Growth in IT security sector
21st January 2002 (The Sun)

KUALA LUMPUR: A recent study by International Data Corporation (IDC) reveals that the security market in Malaysia is set to experience a time of growth.

According to IDC, security must be viewed as something more than just the implementation of hardware and software and should include a set of round-the-clock security measures that have to be set in place, together with security policies which must be adhered to and practised.

IDC also identified tactical response actions during a security breach, as one of the most crucial steps towards a comprehensive and proactive approach.

The analyst group also forecasted that e-commerce is shaping up to be a major contributor to the information and communications technology (ICT) industry.

In 2002, business-to-business (B2B) is expected to continue in strong growth despite a slowdown in the Malaysian economy and slower IT spending with B2B revenue anticipated to grow by 117% in 2002, reaching US$982 million (RM3.73 billion).

This works out well for service providers such as e-Cop.net Surveillance Sdn Bhd who are well positioned to support internet security needs as Malaysian companies increasingly adopt the e-platform for commerce and communication.

According to its chief executive officer Alan See, increasing internet security violations will severely dent local and international business confidence and affect the planned migration of Malaysian businesses onto the e-platform.

"We have just scratched the surface in highlighting the potential intrusion hazards from the internet,"said See.

He said the damage inflicted will be far greater to individual organisations and the national economy if the network security initiative is not sustained.

The current downturn has caused many companies to adopt a very conservative approach in conducting their business.

The uncertainty of the economic situation and a possible recovery, coupled with the fear of a ripple effect of global events have affected ICT budgets and shelved projects.

Despite the economic uncertainty, security in Malaysia is still set to grow rapidly in line with the growth of e-business and adoption of the internet globally.

IT outsourcing is expected to gain prominence as a very viable business option due to cost effectiveness, a key consideration during the economic slowdown.

Adhering to stringent Internet security standards have helped established the company as one of the leading cyber security players in Malaysia last year.