E-commerce CRO

UK businesses increasingly outsourcing cybersecurity

A recent survey conducted by Logpoint highlights a notable trend among UK businesses: the growing reliance on outsourcing cybersecurity functions. According to the European Cybersecurity Sector 2024 report, which surveyed 1,762 senior decision-makers and influencers, 52% of UK firms currently use third-party services for their security operations. Furthermore, an additional 28% plan to adopt this approach in the near future. This shift is particularly pronounced compared to other European nations; for instance, only 24% of French companies and 27% of German companies are contemplating a move from in-house security to external support.

One of the primary reasons behind this trend is the acute shortage of skilled cybersecurity professionals in the UK. The ISC2 2024 Cybersecurity Workforce Study underscores this issue, revealing that the UK has the largest cybersecurity workforce gap in Europe, which increased by 27.1% last year. Concurrently, the workforce shrank by 4.9% due to layoffs and economic uncertainties. Consequently, businesses are turning to Managed Security Service Providers (MSSPs) to mitigate these gaps in expertise.

The survey indicates that a significant portion of businesses—60%—that rely on MSSPs cite the lack of internal skills and knowledge as their main motivation for outsourcing. Additionally, 48% reported difficulties in finding qualified candidates to meet their security needs. This reflects an industry-wide challenge where demand for skilled professionals far outstrips supply, leaving many organizations vulnerable.

Regulatory compliance is another major factor driving companies toward MSSPs. As accountability increasingly falls on individual board members and senior management, organizations feel pressured to demonstrate compliance with regulations such as GDPR and the NIS2 Directive. Remarkably, 93% of UK firms identified compliance as the leading reason for opting for MSSPs.

Innes Muir, the Regional Manager for MSSPs at Logpoint, emphasizes this shift: “The burden of regulatory compliance, coupled with the onus being placed on individual members of the board and senior management, is driving demand for MSSP services. Engaging a third party not only grants access to the latest technology and skilled experts, but also supports compliance through tailored solutions designed for specific regulations.”

The benefits of engaging MSSPs go beyond compliance assurance. Enhanced overall security, access to specialized expertise, and 24/7 service availability are critical advantages reported by firms. Companies also recognize the financial efficiencies and centralized management that come with outsourcing security operations. Importantly, businesses prioritize predictable pricing models, which assist in transparent financial planning during economically challenging times.

When evaluating potential security solutions, effectiveness in managing security incidents (63%) and demonstrated success (62%) rank as the top criteria for MSSPs, with compliance also being a key consideration (61%). Interestingly, among those handling security in-house, compliance appears third in priority, trailing effectiveness and ease of integration.

As UK firms look to the future, there is a growing interest in integrated solutions from cybersecurity providers. A staggering 94% of surveyed organizations expressed a preference for offerings that align with a flagship platform, showcasing an appetite for comprehensive security services. This trend reflects a desire for solutions that not only meet compliance needs but also streamline monitoring and reporting processes.

The increasing trend of outsourcing cybersecurity operations among UK businesses is a pragmatic response to a challenging landscape marked by a skills gap and stringent compliance requirements. By leveraging the expertise of MSSPs, organizations can enhance their security posture while ensuring adherence to regulatory frameworks.

Businesses should stay informed about these shifts as they adapt to evolving cybersecurity threats and navigate the complexities of compliance. The future may well belong to those who recognize the value of partnerships designed to fortify defenses against the backdrop of an ever-changing landscape.