The information security market in India is expected to grow by 50% in the next three years, according to KPMG.
The market, including hardware, software and services, will be nearly Rs 1,200 crore this year, it said.
Financial services (FS) and technology information, communication and entertainment (TICE) are two sectors that are reporting a continuing focus on IT security.
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"Increasing business needs and financial goals are a major contributor to the growth of the information security market in India," said Akhilesh Tuteja, IT advisory head at KPMG India. Regulatory and compliance requirements are key drivers for the telecom sector's increased adoption of information security, he added.
India has been identified as a target for cyber-criminals. Symantec's latest Internet Security Threat Report says India is the world's third most vulnerable country in terms of data breach threats from malicious cyber activities.
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Sivarama Krishnan, executive director of IT risk and controls at PwC India, said: "The primary drivers of information security adoption and spending in India are the growing cyber threat to businesses and the consequent reputational and financial losses.”
Other drivers of spending on IT security were the rapid obsolescence of technology, and the growing adoption of emerging technologies such as mobility, cloud computing and social media.
New technologies such as these are causing significant movement from traditional compliance-based and perimeter-oriented security systems to safeguards such as behavioral profiling and monitoring, security information and event management technologies, and threat intelligence.
The Indian government is leading by example, embarking on a plan to create a workforce of 500,000 IT professionals skilled in cyber security in the next five years through capacity building, skills development and training. The government plans to build and operate a 24/7 National Critical Information Infrastructure Protection Centre (NCIIPC).
But a shortage of trained personnel and technology know-how have slowed the growth of the IT security market, said Tuteja, who was the brainchild of IT security practice at KPMG India. The industry needs to focus on capacity building so it will benefit in the long run, he added.
To address this, Tata Consultancy Services (TCS) and the UK government's Foreign and Commonwealth Office have jointly launched a cyber security and public policy education program.
The Chevening-TCS scholarship on cyber policy is targeted at mid-career professionals in India who have the potential to be future leaders, and will prepare them for the increasingly complex world of cyber security and policy.