Fully Managed IT Services vs Co-managed IT Services

Think you need a managed service provider (MSP) for your small- or medium-sized business, but are unsure whether you need fully managed services or co-managed IT? The choice between these models depends on your business’s internal IT expertise and available resources. Let’s explore how these IT support services work. 

Table of Contents

What are Fully Managed IT Services?

Fully managed IT services is a comprehensive solution where the MSP takes full responsibility for all IT functions – from day-to-day support to long-term strategic planning.  

This approach suits businesses that lack internal IT resources or that want to outsource all their IT needs.

Discover what should be included in managed IT services. 

What are Co-managed IT Services?

There are some common myths around what co-managed IT is and is not. Essentially, co-managed services provide a collaborative approach where the managed IT services firm works alongside an internal IT team to provide:

  • Additional support
  • Specialized expertise
  • Strategic IT consulting

Gar Whaley, Teal CRO and Cofounder, explains what that might look like in action: 

“Co-managed IT services is a situation where we sit down with a client and look over the technology solutions and determine which tasks they want us to handle,” said Gar.

“So, for instance, they might have us manage their cybersecurity – pushing patches, doing the MDR, doing the antivirus, helping with compliance. All those security-related tasks.” 

“Meanwhile, they handle everything in level one help desk with some bolted-on hours per month for any escalations they need,” explained Gar.  

This model is ideal for businesses that already have an IT department but need assistance in areas like:  

  • Cloud Management 
  • Cybersecurity  
  • Compliance 
  • AI 

Key Differences Between Co-managed and Fully Managed IT Services

When choosing the right technical support for your business, it’s essential to understand the differences between co-managed and fully managed. These models differ significantly in terms of responsibility, control, scalability, and cost structure.  

Let’s explore how each approach addresses unique business challenges and how they can support your organization’s goals. 

Responsibility & Control

Co-managed IT Services

Imagine you’re running a busy restaurant. During regular business hours, your in-house team handles all the tasks seamlessly – taking orders, managing the kitchen, and ensuring a smooth dining experience. But what happens during a sudden surge in customers or when a key staff member is absent? 

Co-managed IT works like hiring temporary staff during rush hour. Your team handles the core activities like project management, while the additional staff fills gaps – ensuring no one is overwhelmed. You’re still in control but have the support you need to keep things running smoothly. 

Fully Managed IT Services

In contrast, fully managed IT services are like having an external management company oversee the restaurant’s entire daily operations. They hire staff, manage the kitchen, maintain supplies, and even plan the menu. This allows you to focus on your vision and growth, while the external team ensures smooth operations with little oversight on your part. 

Scalability & Flexibility

Co-managed IT

This model scales by leveraging a blend of internal and external resources. As your business grows, you can flex services up or down without the need to increase internal headcount but will require communication and careful planning with the managed IT services company. 

Fully Managed IT 

Fully managed services, on the other hand, offer greater scalability. All the IT responsibilities are handled by the IT support provider making it easy for your organization to handle rapid growth or unexpected demand surges without straining internal resources. 

Cost Considerations

Co-managed IT

The cost structure here is more flexible and can be tailored based on the shared responsibilities between the internal team and the MSP. This allows businesses to pay only for what they need, such as specialized expertise or overflow support resulting in variable costs depending on usage and requirements.

Discover how co-managed IT services can lead to cost savings. 

Fully Managed IT

These typically come with a fixed monthly or annual subscription fee, offering predictable costs for budgeting. Since the MSP handles everything, including day-to-day support and strategic planning, it’s a comprehensive solution that removes the need for hiring additional in-house IT staff. 

Managed IT Services Cost Guide eBook Mockup

Optimizing your IT investment starts here. Explore our MSP pricing guide to understand costs, factors, and models.  

Advantages and Disadvantages of Each Model

Co-managed IT gives your business the perfect blend of control and external expertise, making it ideal for those who want to retain internal oversight. The flexibility of this model allows you to pay for specific needs – such as advanced skills or overflow support – resulting in long-term cost efficiency. 

However, clearly defining roles and responsibilities between your internal team and the MSP is crucial to avoid inefficiencies. It’s equally important to ensure your team is on board, as some may feel uneasy about bringing in external support. Communicating the value of this partnership early on can foster collaboration and focus. 

On the other hand, fully managed IT services provide network management, proactive monitoring, operational efficiency, and strategic guidance. All of which frees you from day-to-day IT concerns – making the model ideal for businesses seeking a hands-off approach. Plus, it comes with predictable costs for easier budgeting.  

While you gain a comprehensive solution, you may lose some degree of control. This can be a concern if you prefer having hands-on involvement. Proactive communication with potential managed IT providers can alleviate these concerns and ensure a smooth integration with your business. 

Addressing Internal IT Struggles

Small business IT teams often find themselves overwhelmed because they’re often juggling daily support tasks and complex projects. This strain leads to longer ticket response times, a growing backlog, and reduced focus on strategic initiatives like digital transformation. 

If your team is constantly “putting out fires” rather than innovating, it’s a clear sign that additional support may be needed. Co-managed IT services can step in to alleviate this pressure by handling overflow tasks, implementing security measures, and enabling your internal team to refocus on strategic growth. 

By collaborating with managed service provider companies, your IT department can regain control and achieve a healthier balance—resulting in greater productivity and job satisfaction. 

IT Team Overwhelmed Checklist Mockup

Is your IT department overwhelmed? Discover if outside support can reduce burnout and boost efficiency with our free questionnaire. 

How Each Model Helps Businesses Meet Compliance Regulations

When navigating complex regulations, choosing the right IT service model can make all the difference. Let’s explore two scenarios and see how each model addresses distinct compliance challenges. 

Small Healthcare Provider

MediWell Health, a small clinic, must comply with HIPAA’s strict data protection rules. They have an internal IT team, but they’re stretched thin managing day-to-day support requests. To meet compliance needs, they opted for co-managed IT services.  

Now, their managed IT support provider handles the security monitoring and compliance auditing, while the in-house team manages the daily operations. This synergy ensures they maintain HIPAA compliance without overburdening their team. 

Midsized Financial Firm

FinGuard Financial, a midsized investment firm, faced the challenge of meeting SOX and PCI DSS compliance without an internal IT team. To tackle this, they secured a three-year fully managed IT services contract, gaining a complete solution that includes strategic IT guidance and regulatory expertise. 

Their MSP now manages all aspects of their IT covering:  

  • 24/7 Monitoring 
  • Help Desk Support 
  • Project Execution  
  • Strategic Planning 

This partnership ensures compliance and boosts growth, all while eliminating the need to recruit IT professionals and significantly reducing costs. 

Use Cases: Which Service Model is Right for You?

If you’ve read the article up to this point, you probably have a solid understanding of which service model fits your business. But if you’ve jumped straight here, no worries! Here’s a quick breakdown:

Fully managed IT services are likely right for you if…

…you lack internal IT support or have limited IT expertise. An MSP will provide you with complete management, 24/7 support, and strategic guidance, ensuring that you can still leverage exceptional technology solutions without the need for recruiting in-house talent.  

Additionally, this model is also suitable for organizations that require around-the-clock monitoring and quick resolution to prevent downtime or operational disruptions. 

img featured 20 Signs eBook mockup

Your business may need managed IT services if you relate to a lot of these signs. Discover if managed services are the solution to your IT challenges.

Co-managed IT services are likely right for you if…

…you have established IT professionals that need additional expertise or support. This model allows your teams to maintain control while benefiting from external skills, resources, and scalability.  

It’s a great choice for companies experiencing temporary IT staff shortages or those looking to tackle specialized initiatives without overwhelming their internal team. 

21 Red Flags Checklist Icon

Choosing the right co-managed IT partner is crucial to the success and security of your business. Don’t let common red flags go unnoticed! 

Choosing the Right IT Service Model for Your Business

When deciding between these models, it’s important to consider which solution best aligns with your business operations. Both offer distinct advantages, whether it’s the hands-off approach and predictable budgeting of fully managed services, or the flexibility and control of co-managed solutions. 

Once you’ve figured out what model your business needs, it’s time to locate the right service provider. 

Finding the Right Managed Service Provider

When looking for the best managed IT service provider, it’s important to partner with one that understands your organization’s unique challenges. 

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Use this checklist to make choosing the right managed service provider for your organization easy and stress-free.

How Teal Can Help: We're a Managed IT Support Company

Teal provides national and local managed IT services tailored for SMBs nationwide. Our premier managed and co-managed IT solutions ensure your business receives exceptional support, wherever you are, and whenever you need it.  

With over 25+ years of experience, we’re here to elevate your organization to heights you never thought imaginable. We were recently ranked among the top managed services providers 

“We’re not equity-backed, and what we’re trying to deliver to the small and medium-sized businesses is an IT department that does all IT aspects for them.” 

Teal Co-managed IT Services Success Story

Since 2020, Teal has strategically delivered co-managed IT services to a construction company. They were struggling with poor service delivery from another managed service provider and decided to find a partner whose services were aligned with their business goals. 

This led them to a partnership with Teal. This partnership resolved over 15 major issues that they had with their prior vendor in a matter of hours or a couple of days – all previously unknown to the company’s IT Manager.  

“Teal has been knocking everything out of the park with us.”
IT Manager, Mechanical Construction
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