With opportunities opening up in the cyber security space, young entrepreneurs have set their eyes on developing niche information technology security and data protection products. That the number of start-ups in the cyber security products space has gone up to over 225 in 2020 from 175 two years ago shows the increased interest among the new breed of entrepreneurs in this sunrise sector.
Bengaluru tops the list with 49 such start-ups, followed by Maharashtra with 38, Delhi with 26, Hyderabad with 14 and Chennai with 7 start-ups.
“It is heartening to note that 63 per cent of them have integrated artificial intelligence and machine learning capabilities in their products and 78 per cent of them are cloud-ready,” Rama Vedashree, Chief Executive Officer of DSCI (Data Security Council of India), said.
A spurt in the number of start-ups in this space also means increase in the skilled human resources working in the entities. “The talent pool in security start-ups has grown at a CAGR (compounded annual growth rate) of 25 per cent to 18,000 in 2020 from 11,500 in 2018,” she said.
Citing publicly available job listings, the DSCI CEO said there is an immediate need for 11,000 people in various product start-ups and companies.
“There are start-ups in niche domains such as Blockchain reinventing traditional cyber security offerings,” she said.
Growing global interest
Interestingly, some of the start-ups have started opening offices abroad, indicating the growing interest among global clients in Indian cyber security products.
“As many as 61 per cent of the start-ups are pure-play cyber security start-ups, while 28 per cent of them do both products and services. Another 11 per cent of the start-ups also do product development along with other technology products and services,” Anand Raman, a Research Analyst with DSCI, said.
The average experience of the founders is 18 years and they come from renowned global cyber security companies such as Cisco, FireEye, Juniper Networks, Lockheed Martin and Symantec.
The laterals (people with experience) are in good demand. About 50 per cent of all the 18,000 staff employed by the security products companies are laterals. About 36 per cent of them are campus recruitees.