Introduction
Identity and Access Management (IAM) has long been viewed as a back-office function a necessary evil, a cost centre, or just another line item on the IT budget. But that’s a narrow view. In today’s digital-first world, IAM isn’t just about controlling access; it’s about enabling growth, reducing risk, and creating measurable business value. When IAM is implemented strategically, it becomes the backbone of secure and seamless digital interactions, transforming it from a compliance checkbox into a revenue enabler and competitive differentiator. Let’s unpack how IAM drives real value for businesses of all sizes.
Here are some real-life inspired examples where IAM (Identity and Access Management) proved to be a powerful business driver rather than just an IT cost:
✅ 1. Aadhaar & UIDAI’s IAM Backbone
Sector: Government of India
IAM Role: Authentication & digital identity
Impact:
- Enabled over 1.3 billion identities to be verified across platforms (banking, telecom, subsidies).
- Reduced subsidy leakages by over ₹90,000 crore, according to NITI Aayog reports.
- Simplified onboarding & KYC, saving public and private enterprises time and operational costs.
The IAM layer was not a cost centre but a national enabler for financial inclusion and digital governance.
✅ 2. HDFC Bank’s IAM-Led Digital Transformation
Sector: HDFC Bank
IAM Role: Secured access across cloud, apps, and the remote workforce
Impact:
- Scaled secure access during COVID without downtime.
- IAM integration enabled seamless access to 120+ critical banking apps, helping improve customer service.
- Enhanced compliance and reduced insider threats; reduced fraud cases and audit risks.
IAM played a strategic role in digitisation, proving its value in risk management and business continuity.
✅ 3. Infosys’ IAM Automation for Client Environments
Sector: Infosys (client-side IAM deployments)
IAM Role: IAM service provider for Fortune 500 clients
Impact:
- Developed IAM frameworks that reduced access provisioning time by 80%.
- Ensured compliance across highly regulated verticals like BFSI and healthcare.
- Helped reduce fines and improve audit scores for clients.
IAM became a value proposition in Infosys’ managed services; helping clients reduce costs and increase operational agility.
✅ 4. TCS’s Zero Trust Security Model (with IAM Core)
Sector: Tata Consultancy Services
IAM Role: Built Zero Trust IAM architectures for global clients
Impact:
- Mitigated ransomware and phishing threats with adaptive access controls.
- Enabled clients to safely transition to hybrid work models, maintaining data security.
- Showed clients ROI via reduced data breaches and faster compliance certification.
IAM wasn’t a backend tech; it was core to business resilience and trust building.
✅ 5. NPCI (National Payments Corporation of India)
Sector: NPCI for platforms like UPI & RuPay
IAM Role: Real-time transaction access and user authentication
Impact:
- Handles millions of identity verifications per minute.
- Ensures fraud prevention at scale with layered IAM controls.
- Helped make UPI a trusted brand, now processing ₹18+ lakh crore/month (2024 data).
IAM wasn’t just security; it enabled India’s fintech explosion.
Let’s decipher the conversation into layman’s voice
Section 1: From Cost Center to Value Creator
For decades, IAM was viewed as a burden. Companies saw it as a technical necessity to keep the bad guys out and auditors at bay. But that thinking misses a key opportunity. Every login, every permission granted, every identity provisioned or deprovisioned represents a potential efficiency gain or security improvement.
Take, for example, the traditional onboarding process. Without IAM, it’s manual, error-prone, and slow; costing time and money. With modern IAM solutions, onboarding can be automated, reducing human error and accelerating time-to-productivity. Similarly, when employees leave, automated deprovisioning prevents orphaned accounts and potential insider threats.
This operational efficiency directly translates to bottom-line savings. Studies by Forrester and Gartner consistently show that modern IAM deployments can reduce costs by as much as 30% through automation alone.
But the real magic happens when you think beyond cost savings. IAM also reduces the risk of data breaches and compliance fines; costs that can be devastating. With robust IAM in place, the average cost of a breach drops dramatically because of faster detection and containment.
So yes, IAM can save you money, but that’s just the beginning.
Section 2: Enabling Digital Transformation
In the era of digital transformation, IAM becomes the linchpin for seamless user experiences. Businesses are moving more processes online; remote work, digital marketplaces, and customer self-service channels are the norm, not the exception.
Consider the user journey. A smooth, secure experience is critical for customers and employees alike. IAM solutions like Single Sign-On (SSO) and Multi-Factor Authentication (MFA) don’t just protect data; they remove friction.
A 2023 survey by Okta found that companies using modern IAM saw a 20% increase in employee productivity because workers spent less time juggling passwords and access requests. For customers, secure, frictionless access translates to better engagement and loyalty.
IAM also plays a pivotal role in integrating diverse platforms. In a world of SaaS apps and APIs, identity federation enables businesses to connect services quickly, scaling up without compromising security. This means faster time-to-market and more agility in responding to changing customer demands.
Beyond this, IAM can fuel innovation. Developers can build new services with confidence, knowing the identity layer is handled. Business leaders can launch new products or pivot to new models, supported by a secure, scalable IAM foundation.
IAM isn’t just an IT tool; it’s the gateway to digital transformation.
Section 3: Securing the Business, Protecting the Brand
One of the most compelling ways IAM drives value is through risk reduction. Cyber threats are evolving, and identity-based attacks are on the rise. Verizon’s 2024 Data Breach Investigations Report found that 80% of breaches involved compromised credentials. IAM is the frontline defense against these attacks.
Modern IAM systems leverage advanced technologies like behavioral analytics and AI-driven risk scoring to detect suspicious activity in real time. This means security teams can respond faster and more effectively, minimising damage.
But there’s more. A breach isn’t just an IT headache; it’s a brand killer. Customers trust businesses to protect their data. When that trust is broken, the financial and reputational fallout can be immense. IBM’s 2024 Cost of a Data Breach report found that the average cost of a breach globally is now $4.45 million, but the impact on customer loyalty can be even worse.
By strengthening IAM, businesses send a clear signal: We take security seriously. This boosts customer confidence and reinforces the brand’s reputation as a trustworthy partner.
Moreover, IAM helps businesses stay ahead of regulatory demands. From GDPR to India’s DPDP Act, privacy regulations are becoming stricter. IAM ensures the right people have the right access at the right time; key for demonstrating compliance and avoiding fines.
In this way, IAM isn’t just a security tool; it’s a brand and trust enabler.
Section 4: IAM as a Business Enabler
Perhaps the most exciting aspect of modern IAM is how it becomes a business enabler. It’s no longer about “locking things down”; it’s about opening new opportunities securely.
For example, consider the role of IAM in mergers and acquisitions. When two companies come together, IAM can streamline the process of integrating systems and identities, reducing downtime and friction. This means the business can start reaping the benefits of the merger faster.
Similarly, for companies expanding globally, IAM ensures that new teams and partners can be onboarded seamlessly, no matter where they are in the world.
IAM also empowers innovation. Think about how identity-based insights can drive personalization and better customer experiences. Businesses can understand who their users are, what they need, and how to serve them better, driving loyalty and revenue.
Even in the fast-growing gig economy, IAM plays a role. It can manage dynamic access for contractors, freelancers, and partners, balancing security with agility.
By shifting the mindset from IAM as a cost to IAM as an investment, businesses unlock a new world of possibility. Every secure login, every automated approval, every data-driven decision adds up to real, measurable business value.
Conclusion
For too long, IAM has been stuck in the shadows of IT budgets, seen as a necessary cost but rarely celebrated as a business driver. That thinking is outdated. Modern IAM solutions are no longer just about managing passwords and permissions; they’re about enabling secure digital experiences, driving operational efficiency, and building trust with customers and partners.
In a world where data is currency and digital trust is everything, IAM is the foundation for success. It’s not a cost centre; it’s a catalyst for growth.
So next time someone says “IAM is just an IT cost,” remember: it’s one of the smartest investments your business can make.
