Should Your SMB Maintain Its Own ITSM, IT Documentation, and ISMS, or Rely on an MSP?

Small and medium-sized businesses (SMBs) face a critical decision when it comes to managing their IT infrastructure and security posture: should they maintain their own internal IT service management (ITSM) platform, IT documentation, and information security management system (ISMS), or should they outsource these functions to a managed service provider (MSP)?

Both approaches have advantages and challenges, and the right choice depends on factors such as internal expertise, budget, compliance requirements, and long-term business goals. Let's break down the key considerations for each area.

ITSM Platform: In-House vs. MSP-Provided

Maintaining an Internal ITSM Platform

Pros:

• Customization: An in-house ITSM platform allows full customization to align with specific business processes and workflows.

• Control and Ownership: You retain complete control over data, configurations, and integrations with existing systems.

• Vendor Flexibility: The ability to choose and switch ITSM tools without reliance on an MSP.

Cons:

• Higher Costs: Licensing, implementation, maintenance, and staff training require significant investment.

• Resource-Intensive: Managing an ITSM platform requires skilled personnel, ongoing updates, and troubleshooting.

• Scalability Challenges: As your business grows, maintaining an internal ITSM system may become increasingly complex and costly.

Relying on an MSP for ITSM

Pros:

• Cost Efficiency: MSPs typically provide ITSM as part of a managed services package, reducing the need for internal investment.

• Expertise and Best Practices: MSPs have experience implementing and managing ITSM solutions across multiple industries.

• Scalability and Automation: MSPs often provide enterprise-grade platforms with automation, incident response, and reporting capabilities.

Cons:

• Less Control: Customization options may be limited compared to an in-house solution.

• Dependency on the MSP: Switching providers may involve migration challenges and potential downtime.

• Security and Compliance Concerns: SMBs must ensure the MSP meets their compliance and data protection requirements.

IT Documentation: Internal vs. MSP-Managed

Maintaining Internal IT Documentation

Pros:

• Full Control: Ensures internal policies, procedures, and configurations are documented according to business needs.

• Immediate Access: Employees and IT staff have direct access to update and review critical documentation.

• Security and Compliance: Sensitive data stays within the organization, reducing exposure to third-party risks.

Cons:

• Time-Consuming: Keeping documentation updated requires dedicated effort from internal staff.

• Risk of Inconsistencies: Without a structured documentation process, IT records may become outdated or incomplete.

• Limited Expertise: If documentation is not standardized, troubleshooting and IT management can become inefficient.

MSP-Managed IT Documentation

Pros:

• Consistency and Standardization: MSPs follow best practices to ensure IT documentation is structured, updated, and easily accessible.

• Efficiency Gains: Reduces the administrative burden on internal teams.

• Security and Backup: Many MSPs provide cloud-based documentation with version control and secure access management.

Cons:

• Loss of Internal Ownership: If the relationship with an MSP ends, retrieving and restructuring documentation can be challenging.

• Potential Access Issues: SMBs must ensure they have proper permissions and control over critical documentation.

• Customization Limitations: Documentation templates and structures may be dictated by the MSP’s standard practices.

ISMS: Internal vs. MSP-Managed

Maintaining an Internal ISMS

Pros:

• Direct Control Over Security Policies: Allows the organization to tailor security policies and risk management practices to specific business needs.

• Compliance Alignment: Internal teams can ensure that ISMS frameworks adhere to industry regulations (e.g., ISO 27001, NIST CSF).

• In-House Expertise Development: Builds internal cybersecurity knowledge and incident response capabilities.

Cons:

• High Resource Demand: Requires skilled security personnel to maintain governance, risk, and compliance (GRC) processes.

• Implementation Complexity: Developing and maintaining an effective ISMS involves continuous monitoring, audits, and updates.

• Slower Response to Threats: Without dedicated security staff, SMBs may struggle to detect and mitigate cybersecurity incidents.

Relying on an MSP for ISMS Management

Pros:

• Expert Security Management: MSPs (or MSSPs) specialize in security frameworks, ensuring adherence to compliance and best practices.

• Continuous Monitoring: Many MSPs offer 24/7 security monitoring, threat intelligence, and incident response services.

• Cost-Effective Compliance: SMBs can leverage an MSP’s existing ISMS framework rather than building one from scratch.

Cons:

• Less Customization: MSPs may offer standardized security policies that do not fully align with unique business requirements.

• Shared Responsibility Model: SMBs must ensure clear contractual agreements on security responsibilities and incident response.

• Vendor Lock-in Risks: Migrating to a new provider or bringing ISMS in-house later can be challenging.

Making the Right Choice for Your SMB

Choosing whether to maintain ITSM, IT documentation, and ISMS internally or through an MSP depends on several key factors:

1. Budget: If cost constraints exist, an MSP can provide a scalable, cost-effective solution compared to building in-house capabilities.

2. Expertise: If your team lacks IT and cybersecurity expertise, an MSP can fill that gap with specialized knowledge and tools.

3. Compliance Requirements: Businesses with strict regulatory requirements may prefer maintaining control over their IT and security documentation.

4. Business Growth and Scalability: If rapid growth is anticipated, an MSP can offer flexibility and advanced IT capabilities without the burden of internal management.

5. Security Risk Tolerance: SMBs handling sensitive data may opt for an in-house ISMS to maintain tighter control, while others may benefit from an MSP’s managed security services.

From our research, SMBs typically take a hybrid approach when it comes to IT Service Management (ITSM) and Information Security Management Systems (ISMS), rather than relying solely on MSPs or maintaining everything in-house. The decision depends on factors such as budget, internal expertise, regulatory requirements, and business complexity. Here’s a breakdown of what SMBs commonly do:

ITSM (IT Service Management)

• MSP-Provided ITSM: Many SMBs rely on MSPs for ITSM tools and processes, especially if they lack dedicated IT teams. MSPs often provide platforms like ServiceNow, ConnectWise, or Autotask as part of their managed services.

• Internal ITSM: Some SMBs, particularly those with larger IT teams or specific customization needs, manage their own ITSM platforms using tools like Jira Service Management or Freshservice. This is more common in regulated industries or businesses with complex IT environments.

ISMS (Information Security Management System)

• MSP-Managed ISMS (or MSSP-Managed Security Services): SMBs without in-house cybersecurity expertise often rely on MSPs or MSSPs to implement security frameworks, manage compliance, and monitor threats. Tools like Arctic Wolf, Vanta, and Drata are commonly used by MSPs to manage SMB security postures.

• Internal ISMS: Businesses that need to comply with strict regulations (e.g., HIPAA, ISO 27001, NIST CSF) may develop and manage their own ISMS to maintain direct control over policies, risk assessments, and compliance reporting. However, even in these cases, they might use third-party GRC (Governance, Risk, and Compliance) platforms.

Key Trends

1. Smaller SMBs (1-50 employees) → Often fully outsource ITSM and ISMS to an MSP due to resource constraints.

2. Mid-sized SMBs (50-250 employees) → May have a hybrid model, outsourcing ITSM while maintaining some security controls in-house.

3. Larger SMBs (250+ employees) → More likely to have internal ITSM and ISMS teams but still leverage MSPs/MSSPs for specialized functions like SIEM (Security Information and Event Management) or compliance automation.

Need Help Making a Decision?

If your SMB is evaluating ITSM, IT documentation, or ISMS solutions, our experts can help you determine the best strategy. Contact us today to explore how a tailored MSP partnership can enhance your IT operations and cybersecurity posture!

The CISO Dilemma: Why SMBs Struggle to Understand the Value of Cybersecurity Leadership

Small and mid-sized businesses (SMBs) increasingly recognize the importance of managed service providers (MSPs) and managed security service providers (MSSPs) in handling their IT and cybersecurity needs. These businesses understand that MSPs keep their networks running and MSSPs provide security tools to protect against threats. However, many SMBs still struggle to grasp the role and value of a Chief Information Security Officer (CISO) or a virtual CISO (vCISO).

While MSPs and MSSPs offer critical services, they primarily focus on the operational and technical aspects of IT and security—such as patch management, firewall monitoring, and endpoint protection. A CISO, on the other hand, provides strategic leadership, risk management, and governance that align cybersecurity efforts with business objectives. Without this leadership, SMBs remain reactive to threats rather than proactively managing their cybersecurity posture.

Why SMBs Struggle to Accept the Need for a CISO or vCISO

1. Limited Awareness of Strategic Cybersecurity Leadership
   SMBs often view cybersecurity as a set of tools rather than a holistic business function. They invest in firewalls, antivirus software, and security monitoring but fail to see the need for leadership that integrates these elements into a comprehensive strategy.

2. Perception That CISOs Are Only for Large Enterprises
   Many SMBs believe CISOs are a luxury only large corporations can afford. In reality, vCISO services provide SMBs with flexible and cost-effective access to high-level security expertise without the expense of a full-time executive.

3. Focus on Compliance Over Risk Management
   SMBs may adopt security measures primarily to meet compliance requirements, assuming that compliance equates to security. However, without a CISO to interpret and implement best practices beyond compliance, businesses may be vulnerable to emerging threats.

4. Lack of Understanding of Business-Centric Cybersecurity
   SMBs often delegate security responsibilities to IT teams, assuming cybersecurity is purely a technical issue. A CISO ensures cybersecurity decisions align with business goals, risk tolerance, and long-term growth strategies.

The Value of a CISO or vCISO for SMBs

1. Risk Management and Threat Mitigation
   A CISO helps identify, assess, and mitigate risks that could impact business operations. Unlike MSPs or MSSPs, which focus on immediate threats, CISOs develop strategies to prevent breaches before they occur.

2. Security Governance and Compliance Alignment
   A vCISO ensures that SMBs meet industry regulations while also building a security culture that goes beyond mere compliance. They help businesses prepare for audits and avoid costly fines associated with regulatory violations.

3. Incident Response and Business Continuity Planning
   In the event of a cyberattack, having a CISO or vCISO means a business has a well-defined incident response plan. This minimizes downtime, reduces financial impact, and ensures a faster recovery.

4. Strategic Cybersecurity Investment
   Instead of blindly purchasing security tools, a CISO ensures that an SMB invests in the right technologies based on business needs and risk exposure. This prevents wasted spending and improves overall security effectiveness.

Overcoming the Resistance

To bridge the gap, SMBs need education on the role of the CISO and the benefits of having cybersecurity leadership. This is where vCISO services become a game-changer—offering scalable, affordable, and tailored security expertise. By engaging a vCISO, SMBs can transform cybersecurity from a reactive IT concern into a proactive business strategy, ensuring long-term resilience in an increasingly digital world.

Strategies to Overcome Resistance

1. Education and Awareness Campaigns
   SMBs must be educated on the evolving cyber threat landscape and how a CISO plays a critical role in protecting business assets. Providing workshops, webinars, and case studies can help business leaders understand the value of strategic cybersecurity leadership.

2. Demonstrating ROI on Security Investments
   Businesses often hesitate to invest in leadership roles they do not see as revenue-generating. Showing the potential cost savings from breach prevention, regulatory compliance, and improved operational efficiency can help SMBs justify a CISO or vCISO role.

3. Leveraging Industry Standards and Best Practices
   SMBs are more likely to adopt security leadership if they see how CISOs align with established frameworks like NIST CSF or CIS Controls. Mapping cybersecurity improvements to industry standards can help demonstrate the necessity of governance and leadership.

4. Flexible and Scalable vCISO Services
   Offering SMBs a fractional or virtual CISO solution lowers the barrier to entry. This allows them to access high-level security expertise without the financial burden of hiring a full-time executive.

5. Integration with Existing MSP/MSSP Services
   Positioning a vCISO as an extension of their existing MSP/MSSP relationships can help SMBs see the role as complementary rather than redundant. A CISO or vCISO enhances, rather than replaces, their current security posture.

By recognizing the difference between technical security management and strategic cybersecurity leadership, SMBs can fully embrace the role of the CISO, strengthening both their security posture and their overall business success.