The findings suggest that security weaknesses among Indian suppliers are both more widespread and severe than analysts initially anticipated. These vulnerabilities could create a domino effect, exposing global companies that rely on Indian vendors to significant cyber threats. Despite the generally strong security posture of Indian IT service providers, they recorded the highest number of breaches in the study, underscoring their position as prime targets for attackers.
SecurityScorecard noted that IT service providers worldwide face heightened cyber risks due to their central role in enabling third-party access, their expansive attack surfaces, and their value as high-profile targets. In India, IT companies were found to be particularly vulnerable to typosquatting domains, compromised credentials, and infected devices. The research further revealed that suppliers of outsourced IT operations and managed services were linked to 62.5% of all documented third-party breaches in the country—the highest proportion the company has ever recorded.
Given India’s dominant role in the global IT services market, the implications are profound. Multinational corporations across industries rely heavily on Indian IT vendors, making them critical nodes in the international digital economy. “India is a cornerstone of the global digital economy,” said Ryan Sherstobitoff, Field Chief Threat Intelligence Officer at SecurityScorecard. “Our findings highlight both strong performance and areas where resilience must improve. Supply chain security is now an operational requirement.”
The report also emphasized the risks of “fourth-party” vulnerabilities, where the suppliers of Indian companies themselves create additional points of weakness. A single ransomware attack or disruptive incident against an Indian vendor, the researchers warned, could halt manufacturing, delay service delivery, or disrupt logistics across multiple countries.
The risks are not limited to India. A separate SecurityScorecard study revealed that 96% of Europe’s largest financial institutions have been affected by a breach at a third-party supplier, while 97% reported breaches stemming from fourth-party partners, a sharp increase from 84% two years earlier.
As global supply chains become increasingly interconnected, these findings highlight the urgent need for businesses to strengthen third-party risk management and enforce stricter cybersecurity practices across their vendor ecosystems. Without stronger safeguards, both direct and indirect supplier vulnerabilities could leave multinational enterprises exposed to significant financial and operational disruptions.
