Why security should be your #1 feature priority in software procurement

When investing in software, it’s essential to consider a variety of features to ensure any potential solution meets your needs. No doubt you’re considering compatibility, functionality, cost, security, vendor reputation and scalability.

And while each of these features is important in its own right, Gartner’s 2024 Global Software Buying Trends report reveals that 48% of software buyers are now considering security as the most important feature when purchasing new software.

If you are looking for new software, here are five reasons why security should be one of your top feature considerations.

1. To protect sensitive information

The software systems that businesses use handle a growing amount of personal identifiable information (PII) and financial data of the organisation and its customers. Also, proprietary business information such as innovative technologies, business correspondence and other sensitive information are often housed in such software.

Secure software keeps such information away from the reach of malicious actors. Its round-the-clock reliability prevents system failures that can allow unauthorised access and data exposure.

2. To guarantee regulatory compliance

Due to varying laws and industry standards designed to ensure privacy and protect consumer data, organisations have a legal responsibility to comply with regional and industry-specific security standards.

A few important examples of these laws include:

• The General Data Protection Regulation (GDPR)
• Health Insurance Portability and Accountability Act (HIPAA)
• Payment Card Industry Data Security Standard (PCI DSS)
• California Consumer Privacy Act (CCPA)
• Australian Privacy Principles (APP)

While each law and compliance has its own specific requirements, they all mandate that organisations implement appropriate security measures to protect sensitive information or face significant consequences.

Much like their profit-driven counterparts, organisations in the non-profit sector are bound by these laws too. Security in grants management software is crucial. (Here are more specifics when you’re shopping for a grants management system.)

3. To maintain and grow credibility

With customers and investors increasingly aware of cybersecurity concerns, organisations committed to a sturdy security posture enjoy a healthy reputation.

Being known for using secure software can give your organisation a competitive advantage. The assurance that sensitive information is in safe hands can boost customer retention. Similarly, it can birth stronger business partnerships, better investment opportunities and higher valuations.

However, it’s important to provide official documentation of all security and data privacy compliances publicly on your organisation’s website, making it available and accessible for interested parties.

4. To prevent financial loss

Security should be the main priority in software procurement because it prevents financial loss in many ways.

While it keeps cyberattacks and ransomware at bay, it also preempts data breaches and the resulting fines, legal costs and damages to affected parties. Equifax’s 2017 security breach resulted in more than $1.4 billion in regulatory fines, legal settlements and security upgrades.

Interestingly, a low-risk profile and commitment to security avail businesses lower insurance premiums and better coverage terms.

5. To ensure continuity and growth

In 2014, cyber-attackers gained access to Code Spaces’ control panel which was used to manage its cloud resources. When the attackers demanded a ransom and the company refused to pay, the attackers deleted most of the company’s data and backups, destroying its infrastructure. Code Spaces was forced to close shortly—they couldn’t recover from the loss.

Prioritising security when procuring software is not just a trend; it’s mission-critical. Software with poor security exposes businesses to attacks which can disrupt and halt business operations. However, secure software systems allow organisations to expand and integrate new technologies without downtime or exposure that negatively impacts productivity and revenue.

Software security shouldn’t be an afterthought. Ranking it first when buying software is vital in proactively providing the defence your organisation needs to operate in our digital age.