Managed Service Providers (MSPs) are struggling with significant cyber security skills shortages, according to a new report by Sophos. The study surveyed 350 MSPs across the U.S., U.K., Germany, and Australia in March 2024. The report found that 39% of MSPs struggle to stay current with new cybersecurity technologies.
Hiring new cybersecurity analysts to cope with client growth and evolving cyber threats also remains a top concern. MSPs see the shortage of in-house cybersecurity skills as the most pressing risk to their business and clients. Other substantial threats include stolen access data, credentials, and unpatched vulnerabilities.
Scott Barlow, Vice President of MSP at Sophos, said, “The speed of innovation across the cybersecurity battleground means it’s harder than ever for MSPs to keep up with threats and the cyber controls designed to stop them. Coupled with a global skills shortage, attracting and retaining cybersecurity analysts has become increasingly challenging. This is further compounded by the need for 24×7 coverage, as 91% of ransomware attacks now happen outside business hours.
The survey shows growing demand for Managed Detection and Response (MDR) services.
Cybersecurity skills shortages challenge MSPs
81% of MSPs currently offer MDR, and 97% of those do not plan to do so soon. Due to the skills shortage, 66% of MSPs rely on third-party vendors for MDR services, while 15% deliver them through their own Security Operations Center (SOC) and third-party vendors.
Over half (53%) of MSPs work with only one to two cybersecurity vendors, with 83% using between one and five vendors. Consolidating cybersecurity tools onto a single platform could reduce management time by 48%. Other notable findings include a 99% increase in demand for cyber insurance-related support among MSPs.
Flexibility from MDR providers is also crucial, with 71% of MSPs emphasizing the importance of using telemetry from existing security tools. U.S. MSPs lead in MDR service provision at 94%, compared to 70% in Germany, 62% in the U.K., and 58% in Australia. Barlow concluded, “While MSPs face immense pressure in defending their clients from fast-paced adversaries, there is an opportunity to enhance business growth and profitability by adopting the right security setup.
Data indicates that MSPs are enhancing their offerings and reducing overheads by consolidating platforms and partnering with third-party MDR vendors. MSPs should prioritize vendors offering comprehensive, fully managed security services and solutions as they build their future security portfolios.
