Alvarez & Marsal Study Highlights Shift Toward Outsourcing and Vendor Consolidation in Cybersecurity
A survey of 360 technology leaders shows 69% of organizations are outsourcing security operations as firms prioritize cloud protection and cost-cutting measures.
Alvarez & Marsal’s 2025 Cybersecurity Market Study indicates a significant shift in how organizations manage digital threats, with a clear trend toward outsourcing and streamlined vendor ecosystems. Data from 360 technology and cybersecurity leaders reveals that 69% of firms now outsource their security operations, up from 61% the previous year, as they seek specialized expertise and scalable frameworks.
Cloud security has emerged as a primary investment driver, with 99% of respondents maintaining or increasing their budget allocations for this segment. This shift is accompanied by a drive for efficiency; 57% of organizations are planning to consolidate their security vendors over the next two years. The study identifies price as an increasingly critical purchasing criterion, having grown fivefold in importance compared to the prior year.
Adoption of artificial intelligence remains selective, with 48% of participants utilizing AI tools in their cybersecurity stack. While there is demand for AI-driven anomaly detection, firms remain cautious regarding integration and reliability. The findings suggest that cybersecurity providers face a more competitive environment where success is increasingly tied to demonstrating clear cost benefits and targeted, reliable AI functionality.