Outsourcing vs. in-house security: Which is right for you?

Cybersecurity has become an essential component of any successful business. Whether you’re safeguarding sensitive customer data or protecting proprietary information, a strong security strategy is vital for mitigating risks and maintaining trust. 

One major decision businesses face is choosing between in-house security teams or outsourcing security to external providers. Each option comes with its own set of benefits and drawbacks, and the best choice often depends on the unique needs and resources of the organization.

Outsourcing security involves delegating some or all of your company’s security operations to third-party providers, typically Managed Security Service Providers (MSSPs). These providers bring specialized expertise, advanced technologies, and a scalable infrastructure that allows businesses to stay ahead of ever-evolving threats.

This article will dive into the key factors to consider when weighing in-house vs. outsourced security, along with the benefits, potential risks, and how to mitigate them. By the end, you’ll have a clearer picture of which approach best fits your business.

In-house vs. outsourced security: Making the right choice

Pros and cons of in-house security

An in-house security team gives your business complete control over every aspect of security operations. Here are the key pros and cons:

Pros and cons of outsourcing security

Outsourcing security to an MSSP provides access to experienced professionals and the latest security technologies without the need for in-house management.

Hybrid models: A balanced approach

For businesses that seek to combine the strengths of both in-house and outsourced security, a hybrid model can be the ideal solution. In this approach, a company retains some level of internal security management while outsourcing specific functions like 24/7 monitoring, threat detection, or incident response.​

The benefits of a hybrid model include:

• Increased flexibility: Businesses can keep control over sensitive security tasks while delegating time-consuming or specialized functions to an MSSP.
• Cost management: Hybrid models often allow companies to reduce costs by outsourcing expensive, round-the-clock monitoring while keeping other functions in-house.
• Scalability with control: This approach offers scalability for businesses without fully sacrificing direct oversight of critical security operations​.

Cost-effectiveness: Weighing the financial impact

Cost is a major factor in determining whether to handle security in-house or outsource it. In-house teams require substantial upfront investment in salaries, training, and technology, which can be overwhelming for smaller businesses. Outsourcing, on the other hand, provides a more predictable cost structure with minimal upfront investment, as MSSPs typically offer fixed pricing based on the services required​.

However, businesses should consider long-term costs. While outsourcing may appear more cost-effective initially, the cost of ongoing services could add up over time. Meanwhile, in-house teams, though expensive to maintain, provide deeper integration with business processes, which could lead to cost savings in some areas in the long run​.

Why outsource security? Key benefits for businesses

Outsourcing security has become an increasingly popular choice for businesses of all sizes. The flexibility, expertise, and scalability that MSSPs offer allow companies to focus on their core activities while ensuring that their cybersecurity is in capable hands. 

“For many organizations, particularly in highly regulated industries, outsourced providers bring cutting-edge tools and compliance expertise that would be difficult to replicate internally. With the accelerating pace of cyber threats, the ability of MSSPs to deliver continuous improvements in threat intelligence and compliance support gives companies a defensive edge that’s increasingly critical in today’s digital landscape.”

Stephanie Kristek, Director of Product Strategy & Integrations at Liquid Web

The key benefits of outsourcing security include:

24/7 coverage

Cyber threats don’t operate on a 9-to-5 schedule, and neither should your security. MSSPs provide around-the-clock surveillance and rapid incident response, giving businesses peace of mind knowing that their systems are always being monitored. 

With a dedicated team constantly looking for vulnerabilities, potential breaches are caught and addressed swiftly, often before they become serious issues​. This level of continuous coverage is difficult and costly to replicate with an in-house team, particularly for small to mid-sized businesses.

Scalability

Businesses are rarely static, and as they grow, so do their security needs. Outsourcing provides a scalable solution that can evolve with your company. Whether you’re expanding rapidly or experiencing fluctuating demand, outsourced security services can quickly scale up (or down) to meet your current needs​. 

Incident response

Outsourcing your security operations also grants access to specialized incident response teams that are trained to handle security breaches effectively. MSSPs often have incident response protocols in place, allowing them to react quickly when a threat is detected. Their expertise can make the difference between containing a breach or letting it spiral out of control​.

SOC as a service

Establishing and maintaining a fully operational Security Operations Center (SOC) can be extremely costly and resource-intensive. MSSPs often offer SOC as a Service, which provides businesses with access to a fully managed SOC without the overhead. A SOC is essential for comprehensive security monitoring, threat detection, and incident response, but many companies lack the resources to manage one in-house​.

Compliance management

For many industries, maintaining compliance with regulations such as GDPR, HIPAA, or PCI-DSS is a critical aspect of security. MSSPs can help businesses navigate these complex regulatory landscapes by offering compliance management services. These providers ensure that security practices align with legal standards, helping businesses avoid costly fines and reputational damage associated with non-compliance​.

Data security in outsourcing: Mitigating risks

Outsourcing security involves entrusting a third-party provider with access to sensitive systems, data, and infrastructure. While many MSSPs have advanced safeguards in place, businesses should be aware of the following risks:

• Data breaches: Sharing sensitive information with an external provider increases the possibility of unauthorized access. If the provider’s security protocols aren’t airtight, this could lead to data leaks or breaches​.
• Compliance failures: Non-compliance with regulatory frameworks such as GDPR, HIPAA, or PCI-DSS can lead to hefty fines and reputational damage. Outsourcing security might lead to gaps in regulatory adherence if the provider does not prioritize compliance​.
• Vendor lock-in: Once an MSSP is deeply integrated into your security infrastructure, it can be difficult to switch providers. This introduces a dependency risk, especially if the provider’s services decline over time​.

Success criteria for selecting the ideal security service provider

Provider expertise and reputation

A reputable security provider will bring a wealth of experience and industry knowledge to the table. This includes expertise in handling the specific cybersecurity challenges your industry faces. Before signing any contract, thoroughly investigate the provider’s background and reputation by:

• Checking certifications: Look for industry-standard certifications such as Certified Information Systems Security Professional (CISSP), Certified Information Security Manager (CISM), or Certified Ethical Hacker (CEH). These qualifications demonstrate that the provider has staff with validated skills in cybersecurity​.
• Case studies and client references: Reviewing case studies or asking for client references can provide insight into how the provider has successfully handled security operations for similar businesses​.

Service Level Agreements (SLAs)

A well-defined Service Level Agreement (SLA) is crucial to ensuring that your provider delivers the services you need at the expected level of quality. The SLA should include:

• Response times: Clearly outlined response times for different types of incidents, ensuring that the provider will act quickly during a security event​.
• Performance metrics: Defined metrics for uptime, availability of monitoring, and how quickly threats will be neutralized​.
• Penalties for non-compliance: Ensure that the SLA includes penalties if the provider fails to meet its obligations. This adds an additional layer of accountability​.

Certifications and compliance

Security providers must adhere to the latest standards and regulatory requirements. Before partnering with an MSSP, verify that they have the necessary certifications and compliance programs in place, which might include:

• ISO 27001: A global standard for information security management systems, which indicates that the provider follows best practices for securing sensitive information​.
• SOC 2: This certification demonstrates that the provider has controls in place to protect customer data, especially in cloud environments​.
• Industry-specific certifications: Depending on your industry, ensure that the provider is certified in areas such as HIPAA, PCI-DSS, or GDPR compliance​.

Transparency and reporting

Transparency is key when it comes to cybersecurity operations. Your provider should offer regular, detailed reports that give you clear visibility into ongoing security activities, including:

• Incident reports: Detailed information on any security incidents, including how they were handled and the steps taken to prevent future occurrences​.
• Regular security assessments: Routine assessments of your security infrastructure, identifying potential vulnerabilities and offering solutions to address them​.
• Real-time monitoring dashboards: Some providers offer clients access to real-time dashboards that show current security statuses, active threats, and ongoing mitigation efforts​.

Elevate your security: Harness the power of Liquid Web’s private cloud

Choosing the right partner to outsource your security needs is a critical decision. With Liquid Web’s private cloud services, businesses can elevate their security posture while addressing the common concerns associated with outsourcing. 

Liquid Web understands that every business has unique security requirements. Whether you’re a small business looking for scalable solutions or a larger enterprise needing robust compliance measures, Liquid Web’s private cloud solutions are customizable to meet your exact needs. This personalized approach ensures that your security framework aligns smoothly with your business goals and regulatory obligations.

Not to mention, Liquid Web provides around-the-clock monitoring and incident response, ensuring your systems are protected day and night. Their dedicated team of security professionals works proactively to mitigate risks and handle breaches swiftly, reducing downtime and limiting the impact on your business operations​.

Plus, Liquid Web offers a fully managed Security Operations Center (SOC), allowing businesses to benefit from expert security monitoring without having to build and maintain the infrastructure internally. Their SOC as a Service includes threat detection, real-time alerts, and comprehensive reporting.

To make things even easier, Liquid Web ensures that your business remains compliant with critical regulations like HIPAA, PCI-DSS, and GDPR, providing peace of mind that your data is handled in accordance with the highest standards​. Furthermore, with clearly defined SLAs, you can be confident that Liquid Web will meet your security needs with guaranteed performance​.

The final verdict: Choose Liquid Web for your security needs

In the ongoing battle to secure your business against ever-evolving cyber threats, the choice between outsourcing and maintaining an in-house security team is not an easy one. Both approaches have their unique advantages, and the right decision depends on the specific needs, resources, and goals of your organization.

Regardless of the approach you choose, it’s essential to partner with a security provider that understands your business and can offer the right combination of tools, expertise, and support to keep your organization safe. Liquid Web’s private cloud solutions address the common concerns associated with outsourcing, providing businesses with trusted, tailored, and transparent security solutions that ensure compliance and protect critical data.

Take the next step in securing your business. Reach out to Liquid Web today and discover the difference a trusted security partner can make!

Note on the original publish date: This blog was originally published in October 2021. It has since been updated for accuracy and comprehensiveness.