Outsourcing cybersecurity: How SMBs can make smart moves

Outsourcing cybersecurity can be a practical and affordable option. It allows small businesses to get the protection they need without straining their budgets, freeing up time and resources to focus on core operations.

76% of SMBs lack the in-house skills to properly address security issues, increasing demand for the expertise and services of MSPs, and 78% are concerned that a severe cyberattack could drive them out of operation, according to ConnectWise.

What you can outsource

SMBs can outsource a range of cybersecurity functions to external experts. Common services include:

• Managed security service providers (MSSPs): Handle tasks such as threat monitoring, firewall management, and real-time alerts.
• Security Operations Center (SOC) as a Service: Offers around-the-clock surveillance and real-time response to cyber threats.
• Penetration testing and vulnerability assessments: Identify and address system weaknesses before cybercriminals do.
• Incident response and recovery planning: Ensure your business is prepared to contain, investigate, and recover from breaches.
• Compliance management: Help you stay aligned with regulations like HIPAA, GDPR, or PCI DSS, reducing legal and financial liabilities.

How to find budget-friendly cybersecurity providers

When selecting a cybersecurity provider on a budget, prioritize vendors with proven experience supporting small businesses or startups. These partners understand limited resources and can tailor services accordingly. Look for tiered pricing and flexible contract terms, so you only pay for what you truly need.

Transparency is key. Your provider should offer clear service level agreements (SLAs), real-time alerting, and easy-to-understand reporting dashboards.

Finally, verify their credibility through certifications like SOC 2 or ISO 27001, and ask for client references to verify their track record.

Potential pitfalls of outsourcing cybersecurity

Many SMBs assume that once they hire a cybersecurity provider, all their risks are fully managed. However, outsourcing cybersecurity also comes with trade-offs. Here are a few risks to consider:

Lack of control: When an external vendor manages your security, you may have limited visibility into day-to-day operations or incident response times. This issue is often compounded by poor communication, especially if the provider operates in a different time zone or speaks a different language.

Hidden costs: The price you initially agree on may rise unexpectedly. For example, if the provider discovers system vulnerabilities that require hardware upgrades or data migrations, you could face significant additional charges, even if you had only signed off on their base service rates.

Biased decision-making: Some providers apply a one-size-fits-all approach, treating all clients similarly. Without influence over their internal priorities, your business may not receive tailored solutions or efficient use of resources.

Slow response times: Because providers typically serve multiple clients, your issues may not be prioritized, especially during widespread threats or crises. If their team is already stretched thin, they may lack the capacity to respond quickly to your organization’s specific needs.

What not to outsource

While outsourcing cybersecurity can offer critical support, there are certain responsibilities your business should always keep in-house. These areas are too strategic—or too sensitive—to delegate fully to third parties.

1. Governance and compliance accountability

Third parties can assist with audits or regulatory tasks, but legal responsibility stays with you. Always ensure your company maintains oversight of compliance programs, documentation, and reporting.

2. Identity and access management

Outsourcing may help maintain systems, but your business must retain control over who has access to what, especially when it comes to sensitive data or administrative privileges.

3. Crisis response and decision-making

During an incident, vendors can execute containment and recovery, but only your leadership can make key decisions, such as public disclosures or operational shutdowns. Don’t give up that authority.

4. Data ownership and infrastructure control

Never surrender full administrative access to your data or core systems. Even if a vendor manages backups or platforms, you should maintain the keys, including credentials, encryption policies, and recovery processes.

Blindly trusting a third-party provider without proper oversight introduces security risks that could outweigh the benefits. Treat third parties as allies, not owners, of your cybersecurity.