Managed security services spending is primed for long-term growth in Australia and New Zealand over the next five years.
Across the A/NZ region, security services revenue is expected to grow at a five-year compound annual growth rate (CAGR) of 12.3 per cent.
This translates to a revenue forecast of A$5.5 billion in Australia and NZ$821 million in New Zealand by 2024, according to research from IDC.
COVID-19 has been the cause for this growth, the research firm claimed, as the pandemic has "significantly" changed security priorities.
Emily Lynch, A/NZ associate market analyst for IT services at IDC, added that the surge was associated with organisations tackling the risks associated with remote working and education.
In fact, Lynch claimed managed security services are anticipated to have the strongest growth across security-related services.
Furthermore, the research noted that as the style of work and learning focuses on operating remotely, it’s not only the employees and students that have to adapt but the security around them as well.
To back this up, IDC highlighted the recent distributed denial-of-service (DDoS) attacks hitting the NZX as one reason why it's important for businesses needing to adapt their security to vulnerabilities exposed by the constantly changing circumstances.
This message is getting through to businesses, with IDC’s Asia/Pacific Enterprise IT and Business Services Sourcing Survey finding 81 per cent of New Zealand and 73 per cent of Australian organisations are looking to make more investments into manage security service providers.
"The pandemic has caused a massive shake-up in external services needs, and customers must now evaluate whether their current services provider ticks the new boxes created by COVID-19,” Lynch added.
“Although not all customers are facing cutbacks, for many organisations, gestures of additional support and goodwill will go a long way to bolstering trust through the partnership and ensuring repeat business when the time comes for contract renewal."