BRYGGERVANGEN, DENMARK — ​​A new report from security solutions provider Logpoint revealed that businesses across Europe are increasingly turning to cybersecurity outsourcing due to a growing skills gap in the region. 

The European Cybersecurity Sector 2024 report surveyed over 1,762 senior decision-makers across the continent, highlighting a significant shift towards outsourcing. Currently, 52% of European businesses already rely on third-party providers for their security needs, with many more expected to follow suit in the coming years.

The report indicates that 28% of businesses in the United Kingdom (UK) plan to outsource their cybersecurity operations within the next two years. France and Germany are also seeing similar trends, with 24% and 27% of businesses, respectively, intending to outsource. 

In the Nordic region — which includes Denmark, Finland, Iceland, Norway, and Sweden—, 14% of companies are expected to make the switch.

This growing reliance on managed security service providers (MSSPs) is expected to outpace in-house security management across Europe soon.

Regulatory compliance and accountability fuel demand for MSSPs

One of the key factors behind this shift is the increasing burden of regulatory compliance. European businesses face stringent regulations such as the general data protection regulation (GDPR) and Network and Information Systems Directive 2022 (NIS2), which require robust cybersecurity measures and personal accountability at the board level. 

Innes Muir, Regional Manager at Logpoint, explained: “The burden of regulatory compliance coupled with the onus being placed on individual members of the board and senior management is driving demand for MSSP services.”

MSSPs provide external expertise and tailored solutions that help businesses meet these compliance requirements. In fact, 93% of UK respondents cited compliance as their top reason for choosing an MSSP. 

This trend is echoed across Europe, where businesses are increasingly looking for third-party providers to ensure they meet regulatory standards while shifting some of the accountability.

Europe’s cybersecurity skills shortage worsens

The growing demand for outsourcing is also fueled by a widespread cybersecurity skills shortage across Europe. 

According to the ISC2 2024 Cybersecurity Workforce Study, Europe faces one of the largest workforce gaps globally, with the UK experiencing a particularly severe shortage. The UK’s workforce gap has grown by 27.1% over the past year, while its cybersecurity workforce has shrunk by nearly 5%.

Other European countries are facing similar challenges. France and Germany have also reported difficulties in recruiting skilled cybersecurity professionals. 

Across Europe, 60% of businesses that outsource their cybersecurity operations do so because they lack internal skills and knowledge, while nearly half (48%) struggle to recruit qualified candidates.

Future trends: More regulations and bundled solutions

Looking ahead, regulatory changes such as the upcoming Cyber Security and Resilience Bill are expected to further increase demand for MSSPs across Europe as companies seek to shift accountability and ensure compliance. 

The survey also found that MSSPs will likely seek bundled offerings from cybersecurity vendors — 94% of respondents expressed interest in such solutions.

As European businesses continue to grapple with a shrinking talent pool and mounting regulatory pressures, outsourcing is becoming an increasingly attractive option for managing cybersecurity risks effectively.

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