is recognised among the best corporate citizens globally. For more information, visit www.dxc.technology.
Contacts
- Sheila Dhillon, Director, Corporate Communications, DXC Technology - sdhillon@dxc.com
- Foad Fadaghi, Managing Director, Telsyte - ffadaghi@telsyte.com.au