Bhoomika Singh
India, with its burgeoning technology sector is standing on the cusp of a digital revolution that promises transformative changes across various sectors. However, the digital transformation or digital adoption has not been so smooth, as there are several challenges that are slowing it down. A recent report by Capterra, titled “State of Digitalisation in India,” highlights these challenges, particularly regarding cybersecurity, that have emerged as significant barriers to the seamless realisation of India’s digital potential.
As India races towards greater connectivity and integration of technology in everyday life, there is a pressing need for robust cybersecurity measures for safeguarding sensitive data, ensuring privacy, and maintaining the trust of citizens and businesses alike.
The Founder and Managing Director of Global Group of Companies, Gurvinder Singh says, “Digitalisation has enabled and empowered the Indian SME segment with efficiency, competence and reach! It has helped in multiple ways to help the segment remain buoyant in the face of adversity. From efficiency to accessibility to affordability, it has impacted the way in which businesses are conducted. Analytics and insights have opened newer avenues for informed business decisions. E-commerce has expanded the shelf to a global arena.”
The role of cybersecurity
However, the rapid pace of digitalisation has also brought to the fore several cybersecurity challenges. The report identifies cyber threats, data breaches, and privacy concerns as critical issues that have the potential to derail the country’s digital progress. As more individuals and organisations embrace digital platforms, the attack surface for malicious actors widens, making it essential to prioritise cybersecurity measures across the board.
“Cybersecurity is of paramount importance in the digitalisation of Indian SMEs for data-protection from theft or unauthorised access and for maintaining business continuity through resistance to cyberattacks that potentially threaten operations-disruption, leading to financial losses and reputational damage and for sustaining customer-trust,” Singh stresses.
He further adds, “It is a blessing that the legal and regulatory infrastructure makes it imperative for businesses through regulations, such as the Personal Data Protection Bill in India, to protect customer data. Further cybersecurity methods will help businesses to gain a competitive edge and save themselves from theft and the unauthorized use of their valuable intellectual property (IP), enabling them to retain the trust of their partners, clients and investors.”
Cybersecurity challenges hindering digitalisation
The Indian SME sector must deal with multiple challenges like limited resources, increased cyber-crime, lack of awareness, geographical expanses, supply-chain vulnerabilities, etc.
Highlighting the challenges that SMEs face, Singh notes, “Cybersecurity, although a boon for the sector has its own challenges for SMEs in India. Many SMEs have limited financial and human resources to invest in robust cybersecurity measures, making them attractive targets for cybercriminals.”
“SMEs are often part of larger supply chains and cyberattacks on any link in the chain can have a cascading effect on them. Some SMEs underestimate the importance of cybersecurity or lack awareness about evolving cyber threats and randomly fall prey to rising cybercrime, including ransomware attacks, phishing, and data breaches, targeting businesses of all sizes,” he adds.
According to the survey, while talking about the top three most challenging aspects of digitalisation, 40 per cent of the SMEs said that reaching customers digitally was challenging, while 36 per cent cited the difficulties in converting their existing operational processes into digital ones, with another 36 per cent stating that shifting their internal business processes to an online environment was challenging.
The report also delves into the specific cybersecurity challenges that India faces on its path to digitalisation:
Data Protection and Privacy: With the extensive collection and utilization of personal data, there is an urgent need for stringent data protection regulations and mechanisms to ensure that individual’s privacy rights are upheld.
Cyber Threats: The evolving nature of cyber threats demands a proactive approach to cybersecurity. Ransomware attacks, phishing attempts, and other forms of cybercrime can disrupt essential services and erode public trust.
Lack of Cyber Literacy: The digital divide extends to cyber literacy as well. Many individuals, especially in rural areas, lack awareness about the best practices for online security, making them vulnerable targets for cyberattacks.
Inadequate Infrastructure: The digital infrastructure, including networks and software systems, must be fortified against cyber intrusions. Weaknesses in these areas can be exploited by cybercriminals to gain unauthorised access.
While there are some companies that are still not in a place wherein, they have or intend to implement digital processes.
According to the report, 37 per cent of company owners said that they have a limited budget for implementation, 34 per cent raised concerns about overwhelming their employees with technology, and 29 per cent had a lack of awareness regarding software that would improve their current processes. Another 29 per cent said that they had already digitalised everything that they could, however, 24 per cent said that their businesses were running smoothly the way they were.
Unlocking transformational opportunities
While the cybersecurity challenges are indeed significant, they are not insurmountable. Singh recommends, “SMEs in India need to adapt to changing work environments and regulations and fight back cybercrime to stay robust amid the changing market dynamics. While the challenges persist, the sector’s resilience and adaptability position it for continued growth in the Indian economy. Perhaps an essential requisite towards the ‘Atmanirbhar Bharat’ vision!”
The report underscores that addressing these challenges can unlock a multitude of transformational opportunities for India:
Digital Trust: Establishing a secure digital environment will foster trust among citizens, businesses, and investors, paving the way for greater digital engagement.
Innovation Ecosystem: A robust cybersecurity framework can encourage innovation by assuring entrepreneurs that their intellectual properties and digital assets are well-protected.
Global Competitiveness: A secure digital landscape enhances India’s standing on the global stage, attracting foreign investments and collaborations in technology and innovation.
Citizen Empowerment: A secure digital infrastructure empowers citizens to fully participate in the digital economy, thus promoting financial inclusion and socio-economic growth.
Funding, a way forward
For start-ups or other small businesses that have just started or are in the nascent stages of development, one of the things around which a lot of decisions could revolve is funding. Without funding, it may become difficult to put their digitalisation plans into action. To understand the status of funding, a survey was done amongst founders who were asked if their company had received any government funding to support their digitalisation processes and as per the data, 65 per cent of the respondents reported receiving funding from the government at least once.
According to the survey, 40 per cent of the owners received government funding for digitalisation once, while 25 per cent received government funding for digitalisation multiple times. However, 20 per cent did not receive government funding because they did not apply for it, and 8 per cent were not aware of any available government funding but would have been interested in applying. A further 6 per cent did not receive government funding despite applying for it.
Interestingly, according to the report, while 49 per cent of the founders felt that the process of digitalisation would have been possible without government funding, 52 per cent felt that digitalisation would be challenging or even impossible without government funding.
8 in 10 company owners think that there should be more funding initiatives for digitalisation. The report further says that 80 per cent of SME owners feel that there is a need for more funding for digitalisation, while 13 per cent of them believe that there are already enough funds and initiatives available. However, six per cent of the owners think that companies should rely less on funding and try to find alternatives.
The report concludes with some recommendations that can guide India towards a secure and prosperous digital future:
Comprehensive Cybersecurity Policies: India needs comprehensive and adaptive cybersecurity policies that account for emerging threats and technological advancements.
Public-Private Collaboration: Government and private sector collaboration is crucial to address cybersecurity challenges collectively. This partnership can foster information sharing, skill development, and the pooling of resources.
Cyber Education and Awareness: Promoting cyber literacy among citizens is essential. Educational initiatives can empower individuals to protect themselves online and recognize potential threats.
Investment in Technology: Developing and adopting advanced cybersecurity technologies, such as AI-driven threat detection and blockchain-based data security, will significantly bolster the country’s cyber defences.
All in all, the report underscores the incredible strides that the nation has made in its digital journey while highlighting the need to address cybersecurity challenges for sustained progress.
As India continues to digitise its economy and society, a concerted effort towards fortifying its digital infrastructure is required. By prioritising cybersecurity, India can create an ecosystem that not only harnesses the power of technology but also ensures the safety and prosperity of its citizens in the digital arena.
