UK: Cyber Security and Resilience Bill & Updated NIS Regime
- Expands the NIS Regulations to sectors like transport, energy, cloud and digital services. Companies must report cyber incidents and manage third-party supply-chain risks.
- Introduces stricter Cyber Essentials/Plus requirements, with regulators empowered to enforce standards and conduct audits.
EU: NIS2, DORA & Cyber Resilience Act
- NIS2 (effective Oct 2024) broadens scope to include digital infrastructures, telecom, health, finance, public services with mandatory incident reporting, supply-chain oversight, encryption, and fines up to €10M+.
- DORA (effective Jan 17, 2025) requires financial services and their critical ICT vendors to implement robust risk frameworks, resilience testing, and multi-party incident reporting.
- Cyber Resilience Act (CRA) mandates secure-by-design for digital products, SBOMs, vulnerability reporting, and 24-hour incident notifications, applies even to non-EU manufacturers targeting EU markets.
US: HIPAA Updates, CIRCIA & SEC Incident Disclosure
- HIPAA security rules propose mandatory MFA, stronger encryption, and vendor security audits for health data handlers.
- CIRCIA mandates that critical infrastructure entities report cyber incidents and ransom payments to CISA, with executive-level accountability.
- SEC rules require publicly listed companies to disclose significant cybersecurity incidents within four business days, along with risk frameworks.
Why Indian IT Firms Should Care
1. Global Compliance for Global Clients
Multinational clients (especially in finance, healthcare, public services, and critical infrastructure) will demand adherence to NIS2, DORA, CRA, CIRCIA, and HIPAA guidelines, extending their compliance needs to Indian vendors.
2. Third‑Party Oversight & Audits
Under NIS2, DORA, and upcoming UK rules, vendors face intense scrutiny: security supply-chain assessments, penetration testing, incident drill, and vulnerability logging (SBOMs).
3. Heavy Penalties for Non‑Compliance
- EU fines up to €15M or 2.5% of global revenue under CRA
- UK penalties up to £20k/day for guideline violations
- SEC enforcement actions and U.S. fines for reporting delays
4. Rising Demand for Security Services
Indian firms can lead by offering standardized SASE, Zero Trust, supply-chain risk assessment, incident response, and resilience testing, an opportunity underlined by both regulation and demand.
Strategic Steps for Indian IT Firms
1. Conduct a Regulatory Gap Analysis
- Identify client-relevant frameworks (NIS2, DORA, HIPAA, CIRCIA) and map current controls to upcoming obligations.
2. Strengthen Security Instrumentation
- Apply multi-factor authentication (MFA), encryption at transit & rest, endpoint detection
- Implement SBOM generation, secure build pipelines, and configuration management.
3. Formalize Risk & Incident Programs
- Establish incident response with playbooks, reporting processes, and recovery drills
- Build vendor-risk governance and data-sharing agreements.
4. Gain Certifications
- Obtain ISO 27001, Cyber Essentials (UK), SOC 2, or HIPAA readiness to support defense-in-depth and client trust.
5. Expand Service Offerings
- Pitch managed security, SASE, Zero Trust architecture, continuous monitoring, and vulnerability scanning as compliance-ready services.
6. Focus on Workforce & Culture
- Drive staff training on updated regulations, incident reporting processes, and post-breach response.
Impact Examples & Opportunities for Growth
- EU clients may choose only NIS2/DORA-compliant suppliers, making compliance a must for market access.
- CRA compliance unlocks new business in IoT and digital device manufacturing.
- Strengthened US regulations (SEC, CIRCIA) boost demand for secure cloud, incident reporting, and ransomware-resistant architectures.
Final Takeaway
New cybersecurity laws in the UK, EU, and US aren’t just local; they reshape global IT sourcing and compliance. Indian IT firms that align themselves early, strengthening security, formalizing audits, adding resilience services, training staff, and earning certifications will not only avoid fines but also emerge as trusted global partners.