Tech Companies Cutting Budgets Must Boost Cybersecurity

Cybersecurity spending is expected to increase in the next year by 10% to 15% and your business should follow suit.

While tech companies prepare for the upcoming recession with big budget cuts and brutal layoff plans, it's important to remember that cybersecurity should be the last place you're trying to save money.

The importance of cybersecurity is significant in the business world today. Unfortunately, the average business doesn't invest nearly enough in preventing breaches and securing data, which can result in lost revenue, ruined reputations, and even the shuttering of your business.

Now, with virtually the entire business world looking to cut costs, business owners should be reminded that cutting costs in your cybersecurity department could have dire effects on the longevity of your business.

Cybersecurity Should Be Recession-Proof

While cybersecurity can feel like an unnecessary cost, resulting in no direct revenue, it remains one of the most important aspects of your business to invest in.

In fact, experts predict that, despite widespread cuts across the tech industry, cybersecurity spending is expected to increase by 10-15% over the next year and a half.

“Cybersecurity is actually getting special treatment in these recessionary times because of the increased threat perception.” – Santha Subramoni, global head of the cybersecurity business unit at Tata Consultancy Services

Increased threat perception is a bit of an understatement is regard to the current state of cybersecurity.

The Importance of Cybersecurity

Sure, experts and business owners are investing in cybersecurity, but how important is it actually? Well, according to a wide range of cybersecurity statistics and studies, you are really going to want to invest in cybersecurity for your business.

Right out of the gate, a data breach can cost the average US business approximately $10 million, which alone should be enough of a reason to shore up your security. Even worse, 83% of businesses view cybersecurity as important, but only 43% consider it to be a “top three” budget priority.

Remote work isn't helping either. With employees working from home, cybersecurity is naturally a bit harder to nail down, creating security gaps that could cause serious problems.

“The digital footprint of our customers has increased exponentially. It’s not just the front production environments that are exposed to the internet. Everything is exposed to the internet because of remote working.” – Santha Subramoni

Fortunately, investing in cybersecurity doesn't have to completely ruin you. While we highly recommend investing in a full-on IT department to handle security, there are some tools that can get you started on the right foot. Password managers and VPNs are a must for businesses with hybrid work models, allowing employees to access company systems without putting them at risk.

Written by:

Conor is the Lead Writer for Tech.co. For the last six years, he’s covered everything from tech news and product reviews to digital marketing trends and business tech innovations. He's written guest posts for the likes of Forbes, Chase, WeWork, and many others, covering tech trends, business resources, and everything in between. He's also participated in events for SXSW, Tech in Motion, and General Assembly, to name a few. He also cannot pronounce the word "colloquially" correctly. You can email Conor at conor@tech.co.

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