Co-Managed IT vs Managed IT Services- What's the Difference?

The global managed services market is expected to grow from USD 365.33 billion in 2024 to USD 511.03 billion by 2029, reflecting strong demand across industries for external technology support. As organizations look to keep pace with shifting security needs, remote work demands, and cloud adoption, many are rethinking how IT services are delivered.

This often comes down to a choice between co-managed IT services and fully managed IT services. While both models offer technical support and strategic assistance, they differ in structure, responsibilities, and overall business alignment. Understanding these differences can help organizations find a service model that suits their resources, growth plans, and existing in-house capabilities.

This guide helps evaluate both options to identify the best co-managed IT services for specific operational needs.

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Understanding Co-Managed IT

Co-managed IT services refer to a collaborative approach for services where an organization’s internal IT team partners with an external managed service provider (MSP) to share responsibilities and manage specific aspects of the IT infrastructure and services. This model allows businesses to leverage the expertise of both their internal team and an external provider.

Key Features and Benefits

The following are some notable advantages of co-managed IT services:

Shared Responsibility: Both internal and external teams work together, with responsibilities divided based on skills, availability, and business priorities.
Flexible Support Structure: Organizations can adapt the scope of support, such as help desk services, infrastructure management, or cybersecurity, based on specific gaps or changing demands.
Enhanced Continuity: With two teams in place, there’s always coverage during vacations, turnover, or high-demand periods, reducing the risk of service disruption.

Challenges and Considerations

The following are some critical considerations with the co-managed service model:

Team Integration: Aligning workflows, priorities, and processes across internal and external teams may take time and require mutual trust.
Defined Roles and Communication: Clearly established roles, reporting structures, and communication protocols are essential to avoid confusion or delays.
Consistency in Tools and Processes: Differences in software, ticketing systems, or documentation practices may require adjustments to maintain consistency and visibility across both teams.

Understanding Managed IT

Managed IT involves outsourcing the entirety of an organization’s IT operations and infrastructure management to an external Managed Services Provider (MSP). In this model, the MSP assumes full responsibility for monitoring, managing, and maintaining the IT environment.

Key Features and Benefits

The following are some advantages of managed IT services:

Comprehensive Outsourcing: Organizations benefit from the complete outsourcing of IT tasks, allowing them to focus on core business activities while the MSP handles all IT-related functions.
Expertise and Specialization: Managed IT services provide access to a wide range of specialized skills and expertise, ensuring that the organization’s IT infrastructure is managed by professionals with extensive knowledge and experience.
24/7 Monitoring and Support: MSPs typically offer round-the-clock monitoring and support, which enhances the business’s operational efficiency and IT security.

Challenges and Considerations

The following are some challenges of incorporating managed IT services:

Loss of Control: Entrusting all IT operations to an external provider may result in a perceived loss of control over certain aspects of the organization’s IT environment.
Dependency on the MSP: Organizations must carefully consider the potential risks associated with dependency on an external provider for critical IT functions and support.
Limited Flexibility: Some managed IT plans may not easily adjust to the specific preferences or routines of internal teams, which can make day-to-day collaboration feel less personalized.

Also Read: How to Choose the Best Co-managed IT Provider?

The Main Differences between Co-Managed IT and Managed IT

The table below outlines the main differences between co-managed IT services and fully outsourced models, helping organizations evaluate the best co-managed IT service providers for their needs.

Aspect	Co-managed IT services	Managed IT services
Collaboration	Involves a collaborative approach where the internal IT team and an external managed service provider (MSP) work together to manage specific aspects of the IT infrastructure and services.	Entails the complete outsourcing of an organization’s IT operations and infrastructure management to an external MSP.
Responsibility	Responsibilities are shared between the internal IT team and the external provider.	The external MSP assumes full responsibility for all IT-related functions.
Customization	Allows for tailored support to address specific gaps in the organization’s internal IT capabilities.	Typically offer standardized solutions with less customization.
Scalability	Offers scalability, enabling organizations to adjust the level of external support based on fluctuating IT demands and business requirements.	May offer less adaptability to changing internal needs, as the organization’s IT operations are fully handled by the external MSP.
Control	The organization retains a higher level of control over its IT operations.	The organization may perceive a loss of control over certain aspects of its IT environment, as all IT operations are outsourced to the external provider.
Expertise and Specialization	Allows organizations to leverage the expertise of both their internal IT team and the external provider.	Provide access to a wide range of specialized skills and expertise through an external MSP.
Flexibility	Offers flexibility in tailoring the IT support structure to address specific internal IT gaps, providing a more adaptable approach to managing the organization’s IT environment.	May offer less flexibility in tailoring the IT support structure as the organization’s IT operations are fully outsourced to the external MSP.

Choosing the Right IT Support Model for Your Business

Choosing between managed IT services and co-managed IT services depends on how much internal support an organization has, where the gaps lie, and how IT contributes to broader business goals. Each model offers distinct advantages in control, expertise, and cost structure.

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Imagine IT supports both models with a focus on strategic alignment, clear communication, and strong cybersecurity. Our DEFCON IT Support System helps maintain responsiveness during peak demand, while the Security Shield protects against evolving threats. We offer managed IT services in Sterling, Zeeland, Bloomington, Wichita, and Garden City, providing regional businesses with reliable, localized support.