Narayan AmmachchiCorporate firms across Europe are increasingly considering outsourcing their cybersecurity operations due to a shortage of skilled professionals and the rising complexity of regulatory compliance.
A survey by Logpoint, involving over 1,700 senior leaders in technology and security across Europe, highlights that third-party management of cybersecurity could be common. Currently, 48% of organizations handle security internally, while 52% rely on external providers.
In the UK, 28% of businesses plan to outsource security within the next two years. Regional differences persist, with 65% of companies in France managing security in-house compared to 77% in Germany and 54% in the Nordic countries.
The survey reveals that 60% of respondents favor third-party providers due to a lack of internal expertise, while 48% admit they face challenges in recruiting skilled professionals.
Compliance pressures further drive the outsourcing trend, with 30% of businesses shifting accountability to managed security service providers (MSSPs) to meet regulatory demands.
“The increasing regulatory burden and focus on accountability are fueling demand for MSSPs,” the report noted.
Under the existing laws, businesses must report data breaches to authorities within 72 hours. Non-compliance can result in fines of up to €20 million (approximately $21.8 million) or 4% of global annual turnover, whichever is higher.
As organizations struggle to balance internal resources with regulatory expectations, the shift toward third-party security solutions is poised to accelerate.
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