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Understanding the Difference: Co-Managed vs Managed IT Services

IT services are now essential and indispensable for businesses to run their operations effectively and effectively compete. It is not feasible for most organizations, especially small and medium enterprises, to employ a team of IT professionals to serve their needs. This is where managed IT services and co-managed IT services come in. Managed IT services are a form of outsourcing in which an organization transfers the responsibility of managing its IT infrastructure to a third-party provider. But what distinguishes those two strategies? The differences are going to be described in this article.

What is Managed IT Services? 

Managed IT services involve a business hiring a third-party vendor known as the managed services provider or MSP to handle some or most of the business’s IT processes. The MSP provides constant monitoring, management, and problem-solving for a portion or wholesale of the client’s IT environment.

This typically includes functions such as:

Computer equipment (servers, computers, phones, printers, etc. )

– Software support

– Data backup and disaster recovery

– Network monitoring and security

– Technical support and IT help desk

Akin to outsourcing, a managed service MSP implies that the provider works on behalf of the in-house IT department. Whenever there are IT problems, the MSP provides experienced engineers and technicians to tackle the issues as a proactive measure and when necessary. This enables the business to be able to get enterprise level IT support for a fixed monthly fee without the need to hire more staff.

Benefits of Managed Services:

– Predictable monthly costs

– Availability of specialized skills not readily achievable or cost-effective to acquire internally

– Less overall expenditure on IT infrastructure

– Enhanced cybersecurity systems

– Flexibility to incorporate or remove services required

What is Co-Managing IT Services? 

Co-sourced IT services are a blend of the company’s own internal IT employees plus outsourced managed services provided by an MSP in a ‘co-sourced’ arrangement.

In this model, the client company also employs its own IT staff to maintain critical internal IT assets, networks, applications, and computers on a regular basis. An MSP is a specialized or additional layer of IT services that focuses on specific aspects for higher efficiency, security, reliability, and availability.

Areas commonly handed by an MSP in a co-managed arrangement include:

– Based on the results of the evaluation, the most recommended measures are Server monitoring and Data backup.

– Additional help for help desk lines

– Mitigation of security threats

– Integrated network and cloud systems

Benefits of Co-Management:

– Maximize the internal team’s strengths while minimizing the gaps

– Centralize the decision-making process and maintain control over most of the day-to-day decisions.

– Integrate key talent from MSP at minimal cost

– Allow the internal team to focus on their primary responsibilities

– The fluidity that allows the firm to increase or decrease the services offered.  

Key Differences Summarized

To recap, here are the main differences between managed services and co-managed services:

Managed IT Services:

– All IT functions are outsourced to MSP The consensus of this paper is that all IT functions are outsourced to an MSP (managed services provider) due to the benefits that are associated with this approach.

– The MSP is entirely responsible for all the hardware, software, security, and backup, guaranteeing uptimes, and handling all sorts of problems.

– In this case, the business relies on the MSP’s engineers for all technical decisions.

– The monthly fees are charged for a complete package of predefined managed IT services.

Co-Managed IT Services:

– Day-to-day IT processes continue to be managed by in-house IT personnel

– An MSP offers unique technical support and tools whenever necessary

– The MSP complements rather than replaces completely

– Services and monthly fees are not fixed and can depend on the current situation.

Choosing the Right Model

Which option is more suitable for small to midsize businesses – fully managed or co-managed? Both viewpoints are valid.

Outsourcing fully managed IT services lets you cheaply offload the cost of dealing with recurrent IT disruptions. However, some firms may wish to retain local employees assuming operational infrastructure responsibilities. The ideal model is based on factors including your wallet, skills deficiency, number of heads and degree of control over your technology environment that you require.

A large number of companies begin with a selection of simple managed services and then transition to co-managed arrangements once the business has scaled enough to hire internal IT personnel. It is crucial to find the right partner provider to ensure that either of the arrangements will put into harmony with your organization’s goals and objectives.

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