Building a SOC: Should You Go In-House or Outsource?

Establishing a Security Operations Center (SOC) has become essential for organizations due to cyber threats' growing complexity and persistence.

However, when it comes to setting up your SOC, an important consideration is whether to handle it in-house or outsource it to a third party. Both approaches come with their benefits but making the right choice can be tough.

Factors such as budget, workforce, technology, and the intricacies of modern threats play a role in this decision-making process.?

In this article, we’ll talk about the advantages and disadvantages of maintaining a SOC internally versus SOC outsourcing one to help you arrive at a painless decision.

The Challenges of Building an In-House SOC

If your choice is setting up an in-house SOC , it might look like the best move on paper, but trust me, the reality is more complicated than you expect.

Here’s a rundown of the challenges you face with in-house SOC:

Resource Limitations

• Lack of Talent: If you don't know how hard it is to find experienced cybersecurity pros, you probably never tried to do that. Well, here comes the worst scenario, it’s even harder to keep them. The competition for skilled security experts is fierce, and hiring the right people can take a lot of time and money. On top of that, most security gurus only stick around for about two years, which means you’re constantly back to square one.
• Budget Pressure: Frankly speaking—building a SOC isn’t cheap at all. You’ve got to invest in tools, technology, and top-notch talent. Of course, it depends on your location and industry, but one thing is for sure, costs can easily become overwhelming, especially for smaller organizations.
• Scaling Issues: As your business grows, so should your SOC. Now, you must hire staff, invest in training, and ramp up infrastructure costs. Keeping up with this kind of growth isn’t always easy, especially if you’re already stretched thin.

Operational Challenges

• Alert Fatigue: The alerts are countless and that is one problem that SOC teams face. Having hundreds of notifications every day makes it simple to ignore the real dangers as your group is busy dealing with false warnings.
• False Positives Boom: False positives represent a big waste of time. Resources are consumed sorting genuine threats from noise adding more workload to your team thus increasing costs as well.
• Tool Integration Struggles: Integrating tools can at times be complicated since they need people with skills who can do all that ‘magic’ and not every team has people with such kind of skills.

Organizational Issues

• Staying Compliant: Keeping up with compliance regulations is no small task. Without a dedicated team focusing on staying compliant, you run the risk of falling behind—and that’s a risk no company wants to take.
• Lack of Collaboration: If your SOC is operating in isolation, it can create a big communication gap between other departments like IT or operations. This lack of collaboration can lead to security gaps and inefficiencies that are tough to manage.
• Proving ROI: One of the hardest parts of running an in-house SOC is showing its value. It’s tough to measure success when things are running smoothly, and many organizations struggle to show the return on investment for their SOC efforts.

While having your SOC can give you more control and allow you to tailor things to your needs, the challenges are significant.

From staffing issues to keeping up with constant alerts and evolving threats, it’s easy to see how quickly things can become overwhelming.

Calculating Your SOC Costs

Building and running your own SOC can drain your resources fast. For a mid-sized company, you’re looking at around $1.95 million a year just to keep things running.

Here’s a breakdown:

• $850,000 goes toward security tools like endpoint protection, Cloud SIEM , and log management systems. These are essential for monitoring your network and keeping threats at bay, but they don’t come cheap.
• $950,000 covers the salaries and benefits for your full-time SOC team. That’s assuming you can even find the talent in today’s competitive cybersecurity market. And remember, staff turnover is a real issue in this field, which means you’ll likely be on the lookout for new hires every couple of years.
• $150,000 is typically spent on operational costs like maintenance, software updates, and other day-to-day expenses. These costs tend to creep up, especially as your infrastructure grows or requires more sophisticated updates.

The total can vary depending on the size of your business, the number of endpoints you need to protect, and any specific compliance regulations you have to meet.

It’s a significant investment, especially for smaller organizations that might not have the budget for it.

That’s why outsourced SOC services can be such a game-changer. For a fraction of the cost, you get access to cutting-edge tools, a skilled team of security experts, and 24/7 protection.

You won’t have to worry about recruitment, retention, or managing the constant influx of alerts. Plus, outsourced providers scale as your business grows, so you’re not stuck investing millions upfront.

It’s a win-win for companies looking for top-tier protection without the hefty price tag.

The Case for Outsourced SOC

Outsourcing your SOC to a third-party provider can be a smart way to bypass the challenges of building one from scratch. When you go the outsourced route, you tap into a dedicated team of security pros, cutting-edge tools, and 24/7 monitoring—without having to pour a fortune into setting it all up yourself.

Here’s why outsourcing might be the better choice for your business:

• Scalability Without the Hassle: As your business expands, so do your security needs. An outsourced SOC is built to scale effortlessly with your growth. No need to stress over hiring extra staff, upgrading hardware, or expanding your infrastructure—your provider takes care of all that.
• It’s flexible whenever you need it, without the usual growing pains that come with scaling up an in-house team. Plus, if you hit a sudden spike in activity or a new threat arises, your outsourced SOC can ramp up instantly without skipping a beat.
• Cost-Effective Security: Setting up your own SOC isn’t just about the initial investment; it’s about the ongoing costs that stack up over time—salaries, software, hardware, and more.
• Outsourcing allows you to choose exactly what you need, whether it’s basic monitoring or full-scale threat detection, and only pay for those services.
• You get the security level that fits your current situation, without paying for more than you need. And because you avoid the costs of maintaining in-house staff, infrastructure, and updates, the long-term savings can be significant.
• Expertise On-Demand: Recruiting and retaining top cybersecurity talent is no easy task. With an outsourced SOC, you instantly get access to a team of experienced professionals who are already experts at detecting and responding to threats.
• They’re familiar with the latest threats, tactics, and vulnerabilities, and are equipped to handle them with precision.
• It’s like having a full security team in place, without the headaches of hiring, training, and retention—plus, they’ve likely seen every attack vector before and know how to stop it fast.

• 24/7 Protection: One of the best parts of outsourcing is knowing that your systems are being monitored around the clock.

• Even when your internal team is off the clock, an outsourced SOC ensures there’s always someone watching over your network, identifying potential threats, and stopping them in their tracks.
• This 24/7 vigilance means you can sleep easy knowing that your organization is covered, no matter when or where a potential attack might strike.

By outsourcing your SOC, you can focus on what you do best—growing your business—while letting the experts handle the security. It’s about having top-notch protection without the stress or massive overhead.

To be honest, if you choose the in-house option to build your SOC, there is a very big chance that you’ll need to address some security paints to SOC as a service company, just to avoid overwhelming stress for your teams.??

Managed SOC by UnderDefense

UnderDefense provides a managed SOC service that fits your budget and gives you confidence in your organization’s security posture. Here’s how our managed SOC service can help you overcome common challenges:

• 24/7 Availability: Our security experts are a click away, ensuring continuous protection for your business.
• Proactive Threat Hunting: We don't just wait for attacks; we actively search for threats, providing context and remediation advice.
• Operational Transparency: Insights into alert-to-fix timelines, threat contexts, and regular reports for full visibility into your security posture.
• Optimized Tooling: Fine-tuned security tools/ reducing alert noise by over 82% and providing a unified view of your security landscape.

With UnderDefense Managed SOC , you can confidently protect your digital assets and maintain compliance while focusing on your core business objectives.

Wrapping Up: Finding the Right Fit

Deciding between building an in-house SOC or outsourcing goes beyond just the budget—it's about aligning with your organization’s broader goals and resources.

If full control and hands-on management are your top priorities, and you have the funds to match, then investing in an in-house SOC could be the right call.

You’ll have the ability to customize every aspect, from security protocols to response strategies. However, for many companies—especially those that are small to mid-sized—outsourcing your SOC to a trusted provider offers a smarter, more scalable solution that balances security with affordability.

By outsourcing, your internal teams can return their attention to your company's core operations while professionals dedicated to 24-hour threat detection and incident response look after your security.

You gain access to the latest technology, experienced analysts, and immediate support, all without the hefty cost of building and maintaining everything in-house.

Whatever path you take, the most crucial part is ensuring your business has the right mix of skilled professionals, cutting-edge tools, and an adaptive security strategy to stay ahead of cyber threats.

Build in-house SOC or outsource SOC: Which one is best? -> Calculate your costs