It's always been my belief that SQL Server needs to be updated to the latest service pack in a timely (and tested) manner to continue receiving security/bug patches.
I'm now partially responsible for a 2008 R2 DB that has not had any service packs installed. The external IT company mainly responsible for maintaining it has told me that they don't install service packs unless there is a specific business need, and that it would automatically recieve security patches any way. Is this the case, or do you need to keep up-to-date (once tested) with the latest service pack?