Cyber threats are growing in both complexity and volume. Every company, whether a fast-paced startup or a large enterprise, knows that protecting digital assets is no longer optional. But here’s the million-dollar question: Managed security services vs. hiring an in-house team – which one makes more sense, especially when it comes to cost?
Most business owners find themselves stuck between two choices. Should they build a full-time in-house cybersecurity team, or outsource their security needs to a managed service provider? Both options offer advantages. However, they also come with significant trade-offs. In this blog, we’ll break down the real numbers, hidden costs, and practical considerations to help you make an informed, budget-smart decision.
Managed Security Services vs Hiring an In-House Team: Which is Cost-Effective?
The debate between managed security services and hiring an in-house team has been ongoing for years. At first glance, it might seem cheaper to hire your team and maintain full control. However, once you factor in everything, from salaries and benefits to tools, training, and turnover, you might be surprised at how quickly the costs add up. So, let’s explore the differences in detail.
1. Upfront and Ongoing Costs
| Cost Category | In-House Team (SAR/year) | Managed Services (SOC-as-a-Service; SAR/year) |
| Security Analyst (x2 at SAR 125K yr) | ~ 250,000 | _ |
| Security Engineer or Senior Analyst | ~ 150,000 | _ |
| Tools & Software Licenses | ~ 200,000 | Included |
| Recruitment, Training & Benefits | ~ 100,000 | Included |
| SOC Monitoring, Detection & Response | _ | 600,000 ( 50,000 SAR/mo entry-level upward) |
| Total Annual Cost | 700,000 SAR | 600,000 |
So, outsourcing provides nearly SAR 100,000 in yearly savings, not to mention the reduced administrative load. However, it is just an estimated amount as it varies according to the company’s profile and in-house team members.
2. Talent Acquisition and Retention
The shortage of cybersecurity talent is a fact. It will take a long time before the right experts can be recruited, and it will take longer before they can be retained, and this costs more money. Besides, cybersecurity experts are in short supply, which increases the cost of labor and employee poaching threats.
Managed service providers, on the other hand, do have established professionals in place. You are not only receiving a single individual, you are also acquiring access to a whole team of different specialists with numerous years of experience. Besides, you will not be in the churn cycle or recruitment hell every other day. Accordingly, having MSPs fill your talent gap beats using them because it does so more quickly, but also offers a more stable, expert-intensive service.
3. Response Time and Coverage
Suppose you have a 35-person in-house workforce. Is it possible that they can track your environment all the time? What happens on weekends, holidays, or impromptu days off? Managed service providers, on the other hand, do not close. They have Security Operations Centers (SOCs) that are always awake.
The frequency of checks and quick action can prove critical in some cases between a blocked attack and an all-out breach. Security incidents do not take a break, so 24-hour coverage is more important now than ever. In this way, MSPs provide a powerful boost to companies that appreciate persistence in their vigilance.
4. Tools and Technology
People are not the only part of cybersecurity. You must have the top range of tools: SIEM solutions, endpoint security, vulnerability scanners, firewalls, etc. The expense of installing and operating them in-house can be up to half a million dollars a year.
These tools, however, are already implemented with managed providers, as well as the licenses and updates, and integration experience. More to the point, you also enjoy regular updates and do not need to pay more. Concisely, the technology is always up to date, and best of all, you do not need to lift a finger.
5. Compliance and Reporting
In regulated industries like finance, healthcare, or critical infrastructure, compliance isn’t optional. Managed service providers typically stay up to date with ISO, NCA, GDPR, and other compliance frameworks.
While an in-house team can manage compliance, it often requires hiring additional officers or consultants, adding another layer of cost and risk. Besides, MSPs have templates, tools, and workflows designed specifically to keep businesses audit-ready year-round.
Hidden Costs You Might Overlook
When thinking about managed security services vs hiring an in-house team, don’t ignore the hidden costs of going in-house:
- Downtime from sick leaves, holidays, or turnover
- Moreover, turnover costs, including re-training and recruitment delays
- Human error, especially when staff lack advanced expertise
- Lastly, security gaps, due to limited access to threat intelligence
Meanwhile, managed services offer service-level agreements (SLAs), regular audits, automatic upgrades, and expert support. That stability alone is worth a lot.
Mid-Sized Business in Riyadh
Let’s imagine a mid-sized business in Riyadh with 100 employees. If they go the in-house route, they’ll likely spend over SAR 1,130,000 annually. But with a managed provider, the entire cybersecurity operation can be outsourced for SAR 600,000, less than half the price. So, that’s not just savings. It’s a smarter allocation.
Who Should Choose What?
While managed services make financial sense for most small to mid-sized businesses, larger enterprises might consider hybrid models. For example, if you already have a solid IT team, an MSP can fill the gaps, like 24/7 SOC coverage or compliance support.
Therefore, managed security services vs hiring an in-house team is not a one-size-fits-all situation. Yet, cost-wise, managed services usually win the match.
Conclusion
When weighing managed security services vs hiring an in-house team, it becomes clear: managed services are more cost-effective, scalable, and efficient, especially for businesses without deep security resources.
You get top-tier talent, better tools, 24/7 protection, and guaranteed compliance. Meanwhile, your internal team can focus on innovation, not stress over every security alert. So, why carry the full burden of cybersecurity alone? So, with the right managed provider, you get peace of mind, better coverage, and more breathing room in your budget.
Frequently Asked Questions
– Can I start with a managed service and switch to in-house later?
Yes, absolutely. Many businesses begin with managed services for quick protection, then build in-house capabilities gradually.
– Are managed security services customizable?
Yes. Most providers offer packages based on your size, industry, and security maturity level. You can scale up or down anytime.
– Will outsourcing compromise data privacy?
Not if you choose a credible provider. Therefore, look for ISO-certified firms that clearly outline their data handling and compliance practices in the SLA.
