It does not need to be on the source server, it is listening on the port in the processor for incoming connections. A syslog server can be configured to forward messages to the host & port that the processor is listening on.
Once it accepts connections it will be reading as fast as possible. The main properties to consider customizing are the Max Batch Size, Max Size of Socket Buffer Size, and Max Size of Message Queue Size, but this depends a lot on your environment and the amount of data.