Study Finds That Top Performing Mid-Market Companies Invest 285% More in Cybersecurity

Research analyst IHL Group reports that investments in cybersecurity
and IT managed services result in increased business profitability.  

FORT WAYNE, Ind., April 2, 2024 /PRNewswire/ -- Corsica Technologies, a leader in Cybersecurity and IT Managed Services, has released an illuminating study that sheds light on the current landscape of technology outsourcing in midmarket companies. Conducted by IHL Group, a renowned market research firm, the study delves deep into the challenges faced by midmarket organizations and the strategic solutions they deploy to meet their technology needs.

In today's rapidly evolving technological environment, midmarket companies grapple with meeting the demands of both internal operations and external customer expectations. From cybersecurity to data integration, the complexity of technology requirements presents significant challenges.

Many organizations turn to outsourcing as a viable solution. But how do they navigate this landscape effectively? What are the critical pain points, and how can they choose the right outsourcing partner?

The study, titled The Rise of Strategic Outsourcing in Cybersecurity and IT, uncovers critical insights gleaned from a comprehensive survey of CIO and CTO respondents at midmarket companies across industries such as retail, manufacturing, healthcare, education, hospitality, finance, and others.

Among the key findings are 11 trends that provide a detailed snapshot of the state of technology outsourcing today:

1. Investment Disparity in Cybersecurity: Top-performing companies invest 285% more in cybersecurity than their below-average counterparts, highlighting the correlation between the investment in cyber security managed services and sales growth.
2. Talent Shortage in IT and Cybersecurity: Skilled IT and cyber talent are increasingly difficult to find and retain, with 42% of companies citing IT staff availability as a top pain point.
3. Profit Growth and IT Staffing Coverage: Companies that successfully address IT staffing challenges experience 125% higher profit growth, emphasizing the importance of investing in technology experts.
4. Preference for Managed Cybersecurity Services: Top-performing companies are 29% more likely to utilize Managed Security Service Providers (MSSPs) for cybersecurity, emphasizing the importance of comprehensive cybersecurity solutions.
5. Cybersecurity Investment in Cloud Systems: Cybersecurity leads among cloud spending growth categories, indicating a growing recognition of the importance of securing cloud environments and cloud managed services.
6. Legacy Software Hindrances: 74% of midsize companies identify legacy software as their top pain point, highlighting the need for modernization efforts.
7. Cybersecurity Concerns: 56% of respondents rate cybersecurity as a top pain point, reflecting the escalating threat landscape faced by midmarket companies.
8. Data Integration Challenges: Data integration issues disrupt operations for 52% of respondents, underlining the critical need for reliable integrations between systems. Across all applications and business functions, disruption can come in the form of cyberattacks, outdated software, highly specialized technology, and infrastructure issues, all of which highlight the need for a provider with diverse capabilities such as cybersecurity and EDI integration.
9. Network Speed and Reliability Concerns: 44% of respondents cite network speed and reliability as significant pain points, emphasizing the importance of secure and robust network infrastructure.
10. Focus on Data Security and Connectivity: Data security and connectivity emerge as the top technology priority for 62% of respondents, particularly among top-performing companies.
11. Outsourcing of Remote Infrastructure Management: Remote infrastructure management tops the list of outsourced IT functions, with 42% of respondents engaging third-party partners for this service.

Peter Rodenhauser, COO at Corsica Technologies, stated, "The study underscores the need for midmarket companies to evaluate their technology requirements carefully and consider outsourcing certain functions to specialized service providers. By doing so, they can address critical pain points, enhance cybersecurity posture, drive profitability, and stay competitive in today's dynamic market."

For a comprehensive understanding of the findings, the full report, The Rise of Strategic Outsourcing in Cybersecurity and IT, is available for download here.

About Corsica Technologies

Corsica Technologies specializes in delivering managed technology services, cybersecurity solutions, data integration, and AI consulting tailored for midmarket enterprises. Their primary focus is furnishing clients with robust technology frameworks and strategic guidance to safeguard and interconnect their digital resources, thus fostering efficiency and facilitating growth aligning with their business goals. For further information, visit www.corsicatech.com.

SOURCE Corsica Technologies