Security Operations Centre: Build vs Buy Analysis
A Security Operations Centre provides continuous monitoring, detection, and response capabilities. Every organisation needs these capabilities, but not every organisation needs to build them internally. The build-vs-buy decision for SOC capabilities is one of the most consequential financial decisions a CISO faces, with significant implications for security effectiveness, operational costs, and talent management.
The True Cost of an In-House SOC
Building an internal SOC requires substantial investment across multiple categories:
Personnel: A 24/7 SOC requires a minimum of 8-12 analysts to cover three shifts, holidays, and absences. Including a SOC manager and escalation analysts, fully loaded personnel costs (salary, benefits, training, certification) typically range from $800,000 to $1.5 million annually. In competitive markets, security analyst turnover averages 25-30%, creating constant recruitment and training costs.
Technology: SIEM licensing, threat intelligence feeds, orchestration and automation tools, case management, and investigation platforms add $150,000-$500,000 annually depending on data volume and vendor selection.
Infrastructure: Physical or virtual SOC infrastructure, dedicated networks, secure facilities, and large-screen displays for monitoring add $50,000-$200,000 in initial capital expenditure plus ongoing maintenance.
Total cost of ownership: A functional in-house SOC typically costs $1.0-$2.5 million annually. This makes in-house SOC operations economically viable primarily for large enterprises with annual security budgets exceeding $5 million.
Outsourced Alternatives
Managed Security Service Provider (MSSP): MSSPs provide monitoring and alert management, typically forwarding alerts to your internal team for investigation and response. Cost: $100,000-$300,000 annually. Suitable for organisations that need monitoring but have some internal security capability for response.
Managed Detection and Response (MDR): MDR providers go beyond monitoring to include active threat hunting, investigation, and guided or fully managed response. They combine technology with dedicated security analysts who respond to incidents on your behalf. Cost: $150,000-$500,000 annually. Suitable for organisations that need both detection and response capability without building an internal team.
Hybrid model: Some organisations maintain a small internal security team (1-3 analysts during business hours) supplemented by MDR for after-hours coverage and specialised capabilities. This provides internal ownership and context while leveraging external expertise for continuous coverage.
Decision Framework
Consider building an in-house SOC when:
- Your security budget supports $1M+ in annual SOC operations
- Your industry requires keeping security operations internal (some regulated sectors)
- Your environment is highly specialised and requires deep organisational context for effective monitoring
- You can attract and retain security talent in your market
Consider outsourcing when:
- Your security budget cannot support full 24/7 staffing
- Security talent is scarce in your market or your organisation is not a compelling employer for security professionals
- You need capabilities quickly — building an effective SOC takes 12-18 months; MDR can be operational in weeks
- Your threat landscape is well-served by standard detection rules and does not require highly customised monitoring
ROI Comparison
The ROI of SOC capabilities — whether in-house or outsourced — is driven by faster detection and response times. IBM's data shows that organisations with security monitoring detect breaches 80 days faster, saving over $1 million per incident. The question is not whether to invest in detection and response, but which delivery model maximises risk reduction per dollar for your specific organisation.