How Managed Services Strengthens Security Posture
Cyber security has arrived at a critical crossroads in Australia – unquestionably a board-level priority but strategically, now a question of outcomes over ownership.
The shift towards a managed services model is underway as businesses embrace outsourcing to overcome threat intensity, talent scarcity, cost volatility and increased complexity.
Given such market dynamics, building and sustaining an in-house cyber capability is no longer viable.
This move reflects a broader shift – from owning cyber security internally to delivering outcomes through scalable, specialist expertise aligned to business risk.
Raghu Sunnadkal – Managed Services Practice Lead, OneStep Group
Impact of cyber skills shortage
According to AustCyber, the cyber industry needs 5000 new workers every year just to keep pace with market demand. The workforce must grow at 66% to reach the 85,000 roles required by 2030.
Currently, there’s roughly one cyber security specialist for every 240 organisations across the country.
As demand continues to outpace supply, this is no longer a short-term hiring challenge.
For businesses, the skills needed to secure modern environments – spanning cloud, identity, networks, threat detection and compliance – are increasingly unavailable in a single hire, or even a small internal team.
Organisations are struggling to overcome this systemic shortage of execution capability beneath them. This is where the managed services model becomes compelling – not as outsourcing but as access to aggregated, scarce expertise.
“Cyber security remains front and centre in every discussion – this is the biggest challenge. There’s simply not enough security expertise and it’s becoming more expensive to maintain the right level of protection. Businesses are trying to find the right balance between protection and affordability.”
Rising cost of in-house cyber talent
For businesses that do find talent, the average cost of hiring a CISO in Australia today is $280,000+.
But a leadership salary is only the starting point.
An effective in-house security function requires supporting analysts, engineers and architects, as well as 24/7 monitoring capabilities, security tooling and ongoing training and certifications.
The average salaries in Australia for these types of roles are:
Head of Information Security: $240,000+
Cyber Security Manager: $180,000+
Cyber Security Architect: $220,000+
Threat Intelligence Manager: $190,000+
Cloud Security Engineer: $170,000+
Critically, in-house investment also leaves gaps – notably after hours, during staff turnover or across specialised domains – and is challenged when scaling for coverage.
Total Cost of Ownership: In-house vs. Managed
When viewed through a total cost lens, the comparison becomes clearer:
In-house model:
High fixed costs (salary, tooling, overhead)
Limited coverage (often business hours)
Narrow skillset (dependent on individuals)
High recruitment and retention risk
Slower and more difficult to scale
Managed services model:
Predictable subscription-based cost
24/7 coverage by default
Broad, specialist expertise
No recruitment burden
Scalable with business growth
Hiring a CISO and building a team can take 6–12 months – longer in a constrained talent market like Australia. By contrast, managed service providers (MSPs) deliver immediate access to operational capability.
This speed matters.
Australian organisations are facing increasing regulatory pressure, rising attack volumes and growing complexity in IT environments. Delays in building internal capability translate directly into increased risk exposure.
“Most businesses are reactive when reaching out to an MSP. But a shift is underway as interest for ongoing and proactive strategic guidance increases. Focus is less about flashy metrics and more about how IT supports the day-to-day running of the business, reduces risk and helps avoid security breaches.”
Moving to a managed services model
For Australian organisations – notably those in regulated industries – outsourcing is now anchored on accessing premium, sovereign and nationally delivered services.
This model addresses one of the biggest limitations of in-house teams – breadth and depth of expertise.
According to Moxie Research (Security Outlook 2025 / 2026), 58% of Australian businesses are now seeking MSPs with ‘deep cyber expertise’. This is alongside providing ‘strategic guidance’ (53%) and ‘high responsiveness and support’ (51%).
Key MSP capabilities include:
Sovereign capability: data residency, compliance with Australian regulations (including SOCI obligations)
End-to-end coverage: from strategy and architecture through to operations and response
National delivery: consistent service across multiple locations and distributed environments
Ultimately, the shift towards outsourcing reflects a broader change in how businesses view cyber security. It’s no longer about owning capability internally, rather achieving outcomes.
In this context, outsourcing becomes a way to elevate security posture – not dilute it.