Cybersecurity Budgets Grow, but Identity Governance Challenges Remain
Omada’s State of Identity Governance 2025 report highlights ongoing struggles with Identity Governance and Administration (IGA), even as security funding increases. Based on insights from over 500 IT and business leaders, the report reveals persistent gaps in automation, cost efficiency, and access control.
Michael Garrett, CEO of Omada, said in a company press release, “Digital identities are proliferating, and companies must account for this. Identity security is the key to cybersecurity.” He added, “there is no compromise on this critical capability but it must be fast, agile, simple to operate and low cost of total ownership.”
Security Spending on the Rise
Nearly 90% of surveyed organizations reported increased IT security budgets compared to last year. Companies are investing in cyber liability insurance, with 64.4% purchasing coverage to offset breach-related costs. Still, identity security remains a challenge, with some 95% of respondents acknowledging its critical role in cybersecurity strategy.
Identity Governance and Administration (IGA) Challenges
Many organizations still rely on outdated IGA systems. The report found that nearly four in ten organizations have yet to adopt SaaS-based IGA solutions. The most frequently cited issues include:
- Restrictive total cost of ownership (TCO): 60% of respondents flagged this as a key limitation.
- Manual processes: 61.2% noted time-consuming identity lifecycle management as a major hurdle.
- Complex access governance: 64.4% said managing user permissions across multiple systems remains challenging.
AI and Automation Drive Modernization
Artificial intelligence (AI) and automation have become the primary selection criteria for IGA solutions. Over 50% of respondents identified AI capabilities as crucial in reducing reliance on manual processes. Generative AI is in demand, with 51.2% of respondents prioritizing its use for decision-making and workflow automation.
Over-Permissioning Remains an Identitiy Security Risk
More than 73.9% of organizations admitted to granting excessive system access to employees, a slight increase from last year. This over-permissioning raises security risks, contradicting the confidence 89% of organizations express in detecting and responding to user behavior anomalies.
The Shift Toward Cloud-Based IGA
Modern identity governance solutions are increasingly cloud-based, with 56.8% of organizations citing role-based access control (RBAC) as a top priority. Additionally, organizations using legacy systems were 22.9% more likely to struggle with inefficient user onboarding and access management.
Quick Take On Identity Governance and Administration
AKA Conclusion
Despite better-funded security teams, organizations still face high operational costs, complex customization requirements, and access control challenges. The report suggests that adopting cloud-native, AI-driven IGA solutions could lower costs while enhancing security and compliance.
