In-house vs. external cybersecurity teams: Pros & cons By: Kiana Seitz August 13, 2024 Estimated reading time: 7 minutes. Modern businesses face more challenges than ever when managing their cybersecurity strength level. The rise of artificial intelligence, machine learning, and fully integrated business ecosystems has contributed to IT sprawl, creating additional avenues for hackers to exploit. To keep pace, businesses need cybersecurity talent, and lots of it. However, cultivating a dynamic in-house cybersecurity team can be costly, time-consuming, and outright frustrating. That’s not to say the in-house approach is bad; it just isn’t for everyone. That’s why many businesses are turning to external cybersecurity teams to meet their needs. Here’s an overview of the pros and cons of in-house vs. external cybersecurity teams. In-house vs. external cybersecurity teams As the name suggests, an in-house cybersecurity team is composed of your own employees. These are the staff members you’ve hired, trained, and nurtured. Conversely, an external team is one managed by a third-party services provider. While this group of professionals supports your organization and collaborates with your staff, they aren’t your employees. Under the in-house model, you oversee everything from benefits administration to salary and performance. While you’ll enjoy some performance oversight with the external approach, the services provider deals with HR issues, pay, benefits, and other complexities. You pay a fixed fee based on the scope and scale of their services. There’s also a third option, which is a hybrid approach. For instance, you may decide to maintain an internal information technology team but outsource some or all of your cybersecurity responsibilities. Several important factors will influence your decision between an in-house and external cybersecurity team. According to James Velco, President and CIO of TechNoir CIO Solutions, compliance and regulatory requirements are a driving factor when deciding whether to handle cybersecurity internally or externally. Industries like healthcare and finance are subject to particularly strict data security rules, which makes working with an outside compliance firm especially appealing. “For many businesses, hiring and retaining high-quality compliance specialists is cost-prohibitive and tedious,” says Velco. “Partnering with an external team that handles compliance can be a cost-saving move that simultaneously enhances an organization’s compliance posture.” Pros of in-house cybersecurity teams Using your own cybersecurity team offers several advantages, including hands-on oversight, control, and company alignment. You can also customize your staff's configuration and workflow to align with business needs. Since everyone works directly for your business, you’ll have a clear view of your team’s day-to-day operations and processes. You won’t rely on insights from a provider or go-between, meaning it may be easier to identify issues or concerns. Additionally, you can reconfigure the managerial hierarchy based on shifting company needs. For example, if you have IT personnel who are cross-trained in cybersecurity and other disciplines, you can relocate them as new projects enter the pipeline. Cons of in-house cybersecurity teams Three major hurdles are associated with managing cybersecurity internally: cost, recruitment, and continuous training. The cost factor is the most obvious, as you’ll incur a range of expenses while building and sustaining an in-house staff of cybersecurity experts. Some of these costs include: Hiring Recruiting Onboarding Training Pay Benefits Recruiting can represent a significant challenge on its own. Finding the talent you need can be difficult even if you’ve decided that the cost of an in-house approach is worthwhile. There’s currently a global shortage of nearly four million cybersecurity professionals. The good news is you can nurture your own talent by partnering with training providers like Lighthouse Labs. We provide reskilling and upskilling solutions for small companies, enterprises, and individuals. Fill the gaps in your talent pool and cultivate loyalty toward your brand by investing in the growth of your team. Subscribe to our newsletter and stay in the loop with the latest cyber updates and community events at Lighthouse Labs. Sign Up Pros of external cybersecurity teams There are many advantages of outsourcing cybersecurity. The most notable involves scalability. A reputable provider can scale the scope of their support to align with the size and needs of your business. They’ll have the resources, talent, and management infrastructure necessary to grow with your company. Moreover, you can access world-class cybersecurity expertise on demand. If you venture out into the talent pool to build an internal team, you’ll have to contend with many other businesses and may end up with subpar talent. A quality provider can connect you with a top-notch workforce that has the experience and certifications to bolster your cybersecurity posture. Through outsourcing, you can also enjoy a greater level of cost-effectiveness. Maintaining an internal team can involve unpredictable expenses, such as overtime, training, recruiting, and onboarding. With an external approach, you’ll pay a fixed fee based on the services you use. For example, the median salary for a cybersecurity professional is approximately $120,000 annually, while hiring a cybersecurity company costs between $10,000 - $50,000 on average. Of course, your specific costs will vary based on your company's size and the project's scope. By eliminating the unpredictability of your IT costs, you can free up capital for other endeavours and better support your long-term growth. Cons of external cybersecurity teams There are a few potential downsides to outsourcing. One is less potential for customization. While some providers tailor their services to align with the needs of each client, others offer more of a plug-and-play set of solutions. Another consideration is that you’ll be reliant on an external entity to protect your data. If you have a great partner, this can give you peace of mind. However, it can be a cause for concern if you aren’t confident in your provider’s abilities and responsiveness. According to Velco, it’s also important to familiarise yourself with certain misconceptions surrounding cybersecurity outsourcing. “There’s a common myth that outsourcing cybersecurity means surrendering control over your systems and data,” he says. “In reality, the best third-party providers follow stringent security protocols and give you full visibility into their operations by leveraging a collaborative approach. After all, it’s your data.” While you’ll give up some oversight, it’s not a drastic change — at least it shouldn’t be. Again, it all comes down to choosing the right provider. The best way to do so is to set clear expectations from day one so prospective partners understand what you need in terms of communication, collaboration, and reporting. Comparative analysis Factors In-house team External team Cost Higher initial cost due to hiring, training, and salaries of full-time employees Lower initial cost as services are outsourced Expertise Direct access to internal resources and organizational knowledge Access to a wider range of specialized skills Scalability Limited scalability, as resources are finite Higher scalability, as external teams can adjust based on current needs Control Full control over policies, procedures, and implementation Less direct control Customization Altering the composition of the team requires cross-training, upskilling, or hiring Providers can customize the team to align with your evolving needs Continuous Training Training is your responsibility, which represents an added cost The provider handles all training and certification maintenance Key considerations for decision making As you weigh the pros and cons of these two cybersecurity strategies, consider your business's size, current growth trajectory, and the industry you operate in. Also, be mindful of the regulatory requirements under which your company is governed and make sure prospective providers are well-versed in those provisions. Velco believes that emerging technologies like machine learning, AI, and Internet of Things (IoT) devices are shaping companies’ decisions. For instance, modern manufacturing facilities are witnessing the convergence of IT, production equipment, and edge devices, which requires specialized cybersecurity skills that encompass both IT and industrial control systems. “Cultivating this sort of niche talent internally can be cost-prohibitive and time-consuming,” he elaborates. “In response, many businesses on the cutting edge of end-to-end integration are leaning toward outsourcing to meet their evolving cybersecurity needs.” Future trends in cybersecurity team structures Emerging tech like AI and machine learning should also play a role in your decision-making process. If you don’t have the IT bandwidth to maintain the security of these and other innovative technologies, outsourcing may be the more practical option for your business. You should also be conscious of looming threats that may be just over the horizon and assess whether you can handle them internally. Regarding such threats, Velco says, “Your business must stay super vigilant, as cyber threats are continuously evolving and becoming more sophisticated. Look beyond security and explore additional layers of protection, such as obtaining a solid cyber insurance policy, which can cover costs from incidents like data breaches or ransomware attacks.” Roughly 60% of small businesses close their doors within six months of a cyberattack. An insurance policy can alleviate the burdensome costs of an attack and ensure that you have the resources needed to respond rapidly to a breach. Empower your internal cybersecurity team Outsourcing represents a potential cost-saving move that grants businesses access to a diverse assortment of talent. However, many companies prefer the control and direct oversight possible when hiring an internal team. Regardless of which route you choose, vigilance is paramount as you protect your organization and its digital assets. If you rely on in-house staff to achieve this goal, you must equip them with the skills to succeed. Lighthouse Labs offers off-the-shelf and bespoke training solutions for small businesses to enterprises, allowing you to upskill internal employees and build your cybersecurity team. Programs can be tailored to your business’s specific needs, including length, content covered, and practical projects. Empower your in-house cybersecurity team with the advanced skills and knowledge they need to protect your business through our tailored upskilling course. Learn more FAQs What is the difference between in-house and outsourced security services? Outsourced security involves partnering with a third-party provider, who will assume responsibility for protecting your data and digital infrastructure. They handle the day-to-day duties along with any major cybersecurity initiatives, freeing up your internal team to tackle other projects. Under the in-house model, you’re responsible for hiring personnel, making sure they have the proper certifications, and maintaining security. What is the difference between internal and external cyberattacks? An internal cyber attack originates from behind your firewalls or within your infrastructure. It may involve malicious actions by a disgruntled individual or a simple mistake. For example, one of your employees could fall prey to a phishing scam and give their credentials up to a bad actor. In this scenario, the hacker could attack your business from the inside, using the employee’s login information to bypass security. During an external attack, criminals breach or circumvent your security provisions. They aren’t granted access via stolen credentials or insider assistance. What is in-house cybersecurity? In-house cybersecurity is the process of handling your own digital security needs via employees who work directly for your company. Instead of outsourcing, you hire and maintain a team of IT professionals who specialize in processes like threat mitigation, setting up and maintaining firewalls, and breach detection.