Indian companies are likely to spend less on IT security this year due to

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the impact of the downturn, but in 2010 their expenditure on it is expected to increase considerably, a survey by global research firm Gartner says.

According to the survey on security spending in India, about 30 per cent of firms surveyed expect their enterprises’ IT security budget to decrease in 2009. “To some extent Indian companies may compromise on their IT security this year, as due to the downturn over 30 per cent respondents said they are likely to cut down on their budget for the same and many of them have deferred their IT security projects for 2009,” Gartner analyst Matthew Cheung said.

However, the situation may be improving as one-third of respondents expect their security budget to increase in 2010 compared to 2009.“For 2010, 36 per cent respondents said they will hike their IT security budgets compared to 2009,” Cheung added.

The Indian IT security market had a size of $120 million in 2008. “For 2010, we forecast growth will be much faster than this year and would be over 20 per cent,” he added.

The study, which surveyed about 50 Indian firms across various sectors, found hardware and software were two biggest security spending areas for them.Security spendings are on five key areas —hardware, software, personnel, outsourcing and consulting services.

Moreover, most of the Indian enterprises expect a budget increase for security hardware (including appliances) in 2010.

The survey revealed that 54 per cent respondents expect their security spendings on hardware would increase 44 per cent in software and 38 per cent expect a rise in outsourcing-related security budget.

The Gartner report in its recommendation for security vendors stated that they should expect the Indian security spending to be flat in 2009.

“But they should prepare for security budget increases in 2010 as Indian IT infrastructure is immature and under penetrated and also ramp up marketing resources and production capacity for now,” Cheung said.

Security vendors should also try to influence their target customers before their budgetary period as otherwise they would miss the chance in the new budget year, the report said.

Besides, Gartner analyst said Indian companies have still got a long way to go in matching with advanced security technologies used by western world firms.

“Indian companies are still very young in terms of adopting security solutions and focus on basic and antiquated technologies, while globally firms are now using advanced technologies,” Cheung said.