Managed IT Services vs. Co-Managed IT Services

Technology plays a huge role in ensuring smooth operations of both big and small businesses. Businesses rely on IT services to keep their systems running efficiently. Two common ways to handle IT needs are managing internal IT teams and outsourcing the IT responsibilities to managed service providers. Another approach to managing IT infrastructure and security is through co-managed IT services, where your internal IT team collaborates with a managed service provider.

But what exactly is managed IT services and co-managed IT services, and how do they differ from each other? What service fits your IT requirements? And, how will these services help your business grow? We will answer all these questions in detail in this article.

What Are Managed IT Services?

Managed IT Services is the comprehensive IT support provided by a third-party service provider, known as a Managed Service Provider (MSP). Managed IT services are designed to handle a company’s IT infrastructure, offering everything from network management and cybersecurity to data backups and disaster recovery.

Businesses of all sizes, small businesses to manufacturers to healthcare providers can benefit from Managed IT Services. By outsourcing IT management, companies free up their resources, reduce the burden on internal teams, and gain benefit from specialized expertise and IT resources without hiring extra staff.

Proactive monitoring, security management, 24/7 support, and software patching is included in Managed IT Services. With these comprehensive IT services, businesses can grow with the confidence that their IT operations are secure, efficient, and scalable. An MSP helps businesses stay ahead by providing strategic guidance and a customized approach to IT solutions, enabling business continuity and a competitive edge.

Pros of Managed IT Services

Full outsourcing of IT responsibilities allows businesses to focus on core operations while leaving IT management to the experts. This means all aspects of IT, from network security to software updates, are handled by the Managed Service Provider (MSP). The pros of managed IT services are:

1. Full Outsourcing of IT Responsibilities – By outsourcing IT to a Managed Service Provider (MSP), businesses can focus on core operations while leaving the management of IT systems to experts. This reduces the stress of handling day-to-day IT tasks internally.
2. Predictable Monthly Costs – With fixed monthly fees, businesses can easily budget for IT expenses, avoiding unexpected costs associated with repairs or system failures. In Los Angeles the average cost for managed IT services are $150-$500 per server, $25 to $15 per desktop.
3. 24/7 Monitoring and Support – Managed IT Services provide round-the-clock monitoring and support, ensuring that any issues are identified and resolved before they disrupt business operations.
4. Access to Specialized Expertise and Tools – MSPs bring in specialized knowledge and cutting-edge IT tools that many businesses may not have in-house, improving the efficiency and security of IT systems.
5. Reduced Internal Staffing Requirements – Managed IT reduces the need for a large internal IT team, allowing businesses to allocate resources to other areas of growth.
6. Better Disaster Recovery – With proactive data backups and disaster recovery strategies, businesses are protected against data loss and system failures, ensuring minimal downtime.
7. Enhanced Technology – MSPs help businesses stay up to date with the latest technology trends and solutions, ensuring that their systems are secure, efficient, and future-proof.

Cons of Managed IT Services

While managed IT services offer benefits to all sizes of businesses, there are some limitations. Here are some of the common disadvantages of managed IT services:

1. Loss of Control – Outsourcing IT responsibilities means businesses may have less control over their IT systems and processes. Decisions are often made by the MSP, which can lead to a mismatch with internal preferences.
2. Dependence on MSP – Relying on an MSP for day-to-day IT management can create a dependence on an external provider, potentially leading to challenges if the service provider faces issues or service quality declines.
3. Limited Customization – Managed IT services are typically designed to be standardized, which can limit a business’s ability to request highly customized solutions. This can be a drawback for businesses with very specific IT needs.
4. Less Tailored Solutions for Unique Needs – While MSPs offer comprehensive solutions, they may not always fully address a business’s unique IT requirements. Standardized service models might not be as flexible as a fully in-house team dedicated to specific goals.

What Are Co-Managed IT Services?

Co-Managed IT Services is a collaboration of MSP and a company’s internal IT team. The co-managed It services offer a hybrid approach where a business collaborates with a Managed Service Provider (MSP) to share responsibility for IT management. This model allows businesses with an existing internal IT team to access specialized expertise and resources from the MSP, filling gaps in areas like network security, cloud solutions, and disaster recovery.

Businesses that already have an in-house IT department but need additional support benefit most from co-managed services. This model offers the flexibility of shared responsibility with the MSP handling complex IT tasks while the internal team focuses on day-to-day operations.

Co-managed IT services typically include proactive monitoring, advanced security solutions, help desk support, and technology planning. MSPs can help businesses scale and improve their IT infrastructure, ensuring a seamless growth path while providing customized solutions that meet specific business needs.

Pros of Co-Managed IT Services

Co-managed IT services provide businesses with a flexible and efficient way to leverage both their internal IT team and external Managed Service Provider (MSP). This hybrid approach offers advantages that allows businesses to benefit from the best of both worlds—maintaining control over critical operations while gaining access to specialized expertise.

1. Cost-Effective Solution
   Co-managed IT services are typically more affordable than fully outsourcing IT functions. Businesses can reduce their IT costs by only utilizing external support when needed, avoiding the overhead of maintaining a large internal IT team.
2. Enhanced Collaboration with Internal IT Team
   This model fosters better collaboration between the MSP and the internal team. The co-managed IT services model ensures both sides work together to meet business goals, share responsibilities, and enhance IT performance.
3. Retained Internal Control Over Critical Systems
   Businesses maintain control over their most sensitive IT operations and critical systems while benefiting from external support for more specialized needs.
4. Flexibility to Scale External Support as Needed
   Co-managed IT services provide the flexibility to scale support as needed, allowing businesses to bring in more external resources during peak periods or special projects without the commitment of a full-time hire.
5. Access to Niche Expertise for Specific Projects
   MSPs bring specialized expertise in areas like cybersecurity, cloud computing, and disaster recovery, ensuring businesses have the knowledge needed for more complex projects.
6. Faster Issue Resolution via Shared Resources
   With a collaborative setup, businesses can leverage both internal resources and external MSP support, leading to faster resolution times for IT issues and less downtime.
7. Reduced Workload for Internal IT Team
   Co-managed services reduce the strain on internal IT teams by outsourcing routine tasks and complex problems, allowing businesses to focus on higher-level responsibilities and improving overall team efficiency.

Cons of Co-Managed IT Services

While Co-Managed IT Services offer significant benefits, there are a few challenges businesses may face in this collaborative model. The shared responsibility between internal IT teams and Managed Service Providers (MSPs) requires careful management and clear expectations to ensure smooth operation. Some of the challenges that a businesses may face are:

1. Higher Overall Costs (Internal + External Staffing)
   Combining internal and external support can lead to higher overall IT costs. Businesses must budget for both internal IT staffing and external MSP fees, which may increase the total cost of IT management.
2. Complexity in Dividing Responsibilities
   Clearly defining and dividing responsibilities between internal and external teams can be challenging. Misunderstandings in task allocation can lead to inefficiencies or missed opportunities for optimizing IT operations.
3. Potential for Internal/External Team Conflicts
   The collaboration between the internal IT team and the external MSP can sometimes lead to conflicts. Differing working styles, priorities, or communication breakdowns may create friction and hinder smooth cooperation.
4. Divided Accountability for Outcomes
   With both internal and external teams involved, accountability for IT outcomes can become unclear. This division can complicate problem-solving and performance tracking, leading to confusion over who is responsible for specific results.

What are the Similarities in Managed IT Services and Co-Managed IT Services?

Both Managed IT Services and Co-Managed IT Services share several core elements, making them similar in many ways. The baseline services provided in both models include network monitoring, cybersecurity management, data protection, and disaster recovery.

In both IT service models, businesses gain access to specialized expertise and advanced tools that may not be available in-house. Whether it’s proactive monitoring, cloud solutions, or software patching, the IT service provider brings knowledge and experience to handle these tasks effectively. For example, both models provide expert support in areas like network security.

The experience and resources offered by the MSPs in both models are similar. Businesses will get the support they need to grow, innovate, and maintain business continuity. The difference lies in the level of internal involvement—while Managed IT Services fully manage IT, Co-Managed IT Services involve collaboration with internal teams to share responsibilities.

What are the Differences in Managed IT Services and Co-Managed IT Services?

The key difference between Managed IT Services and Co-Managed IT Services is the level of involvement and control. In Managed IT Services, the MSP takes full responsibility for all IT operations, while in Co-Managed IT Services, businesses collaborate with the MSP, maintaining some control and responsibility over their IT functions. Here’s a comparison of the key differences between these IT services models:

Managed IT Services vs. Co-Managed IT Services: Which Should You Choose?

When deciding between Managed IT Services and Co-Managed IT Services, it’s important to understand the unique needs of your business. Each model offers distinct advantages based on your current IT infrastructure, team capabilities, and long-term goals

When To Hire Managed IT Services?

Managed IT Services are ideal for businesses that want to fully outsource their IT needs. If your business lacks an internal IT team or has a small team that cannot manage the increasing demands of modern technology, Managed IT Services provide a comprehensive solution.

Managed services are best suited for businesses that prioritize efficiency and security, while wanting to focus on growth rather than managing IT complexities. Key factors to consider when hiring an MSP include the MSP’s experience, service offerings, and ability to align with your company’s long-term IT goals.

When To Hire Co-Managed IT Services?

Co-Managed IT Services are a good fit for businesses that already have an internal IT team but need additional support or specialized expertise. If your internal team struggles to keep up with more complex IT tasks, such as network security, cloud solutions, or disaster recovery, collaborating with an MSP can fill those gaps.

This option is ideal if you want to maintain control over key IT functions while benefiting from the expertise and resources of an external provider. If your business is experiencing rapid growth and your internal resources need to scale, co-managed services offer the flexibility and support to keep up with the demand.

Choose Captain IT for Your IT Services

Whether you need fully managed IT services to handle all aspects of your IT or prefer a co-managed approach to enhance your internal team, Captain IT is the right managed service provider with the skills and resources to drive your business forward. Captain IT offers fully managed IT services and co-managed IT services tailored to fit your business’s specific requirements. With over a decade of experience, we provide specialized expertise, proactive support, and cutting-edge technology to ensure your IT infrastructure is secure, efficient, and scalable.