German companies are increasingly seeking alliances to combat the growing threat of cyberattacks, as highlighted in a recent report by Information Services Group (ISG).
The report underscores the rising concern among enterprises in Germany regarding the financial and reputational risks posed by targeted cyberattacks. With an upsurge in cyber threats and a shortage of qualified cybersecurity experts, companies are turning to external providers for support.
Small and medium-sized enterprises (SMEs) in Germany, in particular, are facing challenges in handling the frequency and sophistication of cyberattacks on their own. As a result, these companies are increasingly relying on external services such as security operations centers to proactively address potential threats using AI-based approaches.
Dr. Matthias Paletta, director of technology modernization at ISG in Germany, noted that AI and quantum technology present both threats and opportunities for cybersecurity service providers. Providers that can cater to the cybersecurity needs of large companies with sizable budgets as well as SMEs with growing demand are well-positioned in the market.
While SMEs may have less mature IT security systems compared to larger enterprises, they are no less susceptible to cyber threats. As a result, there is a growing demand among SMEs in Germany for cybersecurity solutions, driving the need for providers to be sensitive to communication nuances and cultural aspects unique to this segment.
According to the ISG report, some IT managers face resistance from stakeholders, particularly CFOs, when trying to justify investments in cybersecurity. The economic challenges in Germany further compound this issue, as it is often difficult to quantify the return on investment for cybersecurity initiatives. Nevertheless, an increasing number of enterprises are recognizing the significant financial and reputational risks associated with cyberattacks, prompting greater senior management involvement in cyber risk management.
The report also highlights the role of managed security service providers (MSSPs) in leveraging automation and AI to combat cyber threats. Providers such as IBM, Axians, Deutsche Telekom, and Eviden are recognized as leaders in various cybersecurity domains, while companies like Zensar Technologies stand out for their exceptional customer satisfaction scores.
Overall, the cybersecurity landscape in Germany is evolving rapidly, with companies grappling with the need to enhance their security posture amidst a growing threat landscape. By partnering with external providers and leveraging advanced technologies, German enterprises are working towards bolstering their cybersecurity defenses to safeguard against potential cyber risks.
