SOC Outsourcing vs. In-house SOC: Pros and Cons

Setting up a Security Operations Centre (SOC) has become a natural step for organisations due to the growing complexity and frequency of cyber threats. According to the UK Government's Cyber Security Breaches Survey 2024, half of businesses (50%) and approximately a third of charities (32%) reported experiencing a cyber security breach or attack in the past year.

The scope of Security Operations Centres (SOCs) can vary hugely, but most are responsible for detecting, analysing and responding to cyber threats. 

A SOC can include a range of security activities, including:

• vulnerability assessment

• compliance activities

• continuous monitoring

• rapid incident response

• proactive threat detection

• system configuration to ensure a proactive defence posture against cyber attacks

Once the need for a SOC has been established, organisations are then faced with the decision of whether to operate their SOC in-house or outsource it to a third party. Understanding the major differences between them can help organisations make an informed decision which aligns with their unique security and operational requirements. Each option has its own advantages and disadvantages, which we will examine below.

Pros of In-house SOCs

Complete control and customisation

Running an in-house SOC provides organisations with more direct control over their cybersecurity operations and staff, which in principle enables an immediate threat response. It also offers the flexibility to tailor the SOC structure and security solutions to fit the organisation’s specific needs and internal processes, ensuring greater management oversight and accountability.

On-site presence and company knowledge

An in-house SOC allows teams to develop deep knowledge of the organisation’s unique systems, enabling them to identify specific threats more effectively and respond quickly to incidents.

Data remains internal

Operating the SOC in-house provides a level of comfort for organisations that are reluctant to have their data managed outside their own physical servers or infrastructure by third-party services, despite the fact that leading service providers will ensure adequate protection, access control and governance, and will be compliant with regulations such as the GDPR and standards like ISO 27001 and CREST

Cons of In-house SOCs

High costs

The biggest disadvantage - and main reason why many organisations choose to outsource their SOC - is cost. The upfront investment is substantial (security tools, staffing, training and infrastructure). The challenges and costs of scaling an in-house SOC to manage increased workloads or evolving cyber threats further down inevitably prompt many businesses leaders to compare in-house costs against the cost of outsourcing early in the decision making process

Talent shortage and retention

The global shortage of cybersecurity talent makes it challenging to recruit, train, and retain skilled professionals for key roles like SOC analysts, incident responders, engineers and threat hunters. Such skilled professionals are in high demand, there is a lot of competition for their expertise, and they can command very competitive salaries. Additionally, the high stress and burnout levels in the field contribute to increased staff turnover. As threats become ever more sophisticated, the organisation must review and adapt its internal SOC to cover gaps in expertise, particularly in specialised areas like incident forensics or proactive threat hunting, which can be difficult to address with an in-house team. In addition, the ever-changing cybersecurity landscape requires SOC staff to continually update their skills and knowledge to stay on top of their game.

Spot the early warning signs that your in-house SOC is under pressure.

24/7 coverage difficulties

Cybercriminals don’t just work 9-5. Attacks can happen at any time of day, often outside business hours when internal IT teams aren’t monitoring. Without continuous monitoring, threats can go unnoticed for hours - potentially leading to serious breaches. To be effective, a SOC must operate 24/7 to oversee the organisation’s networks, servers, endpoints and applications.  This requires staffing in shifts, which can put further pressure on resources and employees.

Learn why always-on protection is a core benefit of outsourcing.

Keeping up with threats and technology

This is another challenge for an in-house SOC, requiring ongoing investment in technology upgrades for monitoring and management, as well as continuous staff training. Management and integration of a wide range of security tools can also be overwhelming, particularly given the SOC’s crucial role in ensuring the organisation meets regulatory and compliance requirements.

Pros of Outsourced SOCs

Access to expertise and latest tech 

Establishing an internal SOC requires substantial investments in time and resources, while an optimised outsourced SOC which integrates seamlessly with existing IT infrastructure can be up and running very quickly. 

Outsourcing your SOC gives an organisation immediate access to cybersecurity expertise minus the overhead of a building and maintaining an internal team.  Thanks to access to a global network of threat intelligence resources, outsourced SOC providers are able to identify, detect and respond to emerging threats before they cause significant harm. . The MSSP’s team of security professionals includes specialist knowledge and experience in incident response, security management, threat intelligence and compliance, which ensure that an organisation’s security measures are up to date and in line with industry standards and regulatory requirements. This not only reduces the risk of non compliance penalties for the organisation, but can be complex and time consuming for an internal SOC to manage by themselves. 

Outsourced SOCs are able to upgrade to the latest security tools to provide superior protection, including threat detection systems, vulnerability management platforms and automation. Many cutting-edge tools are often too expensive or require specialist skills for organisations to implement and manage in-house, but by partnering with an MSSP, they gain access to the advanced technologies without incurring the high costs or expertise needed to operate them themselves.

Cost effective and predictable spend

Outsourcing your SOC is a very cost effective, scalable and flexible option for most organisations, with less initial investment, no ongoing maintenance costs, not to mention no internal recruitment, infrastructure demands or set up costs (technology, personnel, training). By partnering with an MSSP, businesses can leverage advanced security technologies without the direct costs of acquiring and managing them themselves. Thanks to their expertise in SIEM and SOC management, MSSPs operate with high efficiency, ensuring long-term ROI for the organisation which has partnered with them.

Spend is more predictable when the SOC is outsourced. The outsourcing cost is influenced by service complexity, technology stack, compliance needs, and geographic location, and is usually covered by one of the subscription pricing models covered in our blog, SOC Outsourcing Costs: What You Need to Know – flat-rate, device/user based, usage-based, tiered or customised.

24/7 365 monitoring

As mentioned above, continuous monitoring on a 24/7 basis is a must for a SOC. This would be very expensive to operate in-house, while an outsourced SOC is able to offer always-on security with dedicated teams responding in real time.

Faster deployment and scalability

Outsourced SOCs are often able to handle and mitigate security incidents more quickly and efficiently than their in-house equivalents. This is because they have dedicated teams of experts whose sole focus is to monitor, detect and respond to threats.

When using an outsourced SOC, an organisation can easily adjust its security services through subscription plan modifications. This eliminates the need for major infrastructure upgrades and investments which would be required if they had built an in-house SOC.

Focus on core business 

Using an outsourced SOC enables an organisation to concentrate on its core business operations by freeing internal resources from the responsibility of managing cybersecurity. Organisations can then focus on growing their businesses, reducing the pressure on internal IT teams who would otherwise be overloaded with security alerts. Outsourcing will provide a clear structure of duties, avoiding confusion over who is responsible for what, thereby improving productivity and efficiency.

Cons of Outsourced SOCs

Less direct control

Letting go of some level of control over your organisation's control over your organisation's cybersecurity infrastructure and protocols is in theory the biggest disadvantage of outsourcing your SOC. This is where choosing the right provider and having the right relationship and agreements with them is vital. Trust in your cybersecurity partner is essential.

A loss of control is just one of the common misconceptions when it comes to outsourcing your SOC: get the facts in our guide.

Potential communication gaps

One possible disadvantage of working with an external SOC is the risk of gaps in communication between the organisation and its cybersecurity partner, which could lead to delays in response times or misunderstandings over priorities. Time zone differences and variations in communication styles could further hinder real time collaboration between the two, as well as create frustration or confusion. These risks can be mitigated with clear SLAs and protocols from the start of the relationship.

Data security/privacy concerns

Outsourcing to an external SOC provider raises concerns about data privacy, regulatory compliance, and where sensitive data is stored and processed. Organisations must ensure that their SOC partner employs robust data privacy practices and that their services are aligned with the organisation’s security requirements.

Overdependence on the SOC partner

Using an external SOC provider creates a reliance on the provider’s expertise, responsiveness, and service continuity. A poorly performing provider could leave businesses vulnerable while relying too heavily on the partner might limit the organisation’s ability to respond to cybersecurity challenges on its own. On top of that, a restrictive agreement could hinder the organisation’s flexibility in adapting to emerging threats or new technologies. To mitigate this, it’s vital to establish clear expectations and maintain some internal cybersecurity expertise to ensure responsiveness and adaptability.

Upfront effort to onboard

Onboarding an outsourced SOC involves aligning the provider with the organisation’s security needs, systems and processes. This requires careful planning and coordination from the start, including  defining expectations on both sides, integration of tools and practices, and establishing clear communication channels. Although time consuming, the effort invested upfront pays dividends in the long term.

SOC variable service quality

Not all outsourced SOC providers offer the same level of service and the quality can vary significantly. Some may not have the necessary expertise, responsiveness or threat intelligence required while others might not have an understanding of your business needs, which could limit their ability to ensure compliance or offer bespoke security solutions. Some providers offer standard, one-size-fits-all packages, with very limited customisation options which may not fit with your organisation’s unique needs (industry, processes, budget, existing infrastructure). Others may struggle to integrate with your existing systems.

To ensure the best fit and to get the most of your SOC investment, it’s essential to choose a provider which offers flexible, customised solutions, like Talanos, which tailors its services to meet specific client needs.  

Pros and Cons of In-House & Outsourced SOCs at a glance

When weighing up the benefits of outsourcing vs. maintaining an in-house SOC, businesses must take into account cost, expertise, scalability, and control. 

	In-House SOC	Outsourced SOC
Control	Full control over operations and security tools	Requires trust in provider, but SLAs and dashboards offer transparency
Cost	High upfront investment in tools, staff, and infrastructure	Predictable subscription pricing with no capital expenses
Expertise	Requires in-house hiring and continuous training	Access to specialised experts across disciplines
Coverage	Challenging to maintain 24/7 without shift-based staffing	24/7 monitoring as standard
Scalability	Scaling requires additional infrastructure and personnel	Easily scalable up or down with flexible service models
Time to Deploy	Longer setup time and procurement cycles	Rapid deployment with existing tools and processes

 

By outsourcing their SOC, business and technology leaders offload the burden of the day-to-day management of a SOC while leaving managed detection and response threats to cybersecurity professionals with security expertise. Outsourced SOCs offer significant cost savings by eliminating the need for in-house recruitment, training, and infrastructure while providing 24/7 monitoring and access to expert cybersecurity professionals. 

Organisations which have chosen Talanos as their managed SOC partner , gain not just expert threat detection but real-time threat neutralisation, ensuring security without compromise. And unlike some providers with fixed solutions, we offer tailored services, allowing businesses to retain control while benefiting from scalable, always-on protection. 

Our customers trust us to do whatever it takes to keep their systems safe.