An Integrated Strategy for Information Security: Outsourcing and In-house
Nan Feng, Bin Chen · Atlantis Press eBooks · 2017
This paper examines a mixture of in-house efforts and fee-for-service outsourcing for firms to develop security protection. Due to the different degree of outsourcing, firms divide their information assets into two parts: one part is outsourced and the other part will be protected themselves. For the outsourced part, the optimal contract built by the firm and the MSSP, shows that the MSSP should bear full compensation when the firm was attacked by hacker successfully. Moreover, the unit price the firm should pay to the MSSP will decrease as the degree of outsourcing increases, which means that firms prefer to choose outsourcing because of MSSP’s cost advantage. However, the degree of outsourcing does not have an impact on the remaining part, which is not outsourced.