Cyber security has become a top priority for companies in recent years. As cyber attacks and data breaches increase in frequency and severity, organizations are looking for ways to protect their systems and data. One strategy many companies use is outsourcing some or all of their cyber security needs to managed security service providers (MSSPs). But is outsourcing cyber security right for every company? There are pros and cons to consider.
Quick Answers
What is outsourcing cyber security?
Outsourcing cyber security means hiring an outside company to manage and monitor some or all of an organization’s cyber security defenses. This can include services like managing firewalls, monitoring networks for threats, responding to security incidents, providing security awareness training, and more.
Why do companies outsource cyber security?
There are several potential benefits to outsourcing cyber security:
– Access to expertise and advanced technology that may not be available in-house
– Ability to focus internal resources on core business goals rather than cyber security
– Potential cost savings compared to hiring and training in-house cyber security staff
– Assistance meeting compliance requirements around data security and privacy
– Around-the-clock monitoring and incident response from outsourced providers
What are the risks of outsourcing cyber security?
While there are benefits, some potential risks include:
– Loss of control over sensitive systems and data
– Dependence on an outside provider for critical security functions
– Security risks if the provider lacks adequate controls or experiences a breach
– Communication and coordination challenges integrating with in-house teams
– Long-term contracts can reduce flexibility to change providers
The Trend of Outsourcing Cyber Security
Outsourcing cyber security has become increasingly popular. According to various surveys and reports:
– 72% of organizations outsource some cyber security functions, up from 70% in 2020 (ISACA 2021 Cybersecurity Survey)
– The global cyber security services market is estimated to reach $346.5 billion by 2030 with a compound annual growth rate of 11% from 2022 to 2030 (Fortune Business Insights)
– Top outsourced cyber security services include managed detection and response, vulnerability assessments, penetration testing, compliance monitoring, security awareness training, and more (Mordor Intelligence)
Several factors are driving increased outsourcing of cyber security:
– Shortage of in-house cyber security talent – hiring and retaining expertise is challenging
– Increasing sophistication of cyber attacks requiring advanced capabilities
– Growing security compliance mandates around data protection, industry regulations, etc.
– Complex, heterogeneous IT environments difficult for internal teams to fully secure
– Tight budgets limiting investments in in-house cyber staff and tools
For many companies, outsourcing provides a way to cost-effectively access specialized security talent and technology. Gartner predicts more than 50% of organizations will outsource cyber security by 2025.
Benefits of Outsourcing Cyber Security
Outsourcing cyber security can provide many potential advantages, including:
Access to Advanced Security Expertise and Technology
MSSPs focus exclusively on cyber security, allowing them to develop deep expertise with the latest tools and techniques. They can provide capabilities that organizations may not be able to develop in-house in a cost-effective manner. These can include advanced threat detection, automation, artificial intelligence, and more.
Improved Risk Management
Working with an MSSP allows an organization to benefit from the provider’s experience managing security risks across many clients in multiple industries. MSSPs have visibility into threats impacting other organizations, which enables them to better identify emerging risks.
Faster Incident Response
Because MSSPs specialize in security monitoring and response, they are able to react more quickly to detected incidents. They have established processes to investigate, contain, and remediate threats. Fast response times can help limit damages from breaches.
Meet Compliance Requirements
MSSPs stay up-to-date on the latest security frameworks and regulations. They can advise clients on meeting compliance standards and provide auditing and reporting. This helps reduce organizational risks associated with non-compliance.
Increased Cost Efficiency
The economies of scale MSSPs achieve allow them to offer services at a lower overall cost compared to building large internal teams. Organizations only pay for the services they need rather than hiring full-time cyber staff. Initial investments in tools and infrastructure are also reduced.
Scalability and Flexibility
As security needs evolve, organizations can easily add or reduce services as necessary. MSSPs can also quickly allocate additional resources in response to changes in the threat landscape or business requirements. It is easier to scale services up and down versus adding or removing in-house staff.
Allow Internal Teams to Focus on Core Business
Outsourcing handles routine security tasks and monitoring, freeing up internal IT personnel from this burden. This allows them to better support business objectives and strategic initiatives rather than just “keeping the lights on” for security.
Risks and Challenges of Outsourcing Cyber Security
Despite the benefits, there are also notable risks and challenges to evaluate when outsourcing cyber security:
Loss of Control
Organizations cede some control over security operations and tools to the provider. Important security decisions may be made without internal stakeholder input. The MSSP may not fully understand the client’s unique risks and priorities.
Integration and Coordination Challenges
Effective coordination and consistent communication is required when outsourcing a portion of cyber security. Integration challenges can create gaps in protection.
Dependency on a Third Party
Organizations become heavily dependent on the provider to deliver contracted services. If the MSSP experiences operational problems or a breach, clients are put at significant risk.
Compliance Considerations
Clients must ensure MSSPs meet all necessary compliance standards given their access to sensitive data. Providers themselves also represent a compliance risk if their controls are inadequate.
Long-Term Contracts and Costs
Lengthy, complex contracts with large upfront investments make it difficult to change providers if issues arise. Some hidden costs may emerge over time raising TCO beyond expectations.
Security Risks and Breaches
Despite expertise and technology, MSSPs can still be breached themselves potentially impacting their clients. Clients also lose full visibility into their security posture when outsourcing.
Talent Development Challenges
Relying heavily on outsourcing can hinder development of internal cyber security skills and experience. This can perpetuate dependence on outside help versus building robust in-house capabilities.
Key Factors When Considering Outsourcing Cyber Security
The risks and benefits of outsourcing cyber security depend heavily on the provider selected and how services are implemented. Organizations should carefully evaluate several factors when deciding whether to outsource and selecting an MSSP:
Sensitive Data and Systems
Consider the sensitivity level of systems and data impacted and whether full control is required in-house. Limit outsourcing for extremely sensitive resources.
In-House Capabilities
Assess existing staff skills and bandwidth. Outsourcing augments capabilities that would be difficult to develop internally in the near-term.
Cost Savings
Realistically estimate the costs versus keeping security fully in-house. Include RFP/vendor selection, transition, tool investments, and contractual services.
Compliance Requirements
Factor whether outsourcing improves or complicates compliance with regulations like HIPAA, PCI DSS, etc. based on the provider.
Threat Landscape
Routine security operations can be outsourced, but high-risk organizations may want to keep incident response and threat hunting in-house.
Relationship and Governance
Clearly define expectations, responsibilities, metrics, and governance for the outsourced services. Strong communication and integration is critical.
Provider Capabilities and Track Record
Thoroughly validate provider experience, areas of expertise, client references, technology stack, and their own security program.
A careful, risk-based approach evaluating these factors will help determine if outsourcing improves an organization’s overall security posture cost-effectively or if existing in-house resources provide better protection.
Models for Outsourcing Cyber Security
If outsourcing cyber security is deemed advantageous, organizations have several models to consider:
Outsourcing the Entire Security Program
Organizations hand responsibility for all cyber security operations, technology, and staffing to an MSSP. This represents maximum leverage of provider scale and skills. However, risks around loss of control and dependency are also highest with a fully outsourced model.
Outsourcing Selected Capabilities
Rather than outsourcing the entire program, organizations can engage an MSSP for targeted services that address specific gaps or needs. Examples include managed detection and response, network monitoring, penetration testing, and security training.
Hybrid Model
Organizations combine internal security resources with selective outsourcing of targeted services or off-hours monitoring/response. This balances internal capabilities with provider advantages where most beneficial. Strong coordination between internal and external teams is critical.
Staff Augmentation
In this model, an MSSP provides personnel to work on-site alongside the client’s own cyber staff. This could include contracted security architects, analysts, incident responders, etc. to temporarily expand capabilities.
The optimal model depends on factors like budget, risk tolerance, existing staff skills, and specific security gaps. Avoid “all or nothing” thinking – hybrid approaches focused on high value-added services often provide the best ROI.
Implementing a Successful Outsourced Security Program
The following best practices help maximize the advantages of working with an MSSP while minimizing associated risks:
Document Detailed Requirements
Provide potential providers a thorough RFP outlining your security gaps, compliance needs, technology environment, required skillsets, and performance KPIs like response times.
Maintain Visibility into Operations
Contractually ensure client visibility into the MSSP’s operations, procedures, tools, and personnel. This reduces “black box” risks associated with loss of control.
Establish Comprehensive Governance
Institute regular status meetings, reporting standards, escalation procedures, change control processes, and feedback channels between provider and client teams.
Integrate with In-House Resources
Ensure outsourced capabilities mesh seamlessly with internal systems, staff, and processes. Lean towards unified tools versus isolated outsourced islands of technology.
Start with Non-Critical Areas First
When initially outsourcing, transition secondary systems and data first to prove the model before handing over more sensitive environments like payment systems.
Retain Strategic Security Functions In-House
Keep high-impact skills like threat modeling, security architecture, and executive stakeholder reporting in-house despite outsourcing tactical operations.
Frequently Review Progress and KPIs
Monitor service delivery against contractual metrics like response time, uptime, adherence to policies/procedures, and periodic audits. Hold providers accountable.
Maintain Clear Reporting Escalation Processes
Ensure the MSSP has documented channels for promptly reporting issues to client management. Handle sensitive alerts discreetly to avoid unnecessary disruption.
Thoughtfully implementing outsourced security following best practices will maximize benefits while avoiding common pain points organizations can experience with partners.
Key Players in the Managed Security Services Market
Many technology firms offer managed security services, but some notable leaders in the MSSP market include:
IBM
One of the largest and oldest MSSPs, IBM offers their X-Force Red and QRadar technologies along with managed services for threat monitoring, incident response, identity management, and cloud security.
Accenture
This global consulting firm provides MSSP services like security operations center (SOC) monitoring, vulnerability management, compliance auditing, and risk advisory services across industries.
SecureWorks
With over 20 years of managed security experience, SecureWorks offers broad services including detection/response, vulnerability assessments, awareness education, and more for organizations of varying size.
AT&T
The well-known telecom company offers cybersecurity services through AT&T Cybersecurity, which manages and monitors security technology along with threat intelligence and response capabilities.
Verizon
In addition to network services, Verizon Business delivers a broad MSSP portfolio spanning threat protection, detection and response, identity access management, advisory services and manned SOCs.
DXC Technology
This company focuses on cybersecurity services for critical infrastructure sectors like energy and government. Offerings include SOC monitoring, incident response, risk consulting, and more.
These providers and many other MSSPs offer deep security expertise, advanced technology, and economies of scale that make outsourcing an appealing option for strained cybersecurity teams.
Conclusion
Outsourcing cybersecurity is a growing trend as organizations recognize internal limitations facing increasingly sophisticated threats. Partnering with MSSPs can provide valuable access to expertise and technology difficult for overburdened IT teams to build themselves. It can also be a more cost-effective solution compared to hiring and training large internal teams.
However, outsourcing does not come without notable risks around loss of control, risks of depending heavily on third parties, and communications challenges integrating with in-house staff. Companies must weigh benefits against these potential downsides when considering partners. A hybrid approach focused on outsourcing commoditized functions while keeping strategic oversight in-house often provides optimal value.
With careful provider selection and governance models that align outsourced services with business needs, companies can effectively leverage MSSPs to improve their security postures. But blindly handing the keys to the kingdom to providers without maintaining involvement is risky. Analyzing where providers can best supplement in-house capability gaps, rather than completely replacing internal teams, leads to the most successful security partnerships.