Most business owners are hesitant to outsource parts of their business operations. This is understandable. They might be concerned about the quality of services they'll receive or the costs involved. In the case of cybersecurity, they're often worried about giving an outside company access to their network. While these all seem like logical negatives of outsourcing, they're based on unfounded concerns. Outsourcing can cost less than creating an in-house department while providing better security services. Hiring a trustworthy cybersecurity provider is essential, but the risk of poor security is much greater than trusting an outsider with network access. Outsourcing cybersecurity is the best option for most small and medium-sized businesses. These are the top five reasons that businesses should outsource their cybersecurity.
Cybersecurity is too critical and too complex to leave up to your existing team. If you'd like to manage cybersecurity in-house, you'll probably need to start a dedicated department and hire specialists. The average annual salary for a cybersecurity specialist is around $120,000, and business owners know that hiring an employee costs between 1.25 and 1.4 times their salary. You'll also need to pay for the sophisticated software and tools your new department will need. You'll pay a fixed monthly fee for 24/7 coverage when you choose to outsource.
In many cases, this fee is significantly less than the overall cost of running an in-house team. You'll also save time because you won't need to hire or manage your cybersecurity employees. Even better, you won't need to spend time trying to implement security solutions that might not be effective. Outsourcing departments that are essential but not part of the core purpose of your business is usually a good idea, and cybersecurity is no exception. An outside security team frees up your employees' time and attention to focus on the unique aspects of your business.
You're unlikely to hire more than one or two dedicated cybersecurity employees. That means you'll only have access to that limited pool of knowledge. An outsourced team works with multiple clients, meaning they've had the opportunity to see and respond to more problems. If your business faces a threat, you want the professionals responding to that threat to have experience with that threat. Your outsourced team is unlikely to see any particular problem for the first time, so they'll be better prepared to handle it quickly and effectively. Professionals learn from experience. You don't want your team to learn how to manage a type of attack that's new to them at your company.
Most business owners don't have the knowledge or understanding of cybersecurity to determine what kind of protocols and services they need on their own. This makes trusting a dedicated team of experts the best way to protect your business. Outsourcing gives you access to more skills and resources. For example, cyber attacks can happen anytime, but a small department can't reasonably provide 24/7 coverage. Your outsourced cybersecurity provider will have a larger team that can offer evening and weekend coverage and support. With in-house security, your budget and your employees' knowledge and work capacity will limit the tools and software programs your team can use. A larger outsourced team will likely use more tools to give you better security.
Cyber attacks can damage or destroy your business. Small and medium businesses may be unable to survive the financial costs and damaged reputation associated with a breach. Looking at small businesses, 60% of those that experienced an attack went out of business within six months. If your business brings in $1 million a year, an attack that shuts it down will cost at least $30,000 daily. Even after responding to the attack, your reputation may be damaged, which can make getting back to normal operations more difficult. Your company probably can't handle this disruption, so it makes sense to protect yourself by investing in cybersecurity.
Business owners imagining a cyber attack are probably picturing this dramatic incident that takes the company offline entirely. These attacks certainly happen and pose a severe threat to any business. However, companies also need to be concerned about data breaches that are often harder to notice. The average company takes 197 days even to find out that a data breach attack has happened. After this, the company spends another 69 days fixing the problem at an average cost of $4.25 million. The faster your company can respond to a breach, the lower costs you'll need to deal with. Shortening the time you need to contain a breach from 69 days to under 30 days saves over $1 million. A faster response will save your company money even if your security team can't prevent an attack entirely.
Cyber threats aren't going away. Instead, they're constantly growing and changing. A ransomware attack took place every 40 seconds in 2016. In 2021, these attacks happened every 11 seconds. Cybersecurity threats continuously evolve, so smart business owners are prepared to prevent and manage them. Attacks can cause financial loss, disruption to your regular business operations, damage to your company's reputation, and possible legal risk. Cyber threats are expected to cost $10.5 trillion globally by 2025. Considering these factors, cybersecurity isn't optional for businesses that want to succeed in 2022 and beyond. Partnering with an outsourced team will prepare your business for the future and protect it from financial and reputational risks.
Cybersecurity services are essential for modern businesses, and outsourcing is a great way to get these services. Unless you're running a large corporation, outsourced cybersecurity is the best way to get better protection for a lower cost. If you're looking for a cybersecurity solution on Long Island, contact LI Tech Advisors to discuss how we can help protect your business.