Enterprises take cautious approach to security spending

Nearly two-thirds of CISOs report increasing budgets this year, with average growth rising from six percent in 2023 to eight percent this year, but this is only about half of growth rates in 2021 (16 percent) and 2022 (17 percent).

A study from IANS Research and Artico Search shows that a quarter of CISOs are experiencing flat budgets while 12 percent face declines.

"As organizations confront an evolving threat landscape, the slight uptick in cybersecurity budgets this year reflects a careful balancing act," says Nick Kakolowski, senior research director at IANS. "While we see modest increases, it's clear that CISOs are prioritizing strategic investments over broad expansions. The focus is on strengthening defenses against sophisticated threats like AI-driven attacks, even as CISOs navigate tighter fiscal environments. Our research highlights the careful approach security leaders are taking, ensuring that every dollar spent is justified by the most pressing risks."

Over the past five years, security budgets as a percentage of IT spending have steadily increased, rising from 8.6 percent in 2020 to 13.2 percent in 2024. Similarly, as a percentage of revenue, security budgets have grown from 0.50 percent to 0.69 percent during the same period.

Growth in staff numbers though has been going the other way, significantly decreasing from 31 percent in 2022 to 16 percent in 2023 and further falling to 12 percent this year. Over a third of CISOs report maintaining consistent headcount, reflecting a more measured approach to expanding security teams.

"For the last 12 months, it has been difficult for CISOs to add staff even when there's a need in the organization," says Steve Martano, IANS faculty and executive cyber recruiter at Artico Search. "Teams are being asked to do more with less and CISOs are finding it difficult to get budget for recruiting and hiring. This puts a lot of pressure not only on CISOs, but also on their teams."

The full report is available on the IANS site.

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