Managed IT vs. Co-Managed IT: A Practical Guide to Choosing the Right Model

The selection of the appropriate IT support model is vital in terms of security, productivity, scalability, and costs.

There are two main approaches to IT outsourcing: fully managed IT services and co-managed IT services, each of which has its own advantages and disadvantages, depending on the business’s needs, growth trajectory, compliance standards, and level of control.

Knowing the distinction can assist decision makers to invest in a model that will be capable of supporting both existing requirement and future growth.

What Is Managed IT?

Managed IT is a full-fledged outsourcing solution that involves the provider handling technology operations, support, security and planning.

It can be the go-to solution for companies that don’t have an in-house IT team or those that wish to have one entity responsible for everything.

Generally speaking, core services will include:

  • Help desk support
  • Network monitoring
  • Cybersecurity protection
  • Being able to back up and recover after a disaster
  • A vCIO approach to strategic planning

The provider is responsible for day-to-day operations of IT, including troubleshooting, infrastructure maintenance, and long-term technology planning.

With predictable costs and proactive support, and access to a wide array of specialists, businesses can benefit. The downside is that it means less first-hand involvement in day to day IT management.

What is Co-Managed IT?

Co-Managed IT is a partnership model of IT services providing an outside IT service provider to partner with internal IT services. The provider does not replace the existing team but adds capacity and provides them with the much needed skill.

Services often include:

  • Overflow help desk support
  • Help with cybersecurity and compliance
  • NOC and SOC monitoring
  • Cloud and infrastructure support
  • Project-based work

It is important that responsibilities are clear in order to be successful.

Business-specific tasks are typically handled by internal teams and monitoring, special projects and after-hours coverage are handled by the provider.

This model may be flexible but it has the potential to lose institutional knowledge and careful communication is needed to prevent confusion on who will own this.

When Managed IT Is the Right Fit

For organisations seeking support, security, and infrastructure management to be owned, managed IT is often the best option.

For small enterprises that don’t have their own IT teams, this provides access to expertise without having to hire. Predictable monthly expenses and scalability are a great advantage to growing companies.

Managed IT is common among regulated sectors like healthcare, finance, and legal, where compliance and security are critical, necessitating regular monitoring.

When The Use of Co-Managed IT Is the Right Fit

Co-managed IT services can be beneficial for organizations that already have an IT team. Strategic priorities can be the goal when overburdened in-house teams can delegate monitoring, support tickets and specialist projects.

Multi-location businesses benefit from more coverage, and organizations can increase cloud or cybersecurity efforts without hiring more staff.

Key Trade-Offs Between Managed and Co-Managed IT

The primary difference is the accountability. Managed IT gives one owner for support, security and technology outcomes. In co-managed environments, there is a sharing of responsibility, while role clarity is important.

Execution of the security varies, too. Managed providers typically monitor, patch, report compliance and respond to incidents. With co-managed spaces, responsibilities need to be clearly defined and documented to avoid gaps.

Another factor to consider is control. Co-managed models will enable the internal teams to have visibility, whereas managed IT will enable the provider to take more responsibility.

The cost is comparable, too, with managed IT providing more predictable costs, and co-managed providers with different ranges of costs depending on the scope and support required.

Questions to Ask Before Choosing an IT Partner

Do the following when choosing a provider:

  • How many hours and how quick are your response times?
  • What is your approach to cyber security and compliance?
  • Does the vCIO offer guidance?
  • How is the SLAs measured and reported?
  • What is the growth curve of the pricing system?

These questions can be used to assess if a provider is capable of meeting existing needs and expectations, as well as future goals.

How to Choose the Right IT Support Model for Your Business

First, look to your internal IT resources, security needs, budget and growth plans. Managed IT is generally the easier option if you are not able to have a dedicated IT team.

When existing employees are already quite capable, and you’re looking for more expertise or coverage, a hybrid arrangement of co-managed IT services might work better.

Your partner should work with you to evaluate your situation and make the best recommendation to you!

Partner With IT GOAT for Managed or Co-Managed IT Support

IT GOAT provides managed services and co-managed services, giving businesses a choice of how much or how little support they require.

IT GOAT facilitates streamlined operations and future growth for organizations, supported by U.S.-based assistance, active security services, vCIO management, and integration with over 750 enterprise applications.

Schedule an appointment to find out which, of the many different types to choose from, is the best model for your company.

Frequently Asked Questions About Managed IT vs Co-Managed IT

Are you able to upgrade to fully managed IT services in the future?

Yes. For many companies, the initial phase of service delivery is co-managed and ultimately evolves into fully managed.

What is the average onboarding period for a managed IT service provider?

For most onboarding projects, it’ll take a few weeks to finish, depending on your infrastructure’s complexity and documentation.

Is there the need for a dedicated in-house IT team to handle co-managed IT?

Even if the company has a small internal support team or just one administrator, co-managed support can be beneficial.

Which is more cost effective, managed IT or co-managed IT for small businesses?

For businesses without internal IT resources, it’s usually more cost-efficient to outsource IT services, also known as managed IT.

What does a vCIO do in managed or co-managed IT services?

A vCIO supports the strategic planning, budgeting guidance and technology leadership that supports the business objectives.