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Managed Security Services will Reach $1B in LatAm

Effective IT infrastructure security is a growing concern to most organizations that have expanded their use of eCommerce applications. It's especially important to senior executives at public companies that are held responsible for security breaches and any related impact on customers.

IT security expertise demand is increasing worldwide, including managed services. As an example, the Latin American managed security services (MSS) market is transforming as CIOs focus on higher levels of security and risk management for their IT infrastructure.

According to the latest market study by Frost & Sullivan, this is due to increasing threats such as targeted Internet attacks, advanced persistent threats, more sophisticated distributed denial of service (DDoS) attacks, and of course ransomware.

IT Security Services Market Development

"Traditionally, the mindset about cyber security in Latin America has been more reactive rather than proactive, with investments occurring after attacks have taken place," said Mauricio Chede, research analyst at Frost & Sullivan.

Hackers also realize that many companies are not prepared to deal with attacks, and therefore view the region as an open environment for financial crimes, industrial espionage, and corporate data theft.

However, IT security and regulatory compliance is now becoming an important issue for many organizations across the region. As a result, Frost & Sullivan has forecast that the overall MSS revenues for Latin America will reach $1 billion by 2021.

According to the Frost & Sullivan assessment, while security asset management and monitoring will experience the most demand in Latin America, services such as threat intelligence, research, detection and remediation are gaining momentum.

CIOs and IT managers now want solutions that solve their IT security related problems, rather than merely provide an alert of a potential problem.

Demand for Managed Security Solutions

Successful managed security service providers (MSSPs) will be those that can demonstrate trustworthiness in remediation without interrupting their customer's business operations.

They will likely have deep vertical industry knowledge and win customer trust to outsource to third parties based on relevant experience and specific knowledge on compliance and business requirements. Furthermore, the most capable service providers will offer complete security solutions instead of merely generating low fidelity security alerts.

"The challenge and complexity that security brings to companies will only increase, so agile MSSPs will be the ones that interact closely with customers and offer the best solutions to keep them safe," concluded Chede.

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