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Co-Managed IT vs. Managed IT: Deciding the Best IT Management Structure for Your Business

Written by DVD Networks | Oct 15, 2024 1:22:51 PM

Many business leaders are looking to optimize spending and discover more cost-effective ways to get best-in-breed IT solutions and support without spending a fortune. IT outsourcing is an alternative to employing expensive in-house team members or investing heavily in major technology upgrades.

Co-managed IT and managed IT are two popular options for outsourcing infrastructure, operations, security, maintenance, and more.

Understanding Co-Managed IT

Co-managed IT is a hybrid solution between a fully managed service provider (MSP) and completely in-house management. With co-managed IT, an MSP augments internal resources with additional support, next-generation cybersecurity expertise, or specialization.

For example, internal teams may handle day-to-day operations while the MSP works on long-term strategic projects such as compliance regulations, cloud migrations, and ongoing vulnerability scans.

Here are a few co-managed IT implementation examples.

  • A memory care facility might leverage co-managed IT to perform a massive migration and update for foundational systems.

  • A mid-sized manufacturer needs extra hands on deck during seasonal uptick to closely monitor network uptime, prep a disaster recovery plan, and do everything possible to avoid business downtime.

Benefits of Co-Managed IT

Co-managed IT offers multiple benefits, from potential cost savings to enhanced flexibility and scalability.

  • Enhanced Flexibility and Control: Organizations have more control and visibility over critical operations while still getting access to specialized services and industry-leading automation technology. Internal teams can handle everyday tasks, while external experts plan, implement, and monitor long-term initiatives.

  • Leveraging External Expertise While Maintaining Internal Oversight: For small to midsize businesses, employing a full team of IT specialists would be incredibly expensive. Outsourcing with managed IT allows businesses to leverage high-quality external expertise while balancing costs and maintaining internal oversight.

  • Scalability to Meet Changing Business Needs: An MSP relationship can easily scale up or down in response to demand from seasonal fluctuations, slow periods, or rapid downsizing or expansion.

Understanding Managed IT

Managed IT is fully outsourced to an expert third-party provider. It's a comprehensive solution that provides everything from network monitoring to infrastructure maintenance, cybersecurity, cloud services, application management, and even help desk support.

Here are a few different examples of when managed IT might work best.

  • A fast-growing startup who wants to focus solely on core business operations without getting bogged down with IT tasks

  • A locally owned and operated senior living community that doesn't want to employ any internal IT team members

Benefits of Managed IT

For businesses that want to completely outsource IT, fully managed services provide comprehensive support, cost predictability and reduction, and access to advanced technology. Take a look at some of the benefits of co-managed IT for businesses.

  • Comprehensive IT Support and Services: The MSP handles everything IT-related so businesses don't have to worry about trivial tasks, such as password resets, or major projects, such as new software implementation.

  • Cost Predictability and Reduction: Bundling services within a single provider often reduces costs, forms long-term relationships, and offers a level of cost predictability. 

  • Access to Advanced Technology and Resources: Like with co-managed IT, businesses get access to advanced technology such as automated threat monitoring and inbox detection and response without buying these technologies themselves.

Key Differences Between Co-Managed IT and Managed IT

Managed IT is fully controlled and maintained by an outside expert service provider. Co-managed IT is a hybrid collaboration between internal teams and external resources. Co-managed IT and managed IT have key differences regarding structure, cost, and collaboration.

  • Co-managed IT is a collaborative structure between an internal team and an external MSP.

  • Managed IT is fully outsourced with potentially minimal client involvement.

  • Managed IT can be extremely comprehensive, leading to a higher price tag.

  • Co-managed doesn't offload all IT tasks, so costs are lower.

  • Co-managed IT still provides a level of control and coordination for internal teams.

  • Managed IT firms operate as the full experts in charge of operations.

Use Case Scenarios

So, when should you choose co-managed IT over fully managed services? Some scenarios include:

  • A local franchise could experience massive growth and expand to the entire Southwest region, needing extra resources to set up new locations, create unified communications, and launch new business systems across dozens of locations

  • A local law firm that wants to expand into two or three different cities but doesn't want to hire internal IT experts

A Senior Living client with over 200 locations leveraged a managed IT strategy with DVD Networks to improve patient quality of life and provide dependable tech services. Local healthcare businesses can also utilize co-managed IT with 24/7 security and monitoring, hybrid and private cloud solutions, and disaster recovery plans.

Choosing the Right IT Management Structure for Your Business

Consider these points when choosing the right IT management structure for your business.

  • First, assess your business needs and goals.

  • Consider critical factors such as internal IT capabilities, budget, long-term projects, and customer needs.

  • Audit and evaluate existing IT infrastructure to identify outdated, legacy platforms and tools.

  • Ask for recommendations from peers, experts, and stakeholders to find specialized IT management services within your industry.

  • Obtain leadership buy-in and any potential budget constraints from the beginning.

Future Trends in IT Management

Rapid cybersecurity advancements, a rise in sophisticated cybercrime, new automation IT tools, edge computing, and advanced Internet of Things (IoT) integrations are all poised to shake up the future of IT management. Working with an expert provider and choosing the right IT management structure for your company sets your business up for early adoption and implementation of exciting new technology that could fuel your business revenue and growth.

Emerging Technologies and Their Impact

The global cloud computing market is expected to hit $1.44 trillion by 2029, and artificial intelligence will generate between $2.6 billion and $4.6 billion annually in productivity and value. Both of these emerging technologies will improve the automation of routine tasks, offer a new level of integration and scalability, and increase responsiveness and resource optimization. Leading IT service providers will most likely monitor and quickly adopt these technologies, delivering early benefits to their customers.

Predictions for the Future of IT Management Structures

Regardless of the exact management structure, future-proofing your IT builds a strong competitive advantage for decades to come. It provides a secure, foundational layer to your business that easily adapts to innovations in artificial intelligence, machine learning, automation, and cloud computing.

What IT Management Structure Is Right For You?

The right IT management structure for your business entirely depends on your organization's size, internal resources, budget, and long-term goals. Talk with DVD Networks for an expert recommendation customized to your business.