Outsourcing your IT to a managed services provider can be a great fit for businesses looking to hand everything over to an external group of experts. However, the fully outsourced model isn’t right for everyone. Co-managed IT services can be a perfect fit for a company that wants to keep their internal IT team, but wants to fill their identified gaps with services from an MSP.
IT teams are responsible for countless business-critical tasks, from maintaining the network to keeping servers up and running. And while IT teams have become more commonplace in recent years, the reality is that many businesses are still struggling to keep up with the pace of change. IT teams are often understaffed and overworked, leading to a slew of issues ranging from user support to data breaches needing immediate attention. As businesses increasingly rely on IT to stay competitive, many are turning to a co-managed model that helps internal IT teams supplement specific areas of need.
The urgency around co-managed IT solutions is backed by data. According to IBM’s 2023 Cost of a Data Breach Report, the average cost of a data breach has reached $4.45 million—a 15% increase over three years. With IT talent increasingly difficult to attract and retain, and cyber threats growing more sophisticated by the month, organizations of all sizes are turning to co-managed IT services as a strategic way to bridge critical capability gaps without the overhead of additional full-time hires.
Defining Co-Managed IT Services
Co-managed IT services is a partnership between an internal IT team and an external IT provider (typically referred to as a Managed Services Provider or MSP).
Both parties develop and implement a customized plan on how they will best work together to manage and maintain the client’s IT infrastructure. This partnership allows businesses to fill gaps in their IT department by outsourcing specific complementary knowledge and services to an MSP.
This arrangement can benefit businesses that do not have the resources or experience to manage their IT infrastructure alone. By working with an MSP, they gain access to a larger pool of expertise and resources, which can quickly optimize the efficiency of their IT operations and ensure business continuity. In addition, the agreements are usually available on a monthly basis and include built-in flexibility, making it easy for organizations to budget for their IT needs.
Co-Managed IT Services vs. Fully Managed IT vs. In-House IT
| Feature | Co-Managed IT | Fully Managed IT | In-House IT Only |
|---|---|---|---|
| Keep Internal IT Team | Yes | No | Yes |
| MSP Fills Skill Gaps | Yes | Yes — Fully | No |
| Control Over IT Strategy | High | Low | Full |
| 24/7 Expert Coverage | Yes (via MSP) | Yes | Difficult |
| Monthly Cost vs. Full In-House | Lower | Lower | Higher (salaries) |
| Scalability | High | High | Limited |
| Best For | Businesses with an internal IT team needing supplemental support | Businesses wanting to fully outsource IT management | Large enterprises with sufficient internal IT resources |
How Do Co-Managed IT Services Work?
Co-managed IT services bring together the best of both in-house and outsourced IT management, providing your business with enhanced efficiency and improved productivity. If you decide to move forward with an MSP in a co-management relationship, you will:
- Audit your internal IT department and determine your strengths and weaknesses, including experience, knowledge, skill sets, tools, resources, and more.
- Set departmental goals and decide which services and resources you should outsource to meet those goals.
- Partner with a reputable IT provider that can best complement your in-house IT team.
Usually, an in-house IT team remains responsible for day-to-day tasks, and the provider overlays expertise, guidance, and IT support in various capacities. Because every IT team is unique, you can tailor your relationship with an MSP to your current and future business needs. The typical responsibilities that are split between the two parties include cybersecurity, monitoring, maintenance, patch management, updates and upgrades, cloud management, help desk support, application management, data backups and redundancy, firewall management, disaster recovery, training, project management, reporting, and more.
By sharing the workload, co-managed IT solutions can help lighten the load on your in-house team while ensuring that all of your IT needs are met.
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How Do Co-Managed IT Services Work?
Understanding exactly what co-managed IT support covers helps businesses make more informed decisions about an MSP partnership. While every engagement is customized, most co-managed IT support agreements include some combination of the following services:
Co-Managed Services Breakdown
| Service Category | Typical MSP Responsibilities | Typical In-House Responsibilities |
|---|---|---|
| Cybersecurity | Threat monitoring, incident response, security audits, vulnerability management | Security policy enforcement, user access management, employee training |
| Help Desk / IT Support | After-hours coverage, Tier 2-3 escalations, overflow support | Day-to-day user requests, VIP support, on-site issues |
| Cloud Management | Cloud migration, architecture, optimization, cost management | Day-to-day cloud operations, user provisioning |
| Patch Management | Automated patching, vulnerability assessment, remediation | Change approval, scheduling, exceptions, vendor coordination |
| Network Monitoring | 24/7 remote monitoring, alerting, performance analysis | On-site troubleshooting, hardware management, cabling |
| Disaster Recovery | Backup strategy, DR planning, testing, documentation | Business continuity planning, communication plans |
Your co-managed IT provider should work with your team to define the scope of each service area based on your specific gaps, budget, and goals. The most effective co-managed IT solutions are those tailored to complement—not compete with—your internal team’s strengths.
Who Needs Co-Managed IT Services?
Many businesses have adopted the co-managed model for their IT needs. Here are a few reasons IT teams turn to co-managed IT services:
- Small or Overworked IT Teams: The challenges of running a successful IT department can be quite complex for businesses with a small or overworked IT team. That’s why many IT teams turn to MSPs for supplemental support.
- New Projects: New projects assigned to an IT department can cause major internal issues, especially when the scope and complexity of the project are outside the typical purview of the current team. IT teams need both the time and the resources to take on a new project as they can’t afford to lose a foothold on any of their important daily tasks. The beauty of co-managed IT services is that they work with short-term new projects and IT departments that are constantly hit with new projects.
- Needed Expertise: When businesses know that outside resources have the expertise and experience far exceeding their internal team, it makes sense to have an MSP complement your staff. In a co-managed arrangement, a business can customize where and how that expertise is delivered, as every environment is different.
5 Signs Your Business Needs Co-Managed IT Support
Not sure if co-managed IT support is right for your organization? Here are five clear indicators that your business could benefit from a co-managed IT partnership:
- Your IT team is reactive, not proactive. If your team spends most of their time putting out fires rather than planning for the future, you’re likely understaffed or under-resourced. Co-managed IT support absorbs the overflow so your internal team can focus on strategic initiatives.
- You’re experiencing frequent downtime or security incidents. Recurring outages and breaches are a clear sign that your current IT resources may not be sufficient to keep pace with today’s evolving threat landscape.
- Your team lacks specialized expertise. From cloud architecture to advanced cybersecurity, some areas require deep specialization. A co-managed IT provider can supply certified experts without the cost of full-time hires.
- You’re struggling with regulatory compliance. HIPAA, PCI-DSS, CMMC, and SOC 2 requirements are complex and constantly evolving. A co-managed IT partner helps ensure your organization stays compliant without overburdening your internal team.
- Your IT costs are unpredictable or rising. If hiring, training, and retaining IT staff is straining your budget, a co-managed IT services model can deliver predictable monthly costs and significant long-term savings.
Pros and Cons of Co-Managed IT Services
7 Advantages of Co-Managed IT Services
Using an MSP to complement your existing IT team can be an excellent match for your business. You can reap the benefits of a third-party provider’s expertise and resources while keeping control and ownership of your IT operations. Here are a few benefits a co-managed model can provide:
- Operations Control: Co-management of IT services with an external provider can be a complex relationship for an internal IT team as it takes work and communication from both parties. By taking an active role in co-management, you can ensure that your internal IT department continues to ‘call the shots.’
- Less Management Responsibility: For many organizations, the best way to manage the responsibilities of keeping systems up and running and ensuring data security is to partner with a co-managed IT services provider.
- Keeping Current With Trends: The landscape of IT and cybersecurity is constantly changing, making it hard to stay ahead of the curve to keep systems running smoothly and data safe from attacks. Managed service providers can bear the burden of staying up to speed on everything happening in the IT world so their clients don’t have to.
- 24/7 Support: By being available 24/7, your MSP can quickly respond to and resolve any IT issues. This ensures that businesses can continue operating smoothly without the worry of downtime.
- Built-In Flexibility and Scalability: In a co-managed IT relationship, MSPs are on standby, waiting to be called in to deliver flexible and scalable solutions to help businesses keep up with changing needs as they grow.
- Save and Reallocate Hiring Costs: The constant cycle of hiring and training new staff can be costly and time-consuming. MSPs help businesses avoid hiring headaches by providing the flexibility to scale their workforce up or down as needed.
- Increased Security: Managed security providers allow organizations to focus on their core competencies while leaving their data security in the hands of experts.
3 Potential Disadvantages of Co-Managed IT Services
While there are clearly some fantastic benefits that MSPs can provide in a co-managed IT partnership, there are still some obstacles to overcome if you are looking into this model for your business. Here are some challenges you might face:
- Choosing the Right Partner: With so many options out there, it’s important to take the time to research your options and find the company that has the tools, experience, flexibility, and scalability that best fits your needs.
- Culture: Any business looking to partner with an MSP should ensure that they find a good cultural fit, aligning on communication styles, service expectations, and shared values.
- Compatibility: It is always a good idea to make sure the potential partner understands additional technologies you may adopt in the future to ensure the MSP can keep your systems running smoothly down the line.
How To Choose the Right Co-Managed IT Partner
If you’ve decided co-managed IT is right for your enterprise, you’ll want to assess your current operations to help pick the right partner. This internal audit includes assessing strengths and weaknesses, setting departmental goals, and deciding what to outsource. With this knowledge in mind, you can better assess your MSP options based on the following criteria.
- Cost – When selecting a partner to co-manage your IT infrastructure, you should find a provider that can work within your budget.
- Partnership Clarity – While your in-house IT team shares the responsibility of managing the IT systems, processes, and strategies, there are many different service models in the co-management space. Therefore, it is crucial to pick a partner that can genuinely complement your internal team.
- Experience – When deciding on a co-managed IT provider, it is critical to thoroughly research their experience to make sure they are the right MSP for your business. It is a good idea to consider not just their experience, but also their referrals, testimonials, and online reviews.
- Flexibility, Scalability, and Adaptability – Flexibility, scalability, and adaptability are three essential qualities of an MSP. After all, you want a partner that can grow with you as your business expands!
- Local or National? – Choosing between a local and national MSP has its advantages and disadvantages, from size, flexibility, resources, and customizability of service.
Ready to explore co-managed IT services for your business?
Frequently Asked Questions About Co-Managed IT Services
What is the difference between co-managed IT and fully managed IT services?
Co-managed IT services maintain your internal IT team while supplementing their capabilities with a managed services provider (MSP). Your team retains strategic control and handles day-to-day operations, while the MSP fills skill gaps, provides 24/7 monitoring, and delivers specialized expertise. Fully managed IT services involve handing complete IT management to the MSP, with no internal team involvement. Co-managed IT is ideal for organizations that want to preserve their internal staff while gaining access to additional resources and expertise.
How much do co-managed IT services cost?
The cost of co-managed IT services varies depending on the number of users, devices, and services required. Most MSPs offer monthly pricing that is significantly more cost-effective than hiring additional full-time IT staff—the average IT professional costs $75,000–$120,000 per year in salary alone, not including benefits and overhead. Contact Meriplex for a custom co-managed IT quote tailored to your environment and budget.
What industries benefit most from co-managed IT solutions?
Co-managed IT solutions benefit a wide range of industries including healthcare (HIPAA compliance), financial services (PCI-DSS, SOX), manufacturing (OT/IT convergence), legal (data security and confidentiality), and government contractors (CMMC compliance). Any industry where IT is business-critical but internal resources are limited can benefit from a co-managed IT provider.
How do I know if my business needs co-managed IT support?
Your business likely needs co-managed IT support if: your IT team is stretched thin and can’t keep up with user requests, you’ve experienced security incidents or compliance gaps, you’re planning a major project that exceeds your team’s current bandwidth, or you want 24/7 monitoring and coverage without adding full-time headcount.
Can co-managed IT services help with cybersecurity?
Yes — cybersecurity is one of the most common drivers for adopting co-managed IT services. A co-managed IT provider can deliver advanced security capabilities including 24/7 threat monitoring, vulnerability assessments, penetration testing, endpoint detection and response (EDR), security awareness training, and incident response—all working alongside your existing internal team.
How do I find a reliable co-managed IT provider?
Start by auditing your internal IT gaps and clearly defining the services you need to outsource. Look for an MSP with industry-specific experience, verifiable certifications, transparent pricing, and strong client references. Evaluate SLA terms, escalation processes, and cultural fit. Meriplex has been delivering co-managed IT solutions to businesses nationwide — contact us today to learn how we can strengthen your team.
