Outsourced vs In-House SOC: Which Is Right for You? 

Online attacks are no longer a once-in-a-while event. They happen every day, and they target companies of all sizes. Microsoft reports detecting over 600 million cyber threats daily, encompassing phishing, ransomware, and identity attacks. 

Some attacks try to steal money. Others aim to steal information. And many go unnoticed until it’s too late. That’s where a security team or Security Operations Center (SOC) comes in—one that can spot and stop problems before they spread. 

But now comes the real decision: should you build your team to monitor threats or get help from an outside service? Let’s explore both paths and help you determine what makes sense for your business. 

What is an In-House SOC? 

With an in-house setup, you hire staff, buy tools, and run everything yourself. This gives you complete control. You decide how things work, who gets access, and how you respond. 

But it also requires more time and effort. You need a team available 24/7, the right software to detect threats, and an ongoing time and budget to maintain and update your systems.  

It works well for huge companies with dedicated IT teams. For others, it can quickly turn into more than they can manage. 

What is SOC as a Service? 

SOC as a Service—also called SOCaaS—or Outsourced SOC, means hiring a company to monitor your systems for any signs of trouble. The company will catch vulnerabilities, send alerts, and respond to threats in real time. 

Instead of hiring a team of security specialists and buying all the tools, you “rent” the service. You remain in charge of your systems, but someone else watches the threats.  

This setup usually includes:  

• Identify and flag potential threats. 

• Meeting Data Security Standards. 

• Investigating past security incidents. 

• Detailed reports showing the vulnerabilities found and fixed.  

• 24/7 monitoring and support to detect and respond to cyber threats. 

Outsourcing a Security Operations Center (SOC) is ideal for companies without a dedicated security team, those operating remotely or across time zones, and high-stakes industries like finance, healthcare, or legal, where data protection is critical. It also suits growing businesses needing fast, reliable security without building an in-house team.  

Even large enterprises often use SOC-as-a-Service (SOCaaS) as a hybrid model, supplementing their internal SOC or outsourcing specific functions. 

Comparing Outsourced vs In-House SOC Deployment 

Here’s a quick comparison to help you see the difference. 

Parameter	In-House SOC	Outsourced SOC (SOCaaS)
Setup Cost	Low–pay as you go model	The in-house team manages it
Response Time	May vary based on staff availability	Around-the-clock support
Skill Level	Depends on who you hire	Access to experienced specialists
Scalability	Hard to expand quickly	Easy to scale up as you grow
Daily Oversight	Full control, full responsibility	Shared responsibility
Compliance Help	In-house team manages it	Often included with the service

Why Is Building A SOC Team Tough?  

Setting up your security team is complex and time-consuming, especially for startups and SMBs. Finding the right people can be tough, and experienced staff can be costly and complex to keep. You also need a 24/7 dedicated team to monitor your systems and respond quickly to cyberattacks.    

In addition, you’ll need to purchase and manage advanced security tools like SIEM and EDR. These tools must work together or be appropriately set up. If not, you’ll miss important alerts or get too many false ones. The damage can be severe if your team gets overwhelmed or misses a real threat.  

In-House SOC vs SOCaaS: Cost Breakdown for Comparison 

The various cost types associated with SOC operations can be broadly categorized into direct expenses, long-term ownership costs, and operational overheads.  

• Direct expenses include personnel salaries and the costs of security tools and technologies, which are significant in in-house setups.  

• Long-term costs encompass ongoing tool maintenance, staff turnover, and compliance-related expenses that accumulate over time.  

• Operational overheads involve hidden costs such as alert management, incident response delays, and the need for continuous staff training. 

Here’s a cost comparison between building an in-house SOC and leveraging a SOCaaS model for a small to mid-sized business with approximately 100–150 employees. These figures are approximate, and actual costs may vary based on specific business needs, tools, and vendor pricing. 

Cost Component	In-House SOC	SOCaaS
Security Analysts (3 shifts)	$450,000	Included
Dedicated Security Manager	$150,000	Included
SIEM & Log Management Tools	$80,000	Included
Threat Intelligence Subscriptions	$20,000	Included
24/7 Monitoring Infrastructure	$50,000	Included
Training & Certification	$20,000	Included
Compliance Reporting & Audits	$50,000	Included
Total Estimated Cost	$820,000	$120,000

Transitioning to SOC-as-a-Service can help mitigate many of these costs by providing predictable subscription fees, automating routine tasks, and offering scalable resources. This ultimately leads to more efficient and cost-effective security management.

It gives the same or often better protection at up to 85% less cost. You get faster setup, access to expert talent, and built-in compliance support. 

What to Ask Before Choosing a SOCaaS Provider? 

Given the advantages of SOC-as-a-Service (SOCaaS), outsourcing your security operations can be smart. However, the market is saturated with vendors, and choosing the right partner is critical—after all, it impacts your data, workflows, team, and customers. 

To make an informed decision, ask these key questions before finalizing a SOCaaS provider: 

• Who is on your team, and what’s their experience? – Find out who will monitor your systems and what kind of training or certifications they have. This helps gauge the provider’s capability to handle complex threats.  

• How fast do you respond to threats? – Look for providers offering 24/7 monitoring with clearly defined response times to ensure rapid containment and mitigation of security incidents. 

• What kind of reports will I receive? – You should receive regular, easy-to-understand reports and real-time alerts showing incidents, trends, and actions taken. 

• Do you support hybrid security models? – Some companies keep certain functions in-house while outsourcing others, like using internal staff for basic rule management and relying on the provider for 24/7 threat monitoring. Ask if the provider can work within such a setup. 

• Do you help with compliance requirements? – A reliable SOCaaS partner should support industry standards like HIPAA, PCI-DSS, WISP, or GDPR and clearly explain where your data is stored and who can access it. 

• Is support available 24/7, even at night? – Round-the-clock support ensures you’re always protected, especially if your business runs late hours or spans multiple locations.  

• Do you use the latest security technology? – Ask if they use AI or automated tools to detect threats faster and reduce false alarms, and how often they update their systems to avoid new cyber risks.   

• Can I see customer testimonials or case studies? – Request references or success stories from businesses similar to yours to gauge the provider’s real-world effectiveness. 

• Does your service fit my business size and needs? – Make sure the provider can scale up your operations and offer a solution that’s not too basic—or too complex—for your setup. 

• How do you protect my data and ensure its security? Ask about their data protection measures, encryption, access controls, and compliance with security standards to understand how your data is kept safe. 

• How is your pricing determined? Understand the factors that influence cost, such as service scope, number of monitored assets, response times, and any additional fees. 

Take the Next Step—Protect Your Business 24/7 with SOC-as-a-Service 

You have two choices: build your team to monitor security threats or partner with a provider with the people and tools in place. In-house teams are a good option for large enterprises with a proper budget and resources to handle security incidents effectively. However, outsourcing is faster, easier, and less stressful for businesses without hiring full-time staff to manage everything.   

Ace Cloud Hosting has served businesses across various industry verticals for over a decade, supporting their cloud, security, and IT needs. Outsource your business security with Ace Cloud Hosting’s SOC as a service and benefit from AI-powered threat detection, real-time prevention, and rapid response, which are delivered by expert security professionals who act as an extension of your team to protect against evolving cyber threats. Book a free consultation today!