Benefits and Pitfalls of Outsourcing Security

1. Benefits and Pitfalls of Outsourcing Security Stan Kiyota, CISSP & CISM Senior Information Security Manager Booz Allen Hamilton, Inc.

2. Agenda • Outsourcing • Definition • Responsibility • Keys for success • Why? • Who? • What? • Managed security service provider (MSSP) • Definition • Market trends, players • Pros and cons of using an MSSP • What to look for in an MSSP • Key elements for managing outsourced security services • Tips for successfully outsourcing security services

3. Defining “outsourcing” • Outsourcing: arrangement in which one company provides services for another company. • These services are ones that usually can be provided in-house but for one reason or another are not.

4. Audience Response Raise your hand if you outsource some form of your IT services today.

5. Audience Response Raise your hand if you outsource some form of your information security services today.

6. Outsourcing means you are still responsible • You are responsible and held accountable; if something happens, responsibility rests with you. • The outsourcing vendor should demand that you have an active role in management oversight.

7. These elements must come together for a successful outsource to occur Service Level Agreements Management Oversight Your MSSP Business Policies & Legal Agreements IT & Information Security Policies

8. Why outsource? • Cannot afford full-time info sec staff • Cannot retain competent information security staff due to wages and market competition • Have already outsourced other IT functions, why not information security services? • Have already figured out that someone else can do it better, cheaper, faster than we can • All of the above and more…

9. Who outsources? • Businesses where IT security is not considered a core function of the business • Commercial businesses up to $US1B in revenues; however, there are some multi-billion-dollar companies which have outsourced their entire IT functions to the likes of EDS and IBM • Governments (Federal, State, Local)

10. What services should I consider outsourcing? • Complete a business requirements analysis and determine the gaps between needs and capabilities. • Determine what the business can support and what the labor market can bear. • Ensure that your info sec architecture is complementary to the developing business plan for outsourcing. • Document all services to be outsourced and policies, technologies, processes to support. • Present a comprehensive business (not IT) plan for implementing managed security services.

11. What are “Managed Security Services” (MSS)? • Managed Security Services (MSS) offer onsite and remote monitoring and management of security services with 24x7 real-time monitoring, protection, escalation and response processes. • Many of the managed services offered include: • Firewalls • intrusion detection systems (IDS) • virtual private networks (VPNs) • Routers • antivirus/content checking • periodic vulnerability or penetration studies/testing Source: IDC

12. What is the market for Managed Security Services Providers (MSSP)? • Yankee, Forrester, Gartner, etc. have varied estimates of a $2B to $5B market for managed security services by 2005, to as much as $8B by 2008. • Everyone is trying to play, but the vendor market is consolidating. • MSSPs with 5 people are competing with companies with 50,000 employees.

13. Who are the players in the MSSP space? TruSecure LURHQ

14. In 2003, only two firms were identified as leaders in Gartner’s North American MSSP Magic Quadrant™ Source: The Gartner Group

15. Audience Response Raise your hand if you use or have used one of those companies listed today.

16. Why should my company consider using managed security services? Source: Unisys UK & IDC

17. What are the downsides of using managed security services? • Someone else has responsibilities you may not have direct control over. • You don’t build internal expertise and knowledge. • Legal liabilities and ramifications if something happens may be limited. • What happens if the provider goes out of business… suddenly… such as Salinas Group, Pilot Networks, Covad, Nettel, LMGT and others? • What about Arthur Andersen?

18. What should I look for in an MSSP? • Sound, written confidentiality agreements (SLAs) • Willingness to negotiate flexible contracts and terms • One who provides resumes or qualifications of those actually doing the work • One with expertise in the area you may outsource • Flexibility to meet your business and IT needs • Size and geography to meet your needs • Financial viability of the company

19. Other crucial considerations in an MSSP • Do they have the size to do the job? • Do they use sound technology & processes? • White hat or black hat? • Are they a business partner today? • SOC: More than one backup? • Do they cover your security products?

20. Finally, are they truly qualified to do the job? • Are they ISO17799 or BS7799 compliant & certified? • CISSPs? CISMs? CISAs? SSCPs? GIAC? • CERT, IETF, FDIC, FFIEC, OCC, HIPAA experienced?

21. Identifying the key elements of managing outsourced security services • How much should your vendor manage? • Ownership, location, management over security devices and type • What can you afford to do, and what can you not? • What’s the role of policies and legal requirements? • Outsourcing means you are still responsible.

22. How much should your vendor manage? • You -- not the vendor -- should decide the level of the vendor’s involvement. • You need to retain overall management responsibility of the effort. • Size does matter… the larger the outsourcing effort, the more management effort you will need to put in.

23. How much can you afford? What can you afford not to do? • You must retain control over strategies and policies. • Managed services are most successful when outsourcers have control over entire segments ― e.g. firewalls, intrusion detection, etc. • Do not let the provider’s technology expertise sway your technology direction and requirements.

24. What’s the role of security policies and legal requirements? • First and foremost, you must have a complete set of IT and information security policies in place • SLA: scope of activity and when; uptime; response time; activities after virus, hack, breach, incident, etc. • A good vendor will not take a contract with you without these. • Your business should have corporate policies on how outsourcing agreements are executed legally within your company.

25. Outsource only when… • You retain control. • You have properly negotiated legal and financial agreements. • You have business, IT and information security policies. • You always retain the right-of-refusal for staff servicing your account. • The vendor says they can do what you need, rather than saying they can do it all. • You have SLAs that can be measured and rewarded (or penalized). • You make sure the vendor will be there for you.

26. Key outsourcing points • Remember: There is no one rightprovider… IDC. • Leverage relationships, but don’t relinquish responsibilities. • Bottom Line: Outsourcing information security requires you to have explicit trust in your vendor and the faith that they will always do the right thing on your behalf.

27. Thank you.Questions, comments?