Outsourcing IT through a managed IT services provider (MSP) has become increasingly popular across industries. The market is expected to reach $557 billion by 2028, reflecting its growing appeal. Co-managed IT services enable organizations without internal IT departments to optimize their IT budgets while accessing expert IT resources. 

For those with IT departments, outsourcing some IT tasks to an MSP or augmenting their internal team with co-managed IT services is a strategic choice.

While co-management is gaining traction, its effectiveness depends on execution and can have both pros and cons. 

In this article, we will examine how co-managed IT services work and provide guidance on selecting the right IT partner to meet your needs.

What Are Co-Managed IT Services?

Co-managed or co-sourced IT services refer to a collaboration between a business and an external IT service provider to complement its internal IT team. This model allows businesses to take advantage of the expertise and resources of an external provider while retaining control over certain aspects of their IT operations.

To use the ‘explain it to me like I am 5’ analogy for a better understanding, imagine your family has a big puzzle to solve, but it’s too complicated for you to do alone. So, you ask for help from your older brother or sister, who knows much about puzzles. They work with you to solve the puzzle together.

In the same way, when a company has a complex IT problem, they might not have all the skills or time to solve it on their own. So, they ask for help from a company that specializes in IT services. 

Together, they work as a team to fix the problem and ensure everything runs smoothly, just like you and your sibling working together on the puzzle.

This collaboration can encompass many IT functions, including network management, cybersecurity, cloud services, help desk support, infrastructure management, and more. The level of involvement and responsibilities can be tailored to suit each organization’s unique requirements and capabilities.

How Does Co-Managed IT Work?

Co-managed IT works through a partnership between a business’s internal IT team and an external IT service provider. 

Let us take a more detailed look at this:

1. Assessment and Planning

The process begins with assessing the business’s current IT infrastructure, capabilities, and needs. This helps identify areas where the external IT provider can complement the internal team.

2. Customized Solutions

Based on the assessment, the external IT provider develops customized solutions tailored to the business’s requirements. This may include support for network management, cybersecurity, cloud services, help desk support, infrastructure management, and more.

3. Collaborative Approach

The internal IT team and the external provider work collaboratively to implement and manage the agreed-upon solutions. This collaboration can involve sharing responsibilities, resources, and knowledge to achieve common goals.

4. Flexibility and Scalability

Co-managed IT services offer flexibility and scalability, allowing businesses to adjust the level of external support based on their changing needs. This can include increasing support during peak periods or scaling back during quieter times.

5. Monitoring and Support

The external IT provider typically offers ongoing monitoring and support to ensure the smooth operation of IT systems. This can include proactive maintenance, troubleshooting, and addressing issues as they arise.

6. Guidance

In addition to day-to-day support, the external IT provider may offer strategic guidance to help the business align its IT initiatives with its overall business objectives. This can include advice on technology investments, upgrades, and optimizations.

7. Communication and Reporting

Effective communication is crucial in co-managed IT services. The internal and external teams need to maintain clear lines of communication to ensure that goals are aligned, issues are addressed promptly, and progress is reported regularly.

Benefits of Co-Managed IT

Co-managed IT services offer several benefits for businesses looking to optimize their IT operations and support. Some of the key benefits are:

1. Access to Specialized Expertise

Businesses can tap into the specialized skills and knowledge of the external IT provider, which may not be available in-house. This can include expertise in areas such as cybersecurity, cloud services, network management, and more.

2. Cost-Effectiveness

Co-managed IT services can be a cost-effective solution compared to fully outsourcing IT or maintaining a large in-house team. Businesses can pay for the services they need, reducing overhead costs associated with full-time employees.

3. Improved Efficiency

Businesses can optimize their IT operations and workflows by leveraging the combined strengths of internal and external teams. This can lead to improved efficiency, productivity, and overall performance.

4. 24/7 Support and Monitoring

Co-managed IT services often include 24/7 support and monitoring, ensuring that IT systems are always up and running. This can help minimize downtime and disruption to business operations.

Who Should Consider Co-Managed IT Services?

Co-managed IT services can benefit many businesses, especially those with specific IT needs or challenges. 

Here are some key factors that indicate when a business should consider co-managed IT services:

1. Limited Internal IT Resources

Businesses with a small or limited internal IT team may benefit from co-managed IT services to supplement their existing capabilities. This can provide access to a broader range of expertise and resources without the need to hire additional full-time staff.

2. Need for Specialized Expertise

Businesses with specific IT needs, such as cybersecurity, cloud services, or network management, may require specialized expertise that is not available in-house. Co-managed IT services can provide access to such expertise on an as-needed basis.

3. Desire for Strategic IT Guidance

Businesses that seek strategic guidance and advice on their IT initiatives can benefit from the strategic partnership model of co-managed IT services. The external IT provider can offer insights and recommendations to align IT with business goals.

4. Cost-Effectiveness

Co-managed IT services can be a cost-effective solution compared to fully outsourcing IT or maintaining a large in-house team. Businesses can pay for the services they need, reducing overhead costs.

5. 24/7 Support and Monitoring

Businesses that require 24/7 support and monitoring for their IT systems to minimize downtime and disruption to operations can benefit from co-managed IT services.

How do you choose the right co-managed IT service provider?

Choosing the right co-managed IT provider is crucial for ensuring your business’s IT needs are effectively met. 

Here are some key factors you should consider while selecting a co-managed IT provider:

1. Assess Your Needs

Start by assessing your business’s specific IT needs and priorities. Identify areas where you require additional expertise or support, such as cybersecurity, cloud services, network management, or help desk support.

2. Evaluate Expertise and Experience

Look for a co-managed IT provider with expertise and experience in the most critical areas of your business. Consider their track record, client testimonials, and case studies to gauge their capabilities.

3. Service Offerings

Ensure that the co-managed IT provider offers the services you need, both in terms of breadth (e.g., cybersecurity, cloud services) and depth (e.g., level of support, responsiveness).

4. Scalability and Flexibility

Choose a provider that can scale their services to meet your business’s changing needs. They should be flexible enough to adjust the level of support and resources based on your requirements.

5. Cost-Effectiveness

While cost should not be the sole determining factor, consider the overall value provided by the co-managed IT provider in relation to their pricing. Ensure that the pricing structure is transparent and aligns with your budget.

6. References and Reviews

Ask for references from current or past clients to get a sense of the provider’s reputation and the quality of their services. You can also look for online reviews and ratings.

Conclusion

Our flexible model at ScaleupAlly for Co-Managed IT Services enables internal IT departments to utilize our expertise where it’s most beneficial, whether for specific needs or across the entire organization. We assure IT Managers that their critical systems are continuously monitored and maintained around the clock, allowing them to rest easy. With our team of experienced IT experts, we consistently deliver exceptional results. Contact us today to discover more.

Frequently Asked Questions (FAQs)

Q: How do co-managed IT services differ from fully outsourced IT services?

In a fully outsourced IT model, the entire IT function is outsourced to an external provider, while in co-managed IT services, the internal IT team retains some control and responsibility for managing certain aspects of IT. Co-managed IT services offer a collaborative approach, combining the strengths of both internal and external teams.

Q: How can businesses successfully partner with a co-managed IT provider?

To ensure a successful partnership, businesses should clearly define their IT needs and goals, communicate openly with the co-managed IT provider, establish clear expectations and service level agreements (SLAs), foster a collaborative environment between internal and external teams, and regularly review and assess the partnership’s effectiveness.

Q: What are the typical pricing models for co-managed IT services?

Co-managed IT services can be priced based on various models, including fixed monthly fees, hourly rates for specific services, or a combination of both. Pricing may also vary based on the level of support and services required by the business.