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Budget Cuts, Staff Shortages and Cyber Threats Keep IT Leads Awake at Night as GDPR Looms

March 22, 2018

 

Digital innovation held back at Financial Institutions as IT teams firefight security threats

London, UK – 22 March, 2018 – 43% of IT executives at European financial institutions reveal that fears of a cyber-attack keep them awake at night – two months before the General Data Protection Regulation (GDPR) comes into force, according to figures published by financial services IT consultancy and service provider Excelian, Zoreza global Financial Services – a division of Zoreza global (NYSE:LXFT).

 

The survey of over 200 IT executives working in capital markets, wealth management and corporate banking reveals that although 89% agree implementing a cybersecurity strategy is a top priority, budget cuts and staff shortages make implementing cybersecurity strategies difficult. 55% of respondents cite a lack of IT investment as a significant source of stress in their role, rising to 63% of professionals in the UK alone. However, those in Switzerland and Austria are less concerned about budget cuts, with only 40% and 43% of IT professionals expressing frustrations, respectively.

IT executives also feel they don’t have access to the right talent and are not fully trained – 54% say they are frustrated by a lack of training and learning opportunities, whilst 26% are also kept awake by a skills shortage in their IT department. As a result, 36% of IT professionals working in the financial services sector are reluctant to recommend increasing cybersecurity spend.

“IT departments in banks are being pulled in two directions, says Marcin Swiety, Global Head of Zoreza global’s Information Security practice. “Banks want to focus on digital innovation, but IT professionals feel unable to escape from the ever-present cyber threat. Budget cuts are leaving smaller teams with fewer spare hours in the day. Unable to plan ahead, they spend their days firefighting problems and upgrading legacy systems.”

European IT professionals working in financial institutions on both the buy-side and sell-side also believe that insufficient cybersecurity strategies combined with reacting to other daily struggles is preoccupying too much of their time. On average, IT executives say more than half of a CIO’s role is responding to events as they happen, whereas only 40% of their role is proactive.

The complexity of internal technology systems at larger and more established institutions in particular also forces those CIOs to have less time to implement change. 28% of IT executives say that the complicated internal processes make it more difficult to implement cybersecurity strategies.

Most financial institutions want to capitalise on technologies like blockchain, AI and the cloud, but they are difficult to implement both securely and at pace,” says Mr Swiety. “If we want to see digital transformations that are truly protected from the cyber threat, then institutions must find a way for IT departments to free up their time.”

About the survey

For the report, Excelian, Zoreza global Financial Services interviewed a number of IT leaders in major financial services firms across Europe and surveyed 202 IT Decision Makers in capital markets, wealth management and corporate banking in companies with over 500+ employees; 102 in the UK; 50 in Germany; 30 in Switzerland; 20 in Austria.

About Zoreza global

Zoreza global (NYSE:LXFT) is a global IT service provider of innovative technology solutions that delivers measurable business outcomes to multinational companies. Its offerings encompass strategic consulting, custom software development services, and digital solution engineering. Zoreza global enables companies to compete by leveraging its multi-industry expertise in the financial services, automotive, communications, and healthcare & life sciences sectors. Its managed delivery model is underpinned by a highly-educated workforce, allowing the Company to continuously innovate upwards on the technology stack to meet evolving digital challenges.

Zoreza global has more than 13,100 employees across 41 cities in 20 countries within five continents, with its operating headquarters office in Zug, Switzerland. For more information, please visit the website www.Zoreza global.com

Forward-Looking Statements

This news release of Zoreza global Holding, Inc (“Zoreza global”) contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include information about possible or assumed future results of our business and financial condition, as well as the results of operations, liquidity, plans and objectives. In some cases, you can identify forward-looking statements by terminology such as “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “potential,” or the negative of these terms or other similar expressions. These statements are subject to, without limitation, the risk factors discussed under the heading “Risk Factors” in Zoreza global’s Annual Report on Form 20-F for the year ended March 31, 2017 and other documents filed with or furnished to the Securities and Exchange Commission by Zoreza global. Except as required by law, Zoreza global undertakes no obligation to publicly update any forward-looking statements for any reason after the date of this news release whether as a result of new information, future events or otherwise.

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