Technology and Private security industry in India
The USD 9B Indian Private Security Industry, which mainly comprises manned services, cash logistics and electronic surveillance, is growing at a healthy 20%. Primary growth drivers include - increasing urbanisation, lack of police forces and high crime rates. This sector is only expected to grow as physical security becomes an important consideration in the entire security infrastructure for companies.
However, the industry is going through a paradigm shift towards embracing technology as companies continue to redefine their strategies to become more competitive. Intense competition in the industry has squeezed out most profits, forcing security companies to focus on more logistically efficient solutions, cost savings, and smarter and safer interactions among security staff.
Over dependence on manpower: The security industry has predominantly been manpower intensive. Due to lack of availability of skilled manpower, most of the agencies hire people to meet the basic demand of guarding entrances and exists. However with higher than before attrition among guards, the cost of employing a guard has gone up which eats into the margins.
Customised & Holistic: As security needs to customers become complex, clients require solutions which are highly customised. But, today’s security technology is not yet up to the challenge of meeting the needs of the enterprise. The gap between what customers want and what security technology can deliver is massive because the security industry has been focused on creating point-solutions rather than holistic answers to an enterprise’s security challenges.
Predictive rather than Reactive: Traditional security systems are designed to detect when something bad has happened, like an intrusion or when a door is forced open. Those systems don’t have the full picture or complete situational awareness and hence can’t predict events that are likely to happen. But a predictive security solution can do all this by leveraging data and technology.
Improve Margins: With increased regulations on manpower hiring and more alternative options being open to security guards, hiring as become all the more difficult and expensive. Moving towards technology and deployment of electronic security & surveillance systems will lead to improvement in margins and value added services at the client premises
Centralised Security: Driven by a desire to mitigate risk or improve business continuity, companies are beginning to look beyond the traditional siloed security operations and visualizing a fused infrastructure where physical security, safety, cybersecurity, and networking operations work together. Technology makes this possible like never before.