Organizations seek partners with local capabilities, including AI risk management and regulatory readiness, ISG Provider Lens^® report says

Enterprises in Australia are shifting cybersecurity strategies toward integrated, practical approaches that address evolving business risks and support safe, responsible AI adoption, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.

The 2026 ISG Provider Lens^® Cybersecurity — Services and Solutions report for Australia finds that enterprises are placing greater importance on cybersecurity capabilities delivered within Australia as they respond to rising regulatory expectations, expanding AI risks and increasingly complex threat environments. Organizations are seeking partners that can strengthen long-term resilience across cloud environments, identity infrastructure and critical infrastructure.

"Australian enterprises increasingly expect cybersecurity partners to combine proven local delivery with practical capabilities to address evolving regulatory expectations," said Michael Gale, partner and regional leader, ISG Asia Pacific. "Organizations are placing greater value on providers that understand Australia's operating environment and can support critical business functions close to home."

Companies in Australia are adopting AI-enabled security capabilities to improve operational efficiency and strengthen security workflows. Organizations are using AI to enhance threat detection, accelerate prioritization and streamline case management while reducing pressure on security teams. They favor practical applications that strengthen day-to-day security operations rather than broad technology narratives.

Organizations are placing greater emphasis on managing the risks associated with expanding use of generative AI and agentic AI. As AI becomes embedded in business processes, enterprises are reinforcing data protection, access controls and oversight to address legal, operational and reputational risks. They increasingly expect cybersecurity partners to support responsible AI adoption alongside stronger security practices.

Regulatory requirements continue to reshape enterprise cybersecurity priorities across Australia. Organizations involved in critical infrastructure, financial services, healthcare, telecommunications and government are increasing investments in incident response, recovery planning and third-party risk management. Consolidation of overlapping technologies is simplifying security operations and increasing visibility across organizations. Enterprises expect integrated delivery models to connect strategic planning with day-to-day operations, ISG says.

"Australian companies are becoming much more disciplined in how they evaluate cybersecurity partners," said Andrew Milroy, lead author of the report. "Providers that combine practical AI expertise with strong execution and sector knowledge are best positioned to meet enterprise expectations."

The report also explores other trends in Australia's cybersecurity market, including the growing use of threat-led assessments and tabletop exercises to strengthen preparedness and increasing enterprise interest in commercial models that deliver greater flexibility and faster time to value.

For more insights into the cybersecurity challenges faced by enterprises in Australia, along with ISG’s advice for overcoming them, see the ISG Provider Lens Focal Points briefing here.

The report evaluates the capabilities of 36 providers across three quadrants: Strategic Security Services, Technical Security Services and Next-Gen SOC/MDR Services.

It names Accenture, Deloitte, DXC Technology, EY, Fujitsu, HCLTech, IBM, NTT DATA, TCS, Thales and Wipro as Leaders in all three quadrants. Infosys and PwC are named as Leaders in two quadrants each, and KPMG, Tech Mahindra and Telstra are named as Leaders in one quadrant each.

In addition, Brennan is named as a Rising Star — a company with a "promising portfolio" and "high future potential" by ISG’s definition — in two quadrants. Datacom is named as a Rising Star in one quadrant.

In the area of customer experience, EY is named the global ISG CX Star Performer for 2026 among cybersecurity service and solution providers. EY earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, which is part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

The 2026 ISG Provider Lens Cybersecurity — Services and Solutions report for Australia is available to subscribers or for one-time purchase on this webpage.

About ISG

ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data and research, in-depth knowledge and governance of provider ecosystems, and the expertise of its 1,500 professionals worldwide working together to help clients maximize the value of their technology investments.

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Press Contacts:

Laura Hupprich, ISG

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laura.hupprich@isg-one.com

Erik Arvidson, Matter Communications for ISG

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