Cyber Security’s Impact on the Procurement Process
IT security challenges have significantly influenced procurement processes and overall costs. As organizations have become more aware of the importance of cybersecurity, the costs associated with ensuring secure procurement processes have increased. The need for comprehensive security assessments and the implementation of robust cybersecurity measures has led to higher expenses in the procurement cycle.
For example, organizations may now require external audit reports from Software as a Service (SaaS) providers to certify their internal controls, or they may subscribe to services that conduct security reviews, adding to the overall cost. Additionally, the average global cost of a data breach has risen to $4.45 million, which is a 15% increase from the previous three years. This has prompted companies to invest more in security technologies and personnel training to prevent such costly incidents.
Moreover, during times of inflation, procurement processes risk running into budget issues if not managed carefully. Inefficient contract management can lead to companies being locked into pricing changes that they cannot afford, further exacerbating the financial impact. Overall, the heightened focus on cybersecurity has led to an increase in procurement costs, as organizations strive to protect themselves against the financial and reputational damage of security breaches.
For reference, Gray Wolf data shows the top cybersecurity vendors in 2024 include:
- Palo Alto Networks: Known for a broad portfolio of security products including next-generation firewalls and endpoint detection and response.
- Fortinet: Recognized for network security perimeter protection.
- Cisco: Offers integrated network security solutions.
- CrowdStrike: Specializes in endpoint security and services.
- Zscaler: Focuses on cloud security.
- IBM: Noted for advanced encryption technologies.
- Trend Micro: Recommended for small businesses.
- Okta: Best for access management.
- OneTrust: Known for privacy and compliance solutions.
- Rapid7: Provides integrated vulnerability and threat management.
These companies are recognized for their innovation, revenue and growth, user reviews, product features and benefits, analyst reports, independent security tests, and use cases.
One way that companies can help to combat the rising security costs is with Market Intelligence. It helps to understand what the market is paying for similar products and services. Vendors will do everything they can to find your "pressure points" and try to extract as much revenue as possible. Market intelligence can help you turn-the-tables to figure out what drives vendor behaviors and how to get to a fair and advantageous agreement.
That's where Gray Wolf comes in. We have years of market data for comparative analysis, and we focus on the Art as well as the Science of the procurement process. Let us help you navigate the pitfalls in your IT Spend.