How To Understand The Digital Transformation
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1 Ensuring today s highly connected world is safe and secure R Chandrashekhar President, NASSCOM 8 th March, 2016, Canberra
2 Digital Space: Opportunities and Concerns Digitalization of society, businesses & government: Opportunities within Reality of security threats: breaching trust and threatening global market of technology product and services Security and privacy: impacting business, trade & international governance Cyber Security: challenge is new opportunity
3 Digitization at a Frenetic Pace: Globe and India Global 3.2 Billion 7 Billion Global internet users India 402 Million 550 million India- internet users 6.5 % 43 % Internet Penetration 75-85% Million 600 million India- Mobile Internet Users $ 204 Billion $ 555 Billion Global Public Cloud Market $ 0.8 Billion $7.4 Billion India- Public Cloud Market $ 6.4 Billion $ 21 Billion IoT- Connecting Devices $15 Billion India- IoT Industry
4 Technology Ecosystem & Implications 1 Technology Trends, Business Innovation & Key Initiatives AI, robotics, IoT, SMAC, autonomous vehicles, 3D printing, nanotechnology, context computing, FinTechs, etc. Hyper-specialization, robotic processes, business process automations Digital Government, Smart Cities, Digital Inclusion & Mobile Governance 4 th Industrial Revolution Convergence of physical, digital and biological world Built on 3 rd revolution - Electronic & IT Digitization of core business processes (plants & machineries): ICS, SCADA
5 Technology Ecosystem & Implications 2 Data driven technologies Increasing capability of data collecting, processing & sharing Interconnected world and businesses cross border data flows Volume, variety and velocity of data exponentially rising Sensors and their integration with the Internet, machine understanding of humans Real time generation, collection and processing Big Data- Analytics will be used to reinvent 80% business processes by 2020
6 Digitization: Opportunities Within $ 10 to 20 Trillion Global Economic Impact of IT by 2025 McKinsey Study $ 3.9 to 11 Trillion IoT Global Economic Impact by 2025 McKinsey Study $ 1.5 to 1.6 Trillion Market for Technology & Business Enabled Services by 2020 NASSCOM- McKinsey Study $ 350 Billion India s IT Sector by 2025 NASSCOM- McKinsey Study
7 Impediments to the Digital Transformation: Security Threats 1 Cybercrimes Ransomware, Financial frauds, identity thefts, copyright and trademark violations McAfee estimate loss of $ trillion, banking industry loss up to $ 1.3 trillion Cyber attacks Attacks on NASA, RSA, IMF, CIA, Sony, Lockheed, Pentagon, Citigroup, Indian Navy, Target Use of technology & cyberspace by terrorists in 26/11 Mumbai attacks Critical Infrastructure Attacks on e.g., T3 Delhi; Malwares such as Stuxnet, Duqu, Flame, Shamoon infections Banks, Telecom network targeted; Cyber hijacking of aircrafts and drones A NASSCOM Initiative
8 Impediments to the Digital Transformation: Security Threats 2 Cyber Espionage Economic, military and state secrets theft, annual loss of IPRs in excess of $ 1 trillion McAfee estimate Complex malware such as Flame for espionage Cyber Warfare Cyber attacks on Estonia, Georgia, South Korea and others - military use of cyberspace Non-state actors used by nation-states for specific aims, Global crime syndicates etc Nation-states getting into game in big way e.g., Ghostnet, Stuxnet Social media spawning newer crimes Used for vested interests to initiate movements against states, organize revolutions Used for spreading terrorism and inducting recruits (ISIS) Spreading of rumors to create fear in communities - London riots, Northeast exodus A NASSCOM Initiative
9 Security Attack Ecosystem: Advanced, Targeted & Persistent Focused Motivations Business Records Research results Technology Sensitive Economic Devices & Connectivity Endpoints Mobile Always-on Anywhere Sophistication & Kinetic Impact Innovative Techniques Zero Days Multi-Vector Flexi-Architecture Mullti-Geography operations Covert Operations Attribution Difficulty C& C Operations Secret Connections Commoditized Execution Easy to Access Tools Simplified Execution Service Industry Exposures & Extension Global ICT Supply Chain ESPs, Vendors & MSS Multiple Hops Actors State Non-State Faster & Cheaper Techniques Near-instance Transfer Seamless collection, collation & Transportation Quickest & easiest ways System Website Files Social Engineering Quantity of Information Collect Gather Download Transfer Persistent, insidious, & threatening More harm, Revealing important R&D information
10 Data Breaches: Stemming Privacy Concerns
11 Security and Privacy: Business, Trade & International Governance Criminal Penalties Technical & Organizational Measures Stringent Liabilities Obligations in case of Breach Localization How Should Governments Respond? Restriction on Data Transfer Strong Regulatory Infrastructure Surveillance New Legal Relationship Intervention in Business Relationships Shaping foreign policy of governments Raising questions on governing affairs of the Internet (IG) Leading to diplomatic efforts at regional & international level Influencing Bilateral & Multilaterals discussions Diversity & Localization in governance of the Domestic Affairs Leading to Jurisdictional Issues in solving Cyber Crime instances Forcing specific type of Privacy Legislative Framework 1 Inconsistent policy regime 2 Inhibition to flow of data & growth of supply-chain 3 4 Market access issues: Top line Revenue Loss Rising compliance cost & procedural delays Pragmatic Harmonized Global Market for IT Products & Services Liberal Facilitating 5 Disturbing supply-chain of ICT products
12 Indian IT and BPM Companies: Commitment to Cyber Security IT/BPO industry s experience of complying with complex requirements, serving clients of more than 70+ countries Industry s sensitivity & commitment to the cause institutional set up for security & privacy in terms of DSCI Implementation of higher level of security and privacy practices, while providing critical & value added services Industry Capacity Building through active engagement with the members on security & privacy matters Indian IT and BPM Companies Active engagement in National Cyber Security initiative in the country Engaged in Cyber Diplomacy matters involving Internet Governance, Cyber Security & Privacy Public-private partnership effort in building capability of LEAs & other stakeholders (more than 54,000 officers trained, national level program is planned) Development of cyber security skills through active engagement with the members on for domestic as well as global market
13 Cyber Security: Big Challenge, Huge Opportunity Source: Strategy& Market Sizing Model, IDC, Gartner, Technavio, Strategy& analysis Strategy& Market Sizing Model, Statista, Technavio
14 Cyber Security: India Value Proposition Destination of Global SoCs Mature Security Practice of Indian IT Services Security Services Operations set up by MNCs Destination for security research Captive security operation centres of GICs Competitive IT Product Ecosystem 50+ Indian Security Product Companies 150,000 + people working in Security Experience Trust Ecosystem Cyber Security Services IP Led Services Research Product Capabilities Trust Ecosystem India ranked as 3 rd Largest Product Ecosystem, Saw 3 Acquisitions of Indian Product Companies by Global Leaders Cyber Security Task Force [CSTF] Set up NASSCOM By 2025 Technology Skills $35 billion market for Indian Cyber Security products & services; 1 million security jobs 1000 security startups 4 Dimensional Approach Industry Policy
15 Thank You
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