Ireland and Israel lead cybersecurity services delivery — here is why

Our recent HFS Research Pulse 2022 survey data in Exhibit 1 highlights that cybersecurity is the number one challenge that could adversely impact an organization’s strategic goals, more than inflation, supply chain disruption, and changing customer expectations.

Organizations building or reevaluating their location strategies for cybersecurity services must take that exercise very seriously; locations aren’t created equal, and many suffer from an inconsistent investment track record and under-developed infrastructure, hampering talent growth and innovation.

CISOs or cybersecurity leaders must build a coherent location strategy into their plans and find the countries that offer them the best blend of cost savings, infrastructure, talent, cultural proximity, and innovation. And Ireland and Israel have a lot to offer, ticking many of these boxes.

Exhibit 1: Cybersecurity is the number one challenge that could adversely impact the strategic goals of an organization

Sample: 602 executives across Global 2000 enterprises
Source: HFS Research Pulse Study, 2022

Eight in ten organizations are extremely satisfied with Ireland and Israel as their cybersecurity services delivery locations

Two countries, Ireland and Israel, stand out from the pack. More than 80% of organizations in Exhibit 2 that have set up cybersecurity operations in those two delivery locations are extremely satisfied with the services they have received. Reaching such high levels of satisfaction is certainly not the result of mere chance or improvisation. The crusty Irish soda bread and yummy Israeli falafel have nothing to do with it, either. While the primary reasons for choosing Ireland and Israel are quite different, both offer exceptional conditions enabled by ecosystems with a pervasive positive effect on cybersecurity services delivery.

Exhibit 2: More than 80% of organizations with cybersecurity operations in Israel and Ireland are extremely satisfied with the services they have received

Sample: 602 executives across Global 2000 enterprises
Source: HFS Research Pulse Study, 2022

Cloud infrastructure, cultural compatibility, and physical proximity make Ireland the most attractive location for cybersecurity delivery services

Twenty percent (20%) of organizations in Exhibit 3 with cybersecurity services delivery in Ireland reported that the primary reason for choosing this location is because of the existing cloud infrastructure. On a technological level, Ireland has positioned itself as a global leader in information and communication technology, more particularly in cloud computing. Ireland has fostered a cloud ecosystem enabling vertical and horizontal chains where data can be easily exchanged but still controlled within trusted data spaces. Ireland’s cloud computing sector benefits from an existing rich cluster of data centers (according to Ireland’s Investment Development Agency, Dublin is now Europe’s largest data hosting cluster with 25% of the European market) and access to Tier 1 high-speed networks with ultra-low latency, a key factor for ensuring speed of detection and response to threats. Eighteen percent (18%) highlighted the cultural compatibility with the wider Europe regions and North America as a significant competitive advantage. Fifteen percent (15%) cited the physical proximity with partners and customers.

Exhibit 3: Cloud infrastructure, cultural compatibility, and physical proximity make Ireland the number one location for cybersecurity delivery services

Sample: 602 executives across Global 2000 enterprises
Source: HFS Research Pulse Study, 2022

Government investment, cost, and technical skills are the three main reasons for choosing Israel

For geopolitical reasons, the Israeli government has pushed hard to unite the public sector (including the military), businesses, and universities to collaborate on a wide range of cybersecurity issues, creating a true ecosystem that knows what to do when unpredicted threats come. Israel is also recognized as a cybersecurity innovation hub driving the development of technology aimed at managing the increased digital security risks organizations and countries face today. It is not surprising to see that nineteen percent (19%) of organizations in Exhibit 4 with cybersecurity services delivery in Israel reported that the primary reason for choosing this location is because of the government interest in investing in cybersecurity services industry expansion.

The country’s low-cost services and skillful talent pool are the two additional top factors attracting organizations. Regarding talent development, the Israeli National Cyber Directorate is working actively on educating and training the next generation of cybersecurity professionals to keep leading the field of cyber defense, steer the Israeli cyber industry, and leverage it in both local and international arenas.

Exhibit 4: Government investment, cost, and technical skills make Israel one of the top two locations for cybersecurity delivery services

Sample: 602 executives across Global 2000 enterprises
Source: HFS Research Pulse Study, 2022

The Bottom Line: If you are building or rethinking your location strategy and take cybersecurity very seriously, Ireland and Israel should be on your radar

Organizations must carefully pick the locations with the capabilities they need to deliver effective cybersecurity services or risk exposure to cyber-attacks that can seriously affect and even inhibit their business operations. While Ireland offers a rich technology ecosystem powered by continuous investment in cloud infrastructure, Israel has created a true partner ecosystem between public, private, and academic sectors that act as an engine for innovation. Leveraging both locations might be the winning strategy.