As a small or medium-sized business owner, you know that a good IT infrastructure and a qualified team are essential to your day-to-day operations and business development. However, managing and training your staff, keeping your infrastructure up to date, and ensuring that it is protected and grows in line with your needs all require investments in both time and money. What if I told you that you could reduce your costs while maintaining and even improving your IT services?

Let me introduce you to co-managed IT services. Flexible and cost-effective, these services enable in-house IT teams to collaborate with external managed IT services providers to ensure optimal running and protection of IT infrastructures. As an entrepreneur, this allows you to focus on growing your business while reducing some of your costs and risks. In this article, I explain in more detail what co-managed IT services are and why they could potentially be right for your business.

What Are Co-managed IT Services?

Co-managed IT services are a hybrid approach in which companies retain an in-house IT team while partnering with an external IT service provider. This model is particularly attractive to small and medium-sized businesses looking to optimize their IT operations.

With this arrangement, companies can retain control of their core IT functions while outsourcing specific tasks such as cloud solutions, server management or cybersecurity. The in-house IT team and the external service provider then work in collaboration, combining forces to improve overall network security and performance.

This balanced approach enables companies to reduce costs while gaining access to specialized expertise and advanced technology. The company’s own IT staff continues to oversee essential operations, while the external supplier provides additional support and specialized IT services that can evolve the company’s needs.

Perhaps you’re wondering how the tasks are divided between the two parties. Well, you decide!

For example, your in-house IT team may be responsible for day-to-day IT operations, such as configuring user accounts, troubleshooting, and maintaining hardware and network connectivity. They may also be responsible for strategic IT planning and controlling your core systems and sensitive data.

As for your Managed Service Provider (MSP), they can handle more specialized IT tasks. They can carry out proactive monitoring and maintenance to detect potential problems early and manage advanced security, cybersecurity threats, and the overall safety of your data.

With collaborative IT management, your internal team focuses on the core activities you’ve defined, while the MSP provides the support and expertise to manage more complex IT challenges and ensures round-the-clock monitoring of your technology, even while your IT team is on vacation.

Differences Between Co-Managed IT, Fully Managed IT and In-House IT

Criteria	Co-Managed IT	Fully Managed IT	In-House IT
Responsibilities	Shared between internal team and MSP	Fully outsourced to MSP	Handled entirely by internal team
Flexibility	High, can scale services as needed	Less flexible, majority of services managed by MSP	Limited flexibility, reliant on internal resources
Control & Oversight	Internal team retains control over core systems	MSP has most control, limited oversight	Full control by internal team
Cost Structure	Cost-effective, paying only for specific services	Higher costs for fully managed services	Can be costly with full-time staff and resources

When deciding on the best IT management option for your business, you have three choices – Co-Managed IT, Fully Managed IT, and In-House IT. Your benefits will depend on your business size, budget, and IT needs.

Let’s look at how they compare.

Responsibilities

Co-Managed IT: Your internal IT team handles the day-to-day operations, while the Managed Service Provider (MSP) manages more complex or specialized tasks. Examples are IT security services, remote monitoring and management, or business continuity and disaster recovery.
Fully Managed IT: All IT functions are outsourced to an external MSP. The MSP is responsible for everything.
In-house IT: All IT responsibilities, including support, maintenance, and strategic planning, are by your internal team.

Flexibility

Co-Managed IT: Co-managed IT allows for the greatest flexibility, allowing you to scale IT support up or down as needed.
Fully Managed IT: This model is convenient but less flexible. Most IT functions are outsourced, with only a few (if any) basic functions are maintained in-house, often by one or two people.
In-House IT: The internal team has complete control, but scalability can be challenging if they lack the resources or expertise to manage everything

Control & Oversight

Co-Managed IT: Your internal IT team retains control over critical operations while the MSP supports specific areas. This approach balances internal oversight with external expertise.
Fully Managed IT: The MSP handles most of the IT control, and your business has limited direct oversight over daily operations.
In-House IT: The business keeps complete control of its IT. It can oversee every aspect of its IT infrastructure.

Cost Structure

Co-managed IT: Co-managed IT is typically more cost-effective than hiring more full-time staff. It provides external support where needed and avoids the cost of a fully managed solution.
Fully Managed IT: This can represent a significant investment since the MSP manages all aspects of your organization’s IT infrastructure but is typically still more cost-efficient than hiring additional in-house staff.
In-House IT: Costs can vary depending on the size of the internal team and the resources needed. In-house can require significant investment in staffing, equipment, and training.

What are the Benefits of Co-Managed IT Services?

More and more SMBs are finding it harder to keep IT technology up-to-date and efficient, especially with how fast technology evolves. That is why it makes perfect sense for many businesses to consider collaborative IT management as a solution. When you don’t have a dedicated IT team, you gain multiple benefits from shared IT services, which I share below.

Flexibility and Scalability: Co-Managed IT allows you to scale your IT resources up or down based on your needs. This ensures you only pay for your required services as your business grows.
Cost-Effectiveness: Instead of hiring additional staff, co-managed IT services offer specialized services at a fraction of the cost, helping you manage expenses more efficiently.
Access to Expertise: An MSP has experienced IT professionals who have the latest tools and expertise you may not have, providing you with the most up-to-date methods and knowledge.
Enhanced Security and Compliance: Co-managed IT can reassure you with advanced security protocols. This will enable you to comply with industry regulations and protect your business from cyber threats.
Improved Focus on Core Business – By offloading IT responsibilities to a trusted partner, your team can stay focused on growing your business without getting distracted by technical challenges.

Learn more about co-managed IT for your business

Is Co-Managed IT Right for Your Business?

To determine whether co-managed IT services are right for your business, it’s first important to analyze your current situation. Once you’ve made this assessment, you’ll be in a better position to choose the appropriate services required to meet your company’s immediate and future needs. Here are three key elements I suggest you analyze to find out which types of IT management services are best suited to your business. If you need help, Info-Tech Montreal offers free IT assessments and IT consulting services for SMBs.

Assessing Your IT Needs

The first step is to conduct an IT needs assessment. This will allow you to analyze the current state of your IT infrastructure and identify any gaps or areas needing improvement. You’ll want to evaluate hardware, software, networks, cybersecurity measures, and your IT team’s current workload and expertise.

For example, if your internal team is overwhelmed by routine maintenance or your security measures aren’t keeping current according to industry standards, those may be signs that external support is needed. Aligning IT resources with your overall business objectives is critical to ensure your IT strategy supports growth.

Considering Your Business Size and Industry

Co-managed IT is ideally suited for SMBs with a limited internal team that still want to maintain control over their IT operations. For example, collaborative IT management is ideal if you are in an industry where cybersecurity is non-negotiable, or compliance measures are strict, such as healthcare, finance, or manufacturing.

By partnering with a managed service provider, you can benefit from specialized expertise in regulatory standards such as Law 25 in Quebec and the Personal Information Protection and Electronic Documents Act (PIPEDA) in Canada, and better protect sensitive data.

Cost-Benefit Analysis

The final step you should take is a cost-benefit analysis. A cost-benefit analysis (CBA) compares the advantages (benefits) and disadvantages (costs) that are associated with a particular decision, project, or policy. In this case, you would compare the costs of hiring a managed IT service provider to what you would pay to do everything in-house.

While co-managed IT might have an upfront investment, the long-term benefits usually outweigh these expenses. Reduced downtime, improved security, and access to the latest technology updates can produce substantial long-term cost savings. An even greater benefit is that your in-house team will no longer be consumed by mundane day-to-day tasks, leaving them more time to focus on your company’s growth and strategic initiatives.

Ultimately, deciding whether co-managed IT services are right for your business comes down to your specific needs and goals. This collaborative approach offers the best of both worlds for SMBs looking to scale, reduce costs, and maintain control over IT operations. Only after a thorough assessment of your current situation and future needs will you be able to decide whether co-managed IT is right for your business.

Conclusion

As a business owner, you know that to stay competitive, you need to make smart, strategic decisions about your resources. Co-managed IT services offer a flexible solution that combines the best of both worlds: you retain control through your in-house team while having access to specialized expertise and cutting-edge technology when you need it.

If you’re struggling to keep up with rapid technological change, looking to strengthen your cybersecurity, or reducing your IT costs without sacrificing quality, co-managed IT services can help. The idea is not to replace your current IT team but rather to provide them with additional support and expertise to drive your business growth.

If, after reading this article, you are seriously considering the option of co-managed IT services for your business, Info-Tech Montreal would be pleased to discuss your unique needs and the solutions we can offer to help you. We offer IT managed services to small and medium-sized businesses in the Greater Montreal area, as well as IT consulting and IT security services, among other things.

What Are Co-Managed IT Services, and Are They Right for Your Business?