Understanding the SOC Service Model: Managed vs. Hybrid vs. In-House SOC

In today's rapidly evolving threat landscape, organisations face increasing cyber risks that require continuous monitoring, threat detection, and incident response capabilities. A Security Operations Centre (SOC) provides these services by using advanced technology, skilled security analysts, and established processes to protect critical infrastructure and data. However, not all SOCs are built the same. Organisations must choose between managed, hybrid, and in-house SOC models based on their specific needs, budget, and resources.

This article explains the key differences between these SOC service models, their advantages and challenges, and how to choose the right one for your organisation.

1. What is a SOC?

A Security Operations Centre (SOC) is a centralised function responsible for monitoring, detecting, analysing, and responding to cybersecurity threats. It serves as the frontline defence against attacks, ensuring that security incidents are handled promptly to minimise damage and downtime.

Key components of a SOC include:

• Security Information and Event Management (SIEM) systems for event correlation and analysis.

• Threat intelligence to identify emerging risks.

• Skilled analysts who investigate alerts and coordinate incident response.

• Incident response playbooks to guide containment, mitigation, and recovery efforts.

Depending on the organisation’s capabilities, a SOC can be operated internally, outsourced to a managed service provider, or implemented as a hybrid model.

2. The Three SOC Service Models

2.1. In-House SOC

An in-house SOC is fully owned and operated by the organisation. The company hires and manages its own security team, deploys its own infrastructure, and defines all security policies and procedures.

Key Features:

• Full control over security operations, policies, and technology stack.

• SOC staff are internal employees, reporting directly to company leadership.

• Customised security processes aligned with business needs and risk profile.

Advantages of an In-House SOC:

1. Customisation: Organisations can tailor security operations to their unique environment and requirements.

2. Data Control: Sensitive data remains entirely within the organisation, reducing concerns about third-party access.

3. Direct Oversight: Immediate control over incident handling, security monitoring, and risk management.

Challenges of an In-House SOC:

1. High Cost: Building and maintaining an in-house SOC requires significant investment in technology, staffing, and training.

2. Resource Intensive: Recruiting and retaining skilled security professionals can be difficult, especially in a competitive market.

3. Scalability: Expanding the SOC to handle growing operations may require additional infrastructure and personnel.

2.2. Managed SOC (SOC as a Service)

A managed SOC involves outsourcing the organisation’s security operations to a third-party Managed Security Services Provider (MSSP). The provider operates the SOC on behalf of the client, delivering 24/7 monitoring, threat detection, and incident response.

Key Features:

• The provider supplies the technology, infrastructure, and security experts.

• Services are typically delivered on a subscription or contract basis.

• The organisation receives regular reports, alerts, and guidance from the provider.

Advantages of a Managed SOC:

1. Cost Efficiency: Avoids the capital expenditure (CapEx) of building an in-house SOC by using a subscription-based model.

2. Access to Expertise: Leverages the provider's team of experienced security analysts and threat intelligence resources.

3. Scalability: Easily adjusts services to meet changing business needs, such as adding new users or locations.

Challenges of a Managed SOC:

1. Data Privacy: Organisations may have concerns about sharing sensitive data with a third-party provider.

2. Limited Control: While the provider handles daily operations, the organisation may have less control over certain processes.

3. Dependency on Provider: The organisation relies on the provider for incident response and reporting, which may affect response times or customisation.

2.3. Hybrid SOC

A hybrid SOC combines elements of both in-house and managed SOC models. In this approach, the organisation maintains some internal security operations while outsourcing specific functions to a managed service provider. For example, the in-house team may handle strategic tasks like risk management, while the provider manages day-to-day monitoring and alerting.

Key Features:

• Collaboration between internal security teams and the MSSP.

• Internal control over critical assets and processes, with external support for operational tasks.

• Flexibility to adjust the balance between in-house and outsourced services as needed.

Advantages of a Hybrid SOC:

1. Balanced Control: Organisations can retain control over high-priority functions while outsourcing routine tasks.

2. Resource Optimisation: Internal staff can focus on strategic initiatives, while the provider handles time-consuming operations like log monitoring and threat hunting.

3. Improved Resilience: Hybrid SOCs can leverage both internal and external expertise, enhancing the organisation’s ability to respond to complex threats.

Challenges of a Hybrid SOC:

1. Integration Complexity: Ensuring seamless communication and collaboration between internal and external teams can be challenging.

2. Coordination Issues: Clear roles, responsibilities, and escalation procedures must be defined to avoid delays in incident response.

3. Cost Management: Balancing the costs of in-house and outsourced services requires careful planning and regular reviews.

3. Key Factors to Consider When Choosing a SOC Model

When deciding between managed, hybrid, and in-house SOC models, organisations should evaluate several factors:

3.1. Budget and Resource Availability

• An in-house SOC requires significant investment in infrastructure, staffing, and training.

• Managed SOCs offer predictable, subscription-based pricing with lower upfront costs.

• Hybrid SOCs may provide a balance between cost savings and internal control.

3.2. Security Needs and Complexity

• Organisations with complex or highly regulated environments may prefer an in-house or hybrid model to maintain control over sensitive data.

• Managed SOCs are ideal for businesses that need comprehensive security services without the burden of managing operations internally.

3.3. Compliance and Data Privacy

• Certain regulations (e.g., GDPR, NIS2, DORA) may impose restrictions on data sharing and outsourcing.

• Organisations should verify that managed service providers comply with relevant security and privacy standards, such as ISO 27001 or CREST accreditation.

3.4. Skill and Expertise

• In-house SOCs require skilled security analysts, which can be difficult to recruit and retain.

• Managed SOCs provide access to experienced security professionals, reducing the risk of talent shortages.

• Hybrid SOCs enable organisations to retain key expertise internally while leveraging external support.

4. Comparison Table: Managed vs. Hybrid vs. In-House SOC

5. Making the Right Choice

Choosing the right SOC model depends on your organisation’s size, industry, risk profile, and long-term goals. Here are some general recommendations:

• Small to Medium Enterprises (SMEs): Managed SOCs provide cost-effective, comprehensive security services with minimal resource requirements.

• Enterprises with Complex Needs: Hybrid SOCs offer flexibility and scalability, allowing organisations to maintain control over critical operations while outsourcing routine tasks.

• Highly Regulated Organisations: In-house or hybrid SOCs may be necessary to meet strict compliance requirements and data privacy obligations.

Ultimately, the right SOC model should align with your organisation's business objectives, security priorities, and resource capabilities.

6. Conclusion

Understanding the differences between managed, hybrid, and in-house SOCs is essential for making an informed decision about your organisation’s security operations. Each model offers distinct advantages and challenges, and selecting the right one can significantly enhance your organisation's ability to detect, respond to, and mitigate cyber threats.

For expert guidance on SOC implementation and security operations strategy, contact our team of cybersecurity specialists today.