Internal or Third-Party IT: Which is Right for Your Budget, Really?
With cyberattacks splashed across headlines on a daily basis, it’s no surprise that the spending on cybersecurity products and services is on the rise. In fact, Gartner’s IT Key Metrics Report 2019 shows that security spending is expected to grow from $106.6 billion in 2019 to $151.2 billion in 2023.
As with many core businesses functions, cybersecurity often requires a substantial investment and, therefore, needs space on your budget. As cyber threats evolve and become more difficult to mitigate, IT experts are not only tasked with keeping the organization data safe but to do so on a limited budget. So, how do IT leaders know which route to take when it comes to building out their IT team and keeping cybersecurity threats at bay? Let’s find out.
How Much Should You Be Spending on Cybersecurity?
Organizations that do not invest in a robust information security management program are at a risk of dealing with costly cyberattacks—the average of which globally is $4 million—so it is paramount that a robust information security program is implemented.
Although, we know that whether it’s the cost of a device or the cost of equipping the IT department to manage it, building, implementing, and managing a robust information security management program can be expensive, and there really isn’t a one-size-fits-all security budget. Instead, it’s estimated that what organizations currently pay for cybersecurity varies significantly, ranging from 5.6 percent up to 20 percent of the company’s total IT spending.
So, how do you determine how much your team needs to a lot to the cybersecurity budget? There’s a few factors to take into account, but first, you’ll need to determine if you’ll be working with a third-party or if you’ll expand your internal IT team.
Internal IT Vs. Third-Party IT Teams
There’s no debate on whether you need a robust information security management program or not, but the question that does matters is whether you need an internal IT team or a third-party partner to build, implement, and manage it.
Internal IT Team
On one hand, building an internal IT team offers the greatest degree of control over cybersecurity operations tailored to the organization’s needs. It also provides the foundation for building comprehensive security, threat, and incident response capability.
However, building an internal IT team can be costly. For example, an organization brings on a new employee, the initial costs can take a significant bite out of a company’s budget. From hiring and onboarding costs, employee wages, and turnover costs, all this can take a toll on business spending. In addition to this, the cybersecurity industry is experiencing an extreme shortage of cybersecurity professionals, and the available cybersecurity talent on the job market is scarce. So, for IT leaders looking to add entry-level and seasoned cybersecurity professionals to their internal IT team, this will be a difficult obstacle to overcome.
Third-Party IT Team
On the other hand, partnering with a third-party can be extremely beneficial for those who need an IT team for a certain project or need to hire a temporary provider to meet specific deadlines, as recruiting a third-party vendor may cut down expenses when compared to internal IT hiring. For instance, a technical vendor can provide the customer with a need’s assessment, then create a workable plan that is in-line with the client’s budget, development timelines, and overall company goals.
Moreover, when it comes to partnering with a third-party cybersecurity provider, all of your costs are inclusive. The third-party is responsible for analyzing network alerts for potential threats, reporting those that may be harmful, and often times, providing remediation advice or implementing remediation solutions. Once the third-party has fully integrated with your business, it takes overall operations and it’s accountable for the overall management and oversight of your cybersecurity program.
Which is Right for You?
For organizations that are planning to build a sustainable, robust information security program that has the ability to scale in our ever-changing threat landscape, it’s likely that you’ll find partnering with a third-party provider to be the most cost-effective solution.
However, as with many cybersecurity decisions, the right way to approach your decision is to first identify the areas in your IT department that need improvement, and then determine if which partnership would best suit your unique needs. You might decide that you can strike a balance between managing cybersecurity functions in-house and partnering with a third-party like ArmorPoint. You might decide keeping your team internal is the best option. Or, you might decide that you’ll need to outsource your IT department entirely.
Whether it’s your first time looking into a third-party partner for your IT needs or you’re looking to make a switch to a new partner, ArmorPoint is here to help.
Are you ready to improve your cybersecurity? Contact us today to get started.