Inhouse vs Outsourced Cyber Security: What CISOs Should Know In 2023

Cyber threats have become rampant as data miners have become more sophisticated. The global cost of cybercrime is estimated to hit over USD$20 trillion by 2026.

The main contributors to this ever-rising cost are businesses. Since these losses can be unbearable, most small companies close within a few months after falling victim.

So, you’ll need a solid security strategy to protect your business data. However, there is no one-size-fits-all solution for all types of corporate operations. Your chosen approach will depend on your company’s size, type, and industry.

The most important decision you must make is choosing between an in-house team and an outsourced cybersecurity firm. Which one is ideal for your daily operations? Here is what you should know in 2023:

It involves employing an internal team of cybersecurity experts to manage and execute all cybersecurity functions. The team is supervised by your chief information security officer (CISO).

The work of these professionals is to identify and mitigate potential cyber threats. They also conduct regular assessments, respond to security incidents, and implement necessary security measures.

This phrase refers to hiring a third-party firm to manage your company’s cybersecurity functions. The outsourced provider offers a range of products and services, including threat detection, firewall management, and vulnerability assessment. Whatever you enjoy will depend on what you’ve paid for in your package.

Of course, external technicians can handle all cybersecurity-related tasks in your organization. However, keeping at least one person in your in-house team for a smoother flow of operations is always wise.

Conducting all cybersecurity functions in-house can be beneficial but comes with a fair share of potential risks. This section will discuss both sides of the coin.

Benefits

• Better control

It allows your organization to control its cybersecurity policies, procedures, infrastructure, and personnel effectively. You can quickly restructure and tailor all these factors to match your needs.

• Company familiarity

The in-house team understands your business’ culture and flow of operations. That makes it easier to strategize on how to protect sensitive information. These professionals can also work with other departments to align security ideas with the company’s objectives.

• Knowledge transfer

Unlike outsourced technicians, in-house IT experts are always on-site. Their presence enhances knowledge transfer between team members as newcomers learn from experienced staff. This aspect may lead to more significant expertise within the company over time.

Disadvantages

• Shortage of professionals

Statistics suggest that there are about four million cybersecurity experts. However, that’s not enough because the current demand outweighs the number of these personnel. Companies and outsourced security providers are scrambling for experts from the same talent pool. So, it’s challenging to find a cybersecurity professional for your business.

• Limited resources

Since your in-house team isn’t as specialized as outsourced companies, it’s likely to miss some crucial resources. This can be due to limited budget or inadequate personnel. Either way, you might still struggle to accomplish some tasks.

Outsourcing cybersecurity tasks is like surrendering your company’s defence control. But like anything else, it also has advantages and disadvantages:

Benefits

• Quick setup process:

All you need here is a contract with a cybersecurity provider, and they’ll take it from there. Once everything is signed, the third-party technicians set up your network, and you can enjoy the services without delays.

• Experience:

Most outsourced technicians have been in the field for many years. Their expertise can come in handy in creating actionable strategies that match modern threats.

• Cost-Effective:

You don’t need to hire many professionals or purchase specialized equipment and software. This can save you a lot of money that you’d otherwise use in setting up an in-house team.

Potential risks

• Standardized care:

Most providers shoehorn their clients into accepting predetermined care procedures. This can be biased as it doesn’t consider your company’s specific needs. Of course, you can address this by communicating with the provider regularly.

• Response time:

An in-house team can take less time to respond to cybersecurity incidents. However, third-party service providers may take time to do the same, especially if it requires the technicians to be on site.

Which cybersecurity strategy can work for you, given the details discussed above? If you’re on a tight budget, outsourcing cybersecurity functions may be ideal for you. You only need to pay a recurring subscription fee, and you’re good to go.

But the best option would be a hybrid approach. As you hire third-party companies to handle specific tasks, you can also have your in-house team as a backup. One or two experts are enough as their work will be to make sure everything is running as expected.

In-house cybersecurity involves hiring internal staff to handle cybersecurity functions. A third-party company comes in if you choose to go with outsourced cybersecurity. Both have their pros and cons, and it all depends on what works for your company. As such, you must consider your business size and demands to decide which one to employ in your organization.