What is SOC outsourcing and what does that typically include?
A Security Operations Centre (SOC) is responsible for detecting, preventing, analysing and responding to cybersecurity threats and incidents. An organisation may choose to operate its SOC in-house or to outsource it to a third party provider (Managed Security Service Provider (MSSP). The MSSP monitors the organisation’s systems and applications, detecting and assessing threats as well as responding to incidents on behalf of the organisation to ensure that sensitive data is protected and the organisation remains compliant with regulations and remains operational with no business disruption or downtime.
The first thing to note is that not all outsourced SOCs are created equal! However, a typical MSSP will provide a range of services, including:
24/7 Monitoring: Continuous real-time monitoring using the latest security tools and SIEM solutions to identify potential threats and vulnerabilities with advanced detection services.
Threat Intelligence: The ability to leverage intelligence gathered from external sources and apply it to your internal environment, providing the benefit of being part of a broader ecosystem of shared knowledge and insights.
Incident response: Both management and execution of rapid and efficient responses to security breaches and mitigation of potential risks.
Compliance management: Assisting with emerging regulatory requirements like DORA or the latest versions of ISOs.
Log management and reporting: Data analysis to identify potential security issues.
Key factors that influence the cost of outsourcing
Building your own SOC in-house can not only feel daunting for a business, but can also be extremely expensive as it requires investment in skilled professionals, tools and technology. Outsourcing your SOC can be highly beneficial for an organisation on a number of levels, but it’s vital to understand the factors that influence the cost structure when considering this route.
Here are some of the key elements to bear in mind:
Scope of service: MSSPs offer different levels of SOC services, which range from basic monitoring to full Managed Detection and Response (MDR) services, with appropriate cost variations.
Organisation size and complexity: Larger businesses (or those with more complex infrastructures) may need more resources than smaller ones. Those with higher regulatory or compliance requirements with stricter security measures will incur greater costs.
Monitoring and reporting: Real-time monitoring and constant reporting usually come with added costs.
Location: The location of the third party provider may have an influence on support time zones, data sovereignty requirements, and staff costs.
Technology Stack: The number and type of technologies used will heavily influence the cost - advanced tools for automation, alert management and incident response will inevitably be more expensive. Similarly, costs will rise if an organisation has particular compliance requirements or needs additional solutions such as SIEM (Security Information and Event Management) or EDR (Endpoint Detection and Response).
Expertise: Cybersecurity experts and experienced skilled analysts will typically command higher salaries than IT generalists or more junior staff.
Number of incidents: The amount of resources an MSSP needs to allocate to an organisation will depend on the volume of incidents the organisation usually experiences.
Incident response times: MSSPs offering faster response times will usually charge more for their services.
Service Level Agreements (SLAs): Usually the more comprehensive the service, the higher the cost (24/7 monitoring, threat intelligence, incident management).
Tailored solutions: Customisation and flexibility may add to costs if the MSSP has a fixed service offering.
Integration with an organisation’s existing infrastructure may need additional investment.
If you're weighing up these points, it's also worth asking whether the time is right to outsource. We explore five key signs that it might be time to take that step in this related blog.
Common pricing models for SOC outsourcing
When it comes to comparing MSSPs, there are various pricing models to consider. Understanding exactly what is included in a service and which costs are fixed and variable is crucial for choosing the right option for your organisation and staying inline with your security requirements and budget.
Common outsourced SOC pricing models include:
Flat-Rate (or subscription-based) pricing: Organisations pay a fixed monthly or annual fee to cover a predetermined set of SOC services, which makes budgeting more predictable.
Device/user-based pricing: Costs are based on the number of devices or users being monitored by the SOC. This model can scale as the organisation grows which can be a more affordable option for smaller businesses.
Usage based pricing: Costs are calculated based on the volume of data processed or the number of incidents handled by the SOC. Organisations with fluctuating security requirements may find this model beneficial, although costs may vary.
Tiered pricing: Pricing is structured in tiers according to a specific level of service protection and support provided by the SOC. The system enables organisations to select the most appropriate package for their current needs and budget. Organisations can start with lower cost packages (e.g. basic monitoring) and move up to more advanced services (such as threat hunting or incident response) as they scale up.
Customised pricing: Some MSSPs offer bespoke pricing based on the unique requirements and risk profile of an organisation, particularly for those with unusual security needs or complex environments.
While cost is a key consideration, it’s also important to separate fact from fiction—many businesses still hold onto outdated assumptions about SOC outsourcing. We address some of the most common misconceptions about outsourcing your SOC in this blog post.
Typical SOC Costs:
The cost of outsourcing a SOC depends on the factors above, again noting that not all SOCs are the same! An approximate price guide can help with planning. An organisation can expect to pay for coverage of its entire estate::
Small SOC for organisations with a user base of up to 100: £50-80,000 per year
Medium SOC for organisations with a user base 100-900: £80-140,000 per year
Large SOC for organisations with a user base of around 1000+: £150,000+
Cost comparisons: In-house SOC vs. outsourced SOC
The decision to build an in-house SOC or outsource the function requires a detailed cost analysis. Here are the key costs to consider:
In-house SOC Costs:
Initial investment: Significant capital investment is required in hardware (servers, storage, networking), software (SIEM licences, threat detection tools, endpoint protection) and facilities (a secure physical space, rent, utilities and physical security e.g. (access control and surveillance systems).
Ongoing maintenance: Subscriptions costs or maintenance contracts for essential security tools.
Staff and training: Competitive salaries and benefits for cybersecurity specialists (e.g. analysts, SOC managers, incident responders) amid a global shortage of cyber talent. Further costs for recruitment, onboarding, ongoing training, and certifications.
Operational: Expenses for compliance monitoring, audits, certifications and utility costs for operating servers and workstations.
Scalability: As the organisation grows or the threat landscape evolves, there will be additional expenses for new recruits, system upgrades and more infrastructure investments.
Outsourced SOC Costs:
Initial investment: There is no significant capital expenditure for the organisation as the provider is responsible for hardware, software and infrastructure. Many MSSPs include the cost of essential tools (e.g. monitoring platforms, SIEM) in their fees, eliminating maintenance costs for the organisation.
Ongoing costs: The organisation pays for the SOC services according to the agreed pricing model - fixed subscription, device/user-based, tiered or customised. Depending on the SLA, some MSSPs may charge extra for services beyond the agreed service levels.
Staff and Training: Outsourcing eliminates internal recruitment and training costs, as the provider employs 24/7 cybersecurity professionals in specialised roles like threat hunters and incident responders, reducing the need for internal security staff.
Reduced Risk and Compliance Costs: An outsourced SOC ensures compliance with regulatory requirements while minimising data breach risks and associated costs. By responding quickly to incidents, it reduces downtime and boosts employee productivity. Specialist knowledge and technology enable faster, more efficient threat detection, lowering the likelihood of costly breaches. Additionally, outsourcing 24/7 SOC services can reduce insurance premiums by meeting insurer requirements.
Scalability and Flexibility: Outsourcing provides access to advanced tools and technologies without the capital expenditure of purchasing SIEM or other security tools. Security needs can be easily adjusted through subscription plan modifications, avoiding major infrastructure upgrades.
For many organisations, the cost of an in-house SOC in terms of both time and money is simply impractical, requiring sizable investment in technology, recruitment and training. Outsourcing provides a cost-effective alternative with access to advanced tools and expertise.
Examine the pros and cons of each model.
The ROI and Value of an Outsourced SOC
How do you measure the ROI and value from investing in an outsourced SOC?
The potential return goes far beyond the initial financial savings. The value of an organisation's data is crucial when evaluating ROI as it directly impacts business decisions, customer trust, and compliance. Outsourcing a SOC to an expert MSSP ensures robust protection of this invaluable asset, reducing the risk of breaches and financial losses as well as enabling faster threat detection and reduced operational overheads.
Demonstrating the ROI and effectiveness of an outsourced SOC can be tricky, especially when systems are running smoothly and no major incidents occur. However, useful metrics to demonstrate the outsourced SOC as an essential, value-driving asset include faster Mean Time to Detect (MTTD), reduced Mean Time to Contain (MTTC), reduction of security incidents, a reduced risk of business disruption and productivity levels, as well as improved compliance. By tracking these, an organisation can demonstrate not just cost savings but also enhanced security, productivity and business continuity.
Talanos has successfully implemented a strategy to capitalise SIEM licenses, reducing annual operational expenditure budgets by a third. Customers can capitalise up to 100% of the licence cost and project fees, as the collected and organised security data is considered at least as valuable, if not more valuable, than the actual spend on the licence. The project fees can also be capitalised due to the valuable documented designs, policies, battlecards, and other artefacts generated. These deliverables retain long-term value for the customer, even if the managed service is suspended.
Conclusion
Choosing between an in-house SOC and outsourcing goes beyond budget considerations; it’s about aligning with your organisation’s overall strategic goals, security requirements and available resources.
When considering the cost of outsourcing a SOC, it’s essential to evaluate not just the initial cost but also the long-term value delivered. At what cost is your peace of mind?
A strong security posture is dependent on selecting the right SOC partner—one whose expertise and approach align with your business goals and risk profile. Read more in our guide to choosing the right SOC partner.
Talanos works with business leaders who understand the critical value of the data they hold, and who demand uncompromising cybersecurity to safeguard their operations and reputation. We ensure a strong ROI by combining advanced detection, response, and containment - all executed within 15 minutes. Our 24/7 monitoring, expert-led threat mitigation and tailored security strategies ensure your business remains resilient in an evolving cyber landscape. We’ll reduce your downtime, prevent breaches and improve compliance, ultimately protecting your reputation and bottom line. With us, security isn’t just a service - it’s personal.
