Security Operations Centers (SOCs) are having an identity crisis. On paper, the SOC is supposed to be the always-on nerve center of cybersecurity detection, investigation, containment, and recovery. In reality, many SOCs have become an expensive treadmill: too many alerts, too few analysts, constant tool tuning, and leadership pressure to “be resilient” while budgets and headcount stay flat.
So, the strategic question isn’t “Do we need a SOC?”; you do. The real question is far more important.
Should you build it in-house, outsource it, or co-source it?
There is no one-size-fits-all answer. But there are very predictable failure modes and a few decision rules that make the right choice obvious.
This blog breaks down each model (in-house, outsourced, co-sourced), the tradeoffs that matter, and how to decide based on your actual constraints, not aspirations. It also explains why CyberMSI is built to support organizations that want either a fully outsourced SOC or a co-sourced model that augments internal teams with round-the-clock cybersecurity coverage and deep specialization.
First: What a SOC Actually Has to Do
Before you choose a model, you need to be clear about the baseline scope. A functioning SOC must consistently deliver:
- 24x7x365 monitoring across AI agents, endpoints, identities, apps, email, cloud, and network
- Triage and validation to separate true positive incidents from noise
- Investigation with context (identity, device, user behavior, data sensitivity, business criticality)
- Containment (disable accounts, isolate endpoints, block malicious traffic, revoke sessions, stop exfiltration)
- Eradication and recovery coordination (removing persistence, patching, remediating misconfigurations, restoring services)
- Detection engineering (tuning, rule development, threat hunting, continuous improvements)
- Security automation to coordinate and execute incident management response actions in an automated way typically using SOAR (Security Orchestration & Automated Response) tools based on business requirements
- Reporting and governance for executive communications, audit evidence, metrics that reflect outcomes
If any of these are missing, you don’t have a SOC. You have a mailbox for alerts. Therefore, let’s examine the three operating models for your SOC.
Option 1: Build and Run Your SOC In-House
An in-house SOC makes sense when you meet most of these conditions:
- You have stable budget for staffing, tools, and training
- You can recruit and retain security talent in a competitive market
- You need deep control over operations and priorities because it’s required for customer, regulatory, or compliance needs
- You have a mature security program (identity governance, asset visibility, incident response playbooks)
- You can justify 24x7x365 coverage and on-call burden
- You can maintain SOAR tools, tune detections and validate improvements on ongoing basis
The upside
- Maximum control over SOC processes and data
- Internal context is strong regarding apps, users, business workflows, etc.
- Closer alignment with internal stakeholders
The truth
Most organizations underestimate what “in-house SOC” really means. It’s not hiring a few analysts and buying a SIEM. It’s a continuous operations machine.
24x7x365 coverage alone typically requires multiple shifts, redundancy for PTO and sick time, and an escalation chain. Add detection engineering, threat hunting, and incident response leadership, and the cost expands quickly.
The real risk is this: a partially staffed SOC creates false confidence. You get dashboards, alerts, and monthly reports, but incidents still slip through because nobody can keep up with the volume or respond fast enough.
Common failure modes
- Alert fatigue becomes normalized (“We’ll look at it when we get the time”)
- After-hours coverage is weak (attacks don’t respect business hours)
- Turnover erases institutional knowledge
- Detection tuning is neglected because investigations consume all time
- Incident response becomes improvisation rather than execution
If you can fund and operate it properly, in-house SOC is feasible. But if you can’t, it becomes a high-cost liability.
Option 2: Fully Outsource Your SOC
SOC outsourcing is often the right call for organizations that need strong outcomes without building an operations machine.
A fully outsourced SOC makes sense when:
- Your internal security team is lean or focused on strategy/governance
- You need immediate 24x7x365 monitoring and response capability
- You want predictable cost and service levels
- Your business risk demands coverage that staffing constraints can’t support
- You want expert containment and incident ownership, not internal scramble
The upside
- Rapid time-to-value (weeks, not years)
- 24x7x365 coverage without building shifts, on-call, and escalation internally
- Mature playbooks and experienced responders
- Reduced operational burden, so internal team can focus on architecture, risk, and governance
The risks buyers must confront
Outsourcing fails when the provider is doing “alerting-as-a-service” rather than true MDR (Managed Detection & Response) operations. The biggest risks include:
- “We recommend actions” instead of “we perform containment and mitigation actions on your behalf”
- Black-box workflows where you can’t see what’s happening in real time
- Lack of tenant-based custody over security data/telemetry
- Providers inserting a “customer portal/UI/dashboard” that obfuscates what operational visibility
- Generic detections that are not tuned to your environment
- Slow escalation paths and unclear incident ownership
Outsourcing works when the provider owns outcomes and operates transparently. If you can’t verify that, outsourcing quickly becomes an expensive middle layer.
Option 3: Co-Source Your SOC
Co-sourcing is a good fit for organizations that want control and internal context, but cannot sustain full 24x7x365 operations, deep detection engineering, and senior incident response leadership on their own.
A co-sourced SOC model makes sense when:
- You have an internal security team but lack round-the-clock staffing
- You want your team to retain operational control and visibility
- You need surge capacity during incidents, projects, audits, or threat spikes
- You want specialized expertise (identity, cloud, threat hunting, incident response) without full-time hires
- You want flexible coverage (off-hours/weekends, holidays, peak periods)
The upside
- Your team stays close to operations and context
- You fill coverage gaps without hiring full shifts
- You get expert-level capability when you need it most
- You can scale up or down without breaking your org chart
- You reduce burnout by offloading after-hours burden
Co-sourcing is also preferable when leadership demands improved response outcomes but won’t fund the headcount needed to build a full 24x7x365 SOC internally.
How to Decide:
If you want to make the choice quickly, use these decision criteria.
Choose in-house if:
- You can fund staffing for 24x7x365 coverage, plus detection engineering
- You can recruit and retain experienced analysts and responders
- Your security program is mature enough to feed the SOC (asset inventory, identity hygiene, playbooks)
- You need maximum customization and control across highly specific workflows
Choose outsourced if:
- You need 24x7x365 now
- Your internal team is small or business and governance-focused
- You want predictable costs and operational outcomes
- You need end-to-end incident management and containment without internal burden
Choose co-sourced if:
- You need to retain full operational control and visibility but can’t staff 24x7x365
- You need off-hours coverage, surge capacity, or specialized expertise
- You need your internal team focused on security strategy while maintaining operational oversight
- You want a model that scales with your business without constant hiring
Where CyberMSI Fits: Outsourced and Co-Sourced SOC That Actually Operates
CyberMSI is designed for organizations that want real security operations outcomes without the friction, opacity, or staffing burden that typically comes with SOC operations. CyberMSI supports two primary models:
1) Fully Outsourced SOC (MDR)
For organizations that want to hand off 24x7x365 monitoring and response, CyberMSI operates the SOC function end-to-end with:
- Continuous monitoring and investigation
- Rapid incident triage and validation
- Full containment and remediation execution based on approval workflows
- AI agentic, identity-focused response and cloud-aware detections
- Executive-ready reporting and governance support
This model is built for speed, accountability, and outcomes.
2) Co-Sourced SOC (Augmentation + Coverage)
For organizations with an internal security team, CyberMSI can augment your SOC in a co-source model in two practical ways:
Off-hours and weekend coverage: Your team handles business hours; CyberMSI covers nights, weekends, holidays, and peak-risk periods, so incidents don’t sit unattended.
Expertise + capacity on demand: CyberMSI SOC professionals add depth where many internal teams are stretched thin with AI agentic attacks, identity incidents, cloud control-plane investigations, complex threat hunting, incident command, and containment coordination.
This allows internal teams to keep operational control and context while eliminating the “we’re blind after 5 PM” problem.
Why Outsourcing Often Delivers the Best ROI
If you step back, the true cost of SOC operations isn’t just wages. It’s:
- Recruiting delays and hiring risk
- Turnover and retraining costs
- On-call fatigue and burnout
- Knowledge gaps in AI agent, identity, cloud, and modern attack paths
- Missed detections and delayed response costs
- The business impact of downtime, ransomware, and data exposure
Outsourcing gives you:
- 24x7x365 capability without internal staffing
- Full incident management without hiring unicorns
- An accelerated path to maturity without waiting years
For most organizations, outsourcing is the fastest path to improved outcomes and the most sustainable operational model.
Bottom Line
The “right” SOC model depends on your ability to fund and sustain real operational capability:
- In-house is feasible if you can staff, train, and retain a full operations team and continuously improve detections.
- Outsourced is ideal when you want immediate 24x7x365 capability and outcome ownership without building an internal machine.
- Co-sourced is preferred for organizations that need to retain control of SOC due to customer, compliance or regulatory requirements while gaining coverage, capacity, and expertise.
If you’re trying to reduce risk quickly, avoid burnout, and prove measurable incident outcomes, the co-sourced or outsourced model is often the smartest move.
Let’s chat if you’d like to better understand our MDR capabilities and which SOC delivery model best supports your needs.