Co-managed IT services: Your IT team’s secret weapon

What is co-managed IT?

Co-managed IT is a hybrid model where an organization’s internal IT team collaborates with an external managed service provider. Here’s how it compares with managed IT and some examples of what it can look like:

What is managed IT?

Managed IT service is an outsourcing model where a third-party vendor takes responsibility for managing your entire IT infrastructure. This is the type of service that a managed service provider (MSP) like E-N Computers provides. We provide help desk support to users, remote monitoring, onsite service, backups, server management and monitoring, and most of the other services that a typical IT team in a large company would provide. We also provide strategic IT consulting, purchasing, hardware and software lifecycle management, and other services that help your business get the most out of your IT infrastructure while managing expenses.

“Co-Managed IT” simply means that an IT specialist in your organization takes responsibility for some of these services that we would typically provide in a fully managed IT plan. Below are some examples of co-managed IT models that our clients have used.

Co-managed IT with in-house user support

One option that some of our clients have opted for is to dedicate their internal resources to user/client support while using managed services for monitoring, maintenance, and IT strategy. If your organization is larger or your users are particularly sensitive to support request response times, this can be a good option to consider.

Any issues that the in-house user support specialist can’t handle can be escalated to the managed services provider for in-depth troubleshooting. Plus, the MSP would monitor servers, networking equipment, and other services and proactively fix any issues that arise. The result is a good balance between responsive in-person support and proactive maintenance and monitoring.

Co-managed IT with in-house information management

Another co-managed IT model that works well for our clients is insourcing information management while outsourcing other IT functions. Many organizations use ERP solutions, custom databases, or line-of-business apps that collect, store, and report data that’s critical to business strategy and operations.

Having a specialist on your team who knows your business, knows your data, and knows how to leverage that data in your business is a great use of resources. The outsourced MSP can then focus on making sure that the systems and infrastructure that run your ERP or business software are operating correctly and that issues are managed proactively.

For more details about internal roles that work well with outsourced IT, see What staff roles should coordinate with an MSP?

How much does co-managed IT cost?

Co-managed IT costs depend on the level of service and support that your organization needs, as well as the size of your organization – the number of managed endpoints or employees who use computers.

At E-N Computers, our regular managed IT services plan costs $125 per user per month. For companies that have an in-house IT specialist, we typically offer a discount of $50 per month, or $75 per user per month for co-managed IT service.

This price includes unlimited second-tier support (if your in-house person is a user support specialist), remote monitoring and management, an onboarding and stabilization project, ongoing strategic IT consulting (Virtual CIO/Fractional CTO), and more.

If you’d like to play with the numbers to compare the costs of inhouse IT, co-managed and fully managed IT services, these two articles can help:

How much does IT support cost? – Compares multiple times of IT support options and costs.

Should I outsource my IT department? (with calculator) – As noted in the title, you can use our calculator to compare the cost of hiring inhouse staff versus outsourcing to an MSP based on the number of users you have.

Why is a fully staffed, specialized IT team so important?

Many small- and mid-size businesses start out by looking for a “jack of all trades” IT specialist to hire. This idea is somewhat of a holdover from when computer systems were less complex and less integrated into the entire business.

Does this mean it’s no longer a good idea to find a generalist who can help with many different IT issues? No – having someone on staff who knows your business and who can respond quickly can be a valuable asset. But in order to properly manage the complexities of today’s IT landscape, he is going to need some help.

Consider a few of the reasons that specialized IT staffing is so important:

Cybersecurity threats and risks are at an all-time high – and growing

Cybersecurity has posed a risk to businesses ever since computer networks have been able to be exploited for fun or for profit. But in recent years, these risks have been compounded by a combination of increasing dependence on IT, increasing complexity of systems, and advanced threats backed by organized cybercriminals and hostile foreign powers.

These so-called “Advanced Persistent Threats” or APTs are organized, well-funded, and disciplined hacking groups that are constantly looking for new ways to exploit government organizations and private businesses for profit, espionage, or both. To combat these threats, good system design, organized documentation and change management, and solid incident response plans are needed. A multi-discipline team will be better equipped to face an APT than a solo engineer.

Think your company is too small to be targeted by an advanced threat actor? Many recent breaches and security incidents have focused on the supply chain – the smaller vendors that have access to valuable information or sensitive systems that threat actors want, but often lack the resources to implement good cybersecurity measures. These types of incidents can be even more devastating than a frontal assault on a big player – and can put your small business at risk of litigation, reputational harm, or worse.

IT systems are more complex than ever

When many of us started in IT, it was common for an entire company’s IT systems to be run from a single server. Microsoft’s Small Business Server software was enormously popular, including authentication, email, database and even web hosting in one package.

But times have changed, and the risks inherent to this single-server model are obvious. What happens if that server fails? How much would a day or two of downtime affect your company’s bottom line? Not to mention the issues with keeping such a server protected from external threats and security vulnerabilities.

This means that modern IT systems have more moving parts than ever – and that it takes specialized skills to both operate and secure these systems. Having a team of experts to call on who are familiar with these systems is more critical than ever.

Your business depends on IT more than ever

Even just a few years ago, IT could be viewed as a “nice to have” for many businesses. Your company may have been getting along fine doing things the old way – whether that was on paper, by hand, or with less-than-optimal computer and information resources. But the COVID-19 pandemic has accelerated what was already a growing trend toward making all businesses dependent on their IT systems for continued success.

Whether it’s enabling a remote workforce, a touchless buying experience, or embracing the use of data and analytics, these business trends are here to stay. If your IT can’t keep up, your business risks getting left behind. Having a team that can handle both day-to-day issues and big-picture strategy is crucial to maintaining competitiveness in today’s marketplace.

What should my internal team do?

One common question that we get asked is “If we buy co-managed IT service, what will my internal IT team do?” Some IT managers and solo IT specialists are reluctant to even investigate managed services because they think they’ll be put out of a job. But strategic use of both internal and external IT resources is the key to making a success of co-managed IT.

Specialization – The key to IT job satisfaction

As we mentioned earlier, it’s harder and harder to find a true “jack of all trades” IT person anymore. This is because most skilled IT professionals realize that they need to specialize in order to continue growing in their careers. It’s simply not possible to become an expert in every single technology, platform, or vendor that’s out there today. So, most IT specialists will seek out roles where they can develop their skills in one area or discipline.

When your small in-house IT team partners with a managed service provider, you’re giving them the opportunity to specialize in an area that will most benefit your organization. For example, if you’ve hired someone to maintain your databases and line-of-business apps, but they’re constantly interrupted by user support requests that are outside their job scope, they’re probably not going to be able to accomplish either one of those things very effectively – and will be headed for burnout. But If the user support requests are offloaded onto an MSP, your database admin will be able to focus on their chosen specialty, leading to better job satisfaction and performance.

The same can be true of an IT person who loves helping users with their problems. They may prefer the fast-pace challenge of getting users up and running quickly, but aren’t as interested in maintaining infrastructure, databases, and servers. By engaging an MSP to handle that work, it will help the user support person to focus on their specialty without neglecting the operational work that’s needed to keep your systems running.

Pros and cons of co-managed IT

Some of the benefits and drawbacks of co-managed IT are the same as those for fully managed IT services. Here are a few, along with the specific strengths and weaknesses of co-managed IT:

Pros of co-managed IT

Reduced costs: Managed services in general can reduce IT costs through efficiency. Co-managed IT offers a lower monthly fee. (Of course, you also have to include the cost of your in-house staff.)

Access to experts: Managed and co-managed IT gives you access to those hard-to-hire-for roles like cybersecurity and network engineering.

Around the clock support: Your internal team probably can’t work 24/7 (especially if it’s a team of one.) But an MSP can schedule coverage for after-hour support.

Consistent proactive monitoring and maintenance: Prevention is often the first thing that goes by the wayside when an internal team is overwhelmed. We have established processes to keep your systems up to date so you don’t have to.

Cons of co-managed IT

Feeling threatened: Thanks to bad experiences, some IT managers feel like MSPs are out to take their job. We believe an adversarial relationship doesn’t help anybody. There’s plenty of IT work to go around, and we’d much rather work with a friendly and involved in-house IT manager than not.

MSPs who drop the ball: Some managers have told is they’ve hired MSPs to reduce some of the first-level support requests they receive. But these requests end up coming to the in-house staff anyway. Thorough onboarding, documentation and clear roles and expectations can help prevent this.

We’ve had a few years to practice this and we outline some of these issues and solutions in the article How can inhouse IT work successfully with an MSP? 

Loss of control: Working with an outsourced IT company necessitates some loss of control as you will have to work with our established processes. However, having inhouse staff along with the outsources support still allows you flexibility to handle either your first-level support or your strategic projects however you like.

Next Steps: Learn More About IT Strategy and Staffing

One organization that has seen great results from co-managed IT is Roanoke, VA-based New Horizons Healthcare. In this case study (PDF link), find out how they were able to leverage managed services to provide support for more than 200 users with a single in-house IT person.

And if you’d like to learn more about our co-managed IT services, click here to view pricing and to get an instant quote for your organization. Fill out and submit the quote form on the pricing page, and a member of our team will contact you to set up a free consultation so you can find out if co-managed IT is right for your business.

• Running a Top-Notch IT Department (On-demand Webinar)

Here are more resources to help you compare your options:

• Running a Top-Notch IT Department (On-demand Webinar)
• How can in-house IT work successfully with an MSP?
• Should I outsource my IT department? (with calculator)
• C0-managed IT: Which staff roles should coordinate with an MSP?
• Are you spending too much time on your IT?
• Disadvantages of managed IT services
• Benefits of managed IT services
• What is included in managed IT services?
• 7 steps to choosing a managed IT services provider

One organization that has seen great results from co-managed IT is Roanoke, VA-based New Horizons Healthcare. In this case study (PDF link), find out how they were able to leverage managed services to provide support for more than 200 users with a single in-house IT person.

And if you’d like to learn more about our co-managed IT services, click here to view pricing and to get an instant quote for your organization. Fill out and submit the quote form on the pricing page, and a member of our team will contact you to set up a free consultation so you can find out if co-managed IT is right for your business.