More than half of technology, media and telecommunication (TMT) companies feel they are being left behind when it comes to handling security threats.
So claims Deloitte's Global Security Survey, which suggests 60 per cent of companies believe they are "falling behind" or still "catching up" with security threats.
The report also said just under a third (32 per cent) of organisations have reduced their information security budgets, and the majority have dedicated less than six per cent of their IT budget on information security.
It claimed security spending was falling despite massive efforts to digitise TMT companies' intellectual property around the world.
"Security is particularly vital in an era in which digital malevolence is more prevalent than ever," the report stated.
"Without smart investments in security and innovation, TMT companies might not be able to keep pace with the growing threats imposed by increasingly sophisticated attacks and emerging technologies."
The Deloitte survey also said that the greatest security threats for TMT companies came from within, adding that insider threats were now greater than ever.
It highlighted employees releasing sensitive information without realising what could happen, or using social networks and the web for activities which could reflect badly on the company.
Only 28 per cent of respondents were "very confident" or "extremely confident" when it came to dealing with internal threats - down from 51 per cent in 2008.
More worrying, the report also said that 41 per cent of the organisations surveyed had experienced at least one internal security breach in the last year.
