Cybersecurity outsourcing grows among North American SMBs
NEW DELHI, INDIA — Small and medium-sized businesses across the United States and Canada are increasingly handing off parts of their cybersecurity operations to external providers, with managed detection and response (MDR) services emerging as a preferred option amid rising digital threats.
According to a report from SSBCrack News, recent industry data shows that 16% of U.S. SMBs and 19% of their Canadian counterparts now actively outsource some or all of their cybersecurity functions — a gradual but meaningful shift in how smaller firms approach digital defense.
Outsourcing, the report noted, still remains a minority strategy overall, though the mix of providers is clearly in flux.
MDR services gain ground through cyber insurers
Among U.S. SMBs that outsource, 35% work with a cyber insurer that offers MDR services, while 21% contract with standalone MDR vendors and 17% rely on managed service providers or managed security service providers that offer MDR.
Despite this diversification, 27% of the firms still depend on traditional MSPs for their cybersecurity needs.
The movement, the report said, reflects “a growing preference for comprehensive risk management solutions” as smaller companies work to strengthen their defenses against more sophisticated attacks.
Canadian firms lean on insurers, stick with traditional MSPs
The picture north of the border looks similar but distinct. Among Canadian SMBs that outsource, 27% partner with a cyber insurer providing MDR, while just 8% engage a standalone MDR vendor.
Another 27% work with managed service providers (MSP) or managed security service providers (MSSP) that include MDR, but 38% — the largest share — continue to rely on traditional MSPs.
The contrast suggests Canadian firms are slightly more conservative in their provider mix, leaning on insurers and legacy partners rather than pure-play MDR specialists. Even so, the direction of travel in both markets points toward more specialized, bundled security offerings.
A maturing buyer for the outsourcing industry
For the broader outsourcing sector, the findings point to a more sophisticated buyer rather than a bigger one.
SMBs are no longer treating cybersecurity as a commoditized IT line item but as a risk-management discipline that rewards specialization — and that distinction is quietly reshaping demand.
The blending of insurance products and managed security services, in particular, creates openings for business process outsourcing (BPO) and IT services providers to reposition their offerings around outcomes rather than hours.
The report characterizes the moment as “a transitional phase in the cybersecurity outsourcing landscape,” one that could reshape how cybersecurity work is packaged, priced, and delivered across North America in the years ahead.
