Managed SOC vs. In-House: What High-Growth Companies Need to Know

Introduction

As cyber threats continue to grow in scale and sophistication, investing in a Security Operations Centre (SOC) has become a non-negotiable requirement for modern businesses.

It is even more critical for high-growth companies, which are always one breach away from losing their momentum and damaging their reputation.

The question at this point isn't whether to invest in SOC, but which option is best.

In this article, we’ll explore the key differences between managed and in-house SOC models, as well as factors fast-growing companies need to consider choosing the right Security Operations Centre.

Understanding SOC: The Foundation of Cybersecurity Operations

SOC (pronounced “sock”) is an acronym for Security Operations Centre. It is a facility or platform, with a dedicated team of cybersecurity specialists that monitor, analyses and responds to cyber threats in real time. According to IBM, this team of IT security experts typically works round the clock, monitoring organizations’ entire IT systems.

This 24/7 approach to monitoring is proactive, often catching threats before they occur or causing significant data loss and disruption.

The core functions of a SOC include:

• Continuous security monitoring
• Early threat detection and analysis
• Rapid incident response
• Asset protection
• Cybersecurity tool maintenance

For high-growth companies, expanding IT infrastructure to meet demand often creates more entry points for malicious actors.

This makes them prime targets for cyberattacks, unless there’s a SOC in place to provide ongoing visibility and threat response.

Comparing the Two SOC Models

SOC objectives remain consistent across industries and use cases; but organizations often choose one of two SOC approaches, depending on their specific needs.

This section will explore the two major models and how they differ.

What is a Managed SOC?

The managed SOC model involves outsourcing security operations to a third-party provider. It is typically subscription-based, where companies pay a monthly fee to a Managed Security Service Provider (MSSP) that delivers predefined SOC functions such as threat monitoring, incident response, and reporting.

These providers often serve multiple clients using standardized services, allowing for affordable and rapid deployment. Some managed SOC providers may offer customizable options, but ultimately, clients have minimal control over tooling, staffing, or workflows.

Adopting a managed SOC approach is suitable for companies looking to scale security without spending additional resources to hire or train specialized staff.

What is an In-House SOC?

As its name implies, an in-house security operations center is built and staffed internally, with the company retaining full control over platforms, focus areas, workflows and data.

In-house SOCs offer complete customization. Security teams can tailor workflows and policies to align with the organization’s specific needs.

Moreover, this approach ensures that sensitive data remains internal, reducing the risk of exposure through third-party integrations.

Enterprises with more resources and complex structures tend to opt for in-house SOCs, not just for ownership reasons, but for ease of collaboration among internal teams.

Key Considerations for High-Growth Companies

We’ve established that SOCs are essential for all organizations, regardless of their size or growth rate. However, deciding on the right model can be challenging.

Factors such as cost, control, scalability and talent availability are key considerations in this decision.

1. Cost Considerations

Building an in-house SOC requires significant upfront investment in tools, training and staffing. But it doesn’t stop there. Technology upgrades also lead to ongoing expenses for the company.

With managed SOCs, however, costs are more predictable as cybersecurity providers typically charge a fixed monthly fee.

Companies must weigh upfront costs against long-term ROI to determine which option is more cost-efficient.

2. Speed of Deployment

Building an in-house SOC from scratch is time-consuming. It can take months to hire talent, integrate, test and deploy required tools.

This causes a delay that fast-growing firms cannot afford. With managed SOCs, organizations benefit from prebuilt playbooks and trusted processes.

3. Control and Customization

In-house SOCs provide full control over security tools and policies, enabling companies to tailor those to their unique needs and compliance requirements.

While they offer less control, managed SOCs offer compensate with proven processes – ideal for companies without internal expertise.

4. Scalability and Flexibility

High-growth companies benefit from the elastic nature of managed SOCs. Providers typically offer tiered services, allowing businesses to scale security capabilities up or down, as required. Advanced security services are considered add-ons, which clients can access for an additional charge.

In-house SOCs are also scalable, if the company can stretch its budget and bandwidth.

5. Talent and Skill Availability

The global cybersecurity talent shortage makes it difficult for companies to recruit skilled SOC analysts quickly.

By outsourcing SOC functions, companies avoid the need to recruit and build a security team from scratch.

6. Threat Visibility and Intelligence

While in-house SOCs provide full access and customization, managed SOCs can offer broader threat intelligence.

Cybersecurity providers draw insights from their diverse client base and global threat intelligence feeds to continuously adapt monitoring and response strategies to hackers’ ever-changing tactics.

The Hybrid SOC: A Strategic Middle Ground

The hybrid SOC combines the strengths of the in-house and managed SOC models for enhanced security.

It is suitable for high-growth companies seeking to balance cost-efficiency with control. By adopting this model, companies can retain control over core security functions, while leveraging the advanced tools, expertise and 24/7 monitoring provided by managed SOCs.

Overall, a hybrid SOC offers flexibility, cost-efficiency, and superior threat intelligence that cannot be achieved by outsourced or in-house models alone.

Choosing the right SOC model

SOC selection is a strategic decision that should reflect current business realities and anticipate future needs.

CISOs and stakeholders must first evaluate the company’s internal capabilities, in terms of budget and talent availability. These two factors are crucial and will guide the rest of the process.

However, we recommend:

• An internal SOC for enterprises with a significant budget to invest in tools upfront and hire talent.
• A hybrid or managed SOC for fast-growing small to mid-sized businesses. These models provide companies with affordable access to high-quality, expert driven security intelligence.