How to decide between fully managed and co-managed IT services

A U.S.-based architecture and design firm was growing fast, and the company’s relatively small in-house IT department struggled to keep up with everyone’s tech support needs as the organization added new locations. Their infrastructure also couldn’t support distributed sites where workers needed to access large files.

To remedy their technology issues, the firm sought assistance from one of our partners, a managed IT services provider that deployed a tailored cloud storage solution and took over daily tasks like help desk, application support, and network monitoring and management. The company ended up depending on our partner for 100 percent of their IT needs.

That story exemplifies a larger trend of businesses outsourcing IT support as technology evolves at a breakneck pace, security threats mutate, and finding tech talent becomes more challenging. Fifty-nine percent of companies say it’s difficult to hire skilled IT workers, and spending on managed services increased from 15 percent of IT budgets in 2020 to 18 percent this year, according to The 2023 State of IT report from Spiceworks Ziff Davis.

If you’ve opted to outsource and work with a managed service provider (MSP), you still have a major decision to make. The next choice you must carefully consider is whether to take the path of fully managed or co-managed IT services. Here’s what you should know about each option and how to identify the best arrangement for your business, based on our 20+ years in IT and insights from our partners.

Fully managed IT services: Pros and cons

Agreeing to fully managed IT services means you’ll completely relinquish oversight of all things IT to an external entity. Handing over the reins entirely to an MSP generally comes with the following advantages:

• Lower costs since you’ll only pay for the resources you need and eliminate expenditures related to maintaining internal IT staff (hiring, benefits, etc.)
• Access to a broader range of technology and cybersecurity expertise compared to a smaller in-house IT department
• Lower data breach risk level due to access to highly skilled security professionals
• Strategic consulting services from experts who offer third-party perspectives on your business

However, fully outsourcing your IT also comes with some potential drawbacks:

• Lack of direct control over your systems and data
• No physical proximity to your internal staff for issue resolution (which is only applicable if your team members work on-site)

It’s important to note that these pros and cons can vary depending on the specific MSP involved and the details of your business operations.

Co-managed IT services: Pros and cons

With co-managed IT services, you get “the best of both worlds” by combining internal IT staff with support from an MSP, according to ChannelE2E. This model of IT support has increased in popularity in recent years as businesses dealing with budget restrictions and a shortage of tech talent seek to maintain optimal operations. Notable pros of co-managed services include the following, according to Datto and our experience in the industry:

• Retaining some level of control over your IT systems and data
• Access to high-level security and technology expertise
• Lower odds of experiencing a data breach

There are possible downsides to any solution or service, though. If you choose a co-managed support model, you could run into these problems:

• Incompatibility between the service provider’s systems and your internal ones
• Conflict between your in-house staff and external support staff
• Discontent in your internal IT department due to not wanting outside help

Again, the pros and cons will vary depending on the service provider and your situation.

How to find the best IT service model for your business

Before you decide regarding fully or co-managed IT services, you should evaluate these key factors:

• Your budget
• Your current in-house IT staff status, openness to outside collaboration, and skillset
• Your company’s security and compliance needs
• Your short- and long-term organizational objectives

We have connections with various leading IT service providers in our partner network, and our technology consultants can rapidly identify options that align with your needs and goals. Drawing on our decades in the industry and background as a managed service provider, we can leverage our expertise to offer insights into the best course of action for your business.

Take the first step toward finding your ideal IT service provider today by calling?877-599-3999?or emailing [email protected] to connect with our consultants.