Choosing Between Managed and Co-Managed IT Services: Finding the Ideal Solution for Your Business
In the ever-evolving digital landscape, businesses are constantly seeking efficient ways to manage their IT operations. Two popular service models that have emerged are co-managed and managed IT services. Both models offer unique benefits and drawbacks, and understanding them is crucial for making an informed decision.
What are Co-managed and Managed IT Services?
Co-managed IT services represent a partnership between a company's internal IT team and an external Managed Services Provider (MSP). This collaboration allows businesses to leverage their in-house knowledge and external expertise [1][5]. On the other hand, managed IT services involve full outsourcing, where the MSP assumes complete responsibility for the IT operations and infrastructure management [1].
Benefits and Drawbacks of Co-managed IT Services
Co-managed IT services offer several advantages, including flexibility and scalability, control, collaboration, and access to expertise and tools. By partnering with an MSP, businesses can quickly scale support based on their needs while retaining control over critical functions [1]. The collaboration also allows the internal IT team to augment their skills and focus on strategic IT initiatives while the MSP handles routine and specialized tasks [1][5].
However, co-managed IT services also have potential drawbacks. Dependency on the internal IT team's effectiveness and clear role definitions are crucial to avoid duplication or neglect of tasks [1]. Additionally, some organizations may find the collaboration logistics challenging, especially without a mature internal IT team [5].
Benefits and Drawbacks of Managed IT Services
Managed IT services provide proactive management, defined Service Level Agreements (SLAs), predictability, cost-effectiveness (especially for smaller organizations), and holistic IT support. The comprehensive coverage includes cybersecurity, cloud integration, backups, and more [3].
Yet, managed IT services also have disadvantages. Organizations may lose visibility and direct control over IT operations, which can be a concern for some businesses [1]. Additionally, the entire IT strategy and implementation are handled externally, which might misalign with specific internal goals [1].
Key Differences and Use Cases
Co-managed IT services offer a hybrid model combining in-house and outsourced IT functions, allowing internal IT teams to retain control over core systems or projects [1][5]. Managed IT services, on the other hand, represent a fully outsourced IT management by the MSP, with internal IT teams potentially being minimal or non-existent [3].
Co-managed IT services are ideal for organizations with existing IT teams needing additional support, expertise, or scalability without relinquishing control [1][5]. Managed IT services are suitable for companies wanting to offload all IT responsibilities to experts, often smaller firms or those without in-house IT [3][4].
Making the Right Choice
The choice between co-managed and managed IT services depends on various factors, including the size of the organization, its internal IT capabilities, control preferences, and budget considerations [1][3][5]. It's essential to weigh the benefits and drawbacks of each model and choose the one that best aligns with your business needs.
The Future of IT Services
The global expenditure on IT services is forecasted to reach $1.585 billion by 2024 [6]. As businesses continue to digitalize, the demand for efficient and reliable IT services will only grow. Understanding the differences between co-managed and managed IT services is a crucial step towards making the most of this digital transformation.
[1] TechTarget. (2021). Co-managed IT services vs. managed services: What's the difference? [Online]. Available: https://searchcio.techtarget.com/definition/co-managed-IT-services
[2] TechTarget. (2021). What is managed services? [Online]. Available: https://searchcio.techtarget.com/definition/managed-services
[3] TechTarget. (2021). Benefits of managed services. [Online]. Available: https://searchcio.techtarget.com/answer/What-are-the-benefits-of-managed-services
[4] TechTarget. (2021). Managed services vs. co-managed services vs. IT outsourcing: What's the difference? [Online]. Available: https://searchcio.techtarget.com/feature/Managed-services-vs-co-managed-services-vs-IT-outsourcing-What-s-the-difference
[5] CompTIA. (2021). Co-managed IT services: A solution for hybrid IT environments. [Online]. Available: https://www.comptia.org/content/co-managed-it-services-a-solution-for-hybrid-it-environments
[6] Grand View Research. (2021). Managed IT Services Market Size, Share & Trends Analysis Report By Component (Software, Services), By Deployment Model (Cloud, On-premises), By End-use (SMEs, Large Enterprises), And Segment Forecasts, 2021 - 2028. [Online]. Available: https://www.grandviewresearch.com/industry-analysis/managed-it-services-market
In the hybrid IT model, businesses can collaborate with Managed Services Providers (MSPs) through co-managed IT services, which provides access to expertise and tools while allowing them to maintain control over core systems or projects. In contrast, managed IT services involve full outsourcing to an MSP, offering proactive management, defined Service Level Agreements (SLAs), and cost-effectiveness particularly for smaller organizations, but at the potential cost of losing direct control over IT operations.
The choice between co-managed and managed IT services depends on several factors such as the size of the organization, internal IT capabilities, control preferences, and budget. By weighing the benefits and drawbacks of each model, businesses can make an informed decision that best aligns with their unique needs, contributing to the efficient management of their IT operations in the digital landscape.
