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Co-Managed IT Services vs. Full Outsourcing: Which is Best?

Between rising costs, tighter regulations, and technological advancements, IT management is more complicated than ever. To cope with the increasing pressure, Canadian businesses are turning to managed service providers (MSPs). These third-party experts monitor, maintain, and optimize the IT environment, allowing the company to focus on growth.

But there are several models available, and it’s crucial to choose the right one. Should you fully outsource your digital infrastructure? Or is it best to hedge your bets with a co-managed approach?

What Are Co-Managed IT Services?

Co-managed IT solutions provide an alternative for businesses who don’t want to rely completely on a third party. Under this model, you retain in-house knowledge and skills while still outsourcing certain tasks. Internal and external teams collaborate closely to ensure that your digital environment is secure and efficient.

Benefits

  • Less expensive than fully outsourced services
  • Provides additional oversight and control
  • Allows your existing team to focus on critical projects
  • Access to a larger pool of expertise

Disadvantages

  • Responsibilities can become muddy or confusing
  • You still need to be involved in IT management to some extent

Discover the benefits of managed IT for small businesses

What is Fully Outsourced IT?

Fully outsourced IT is when an MSP takes responsibility for nearly all aspects of the digital infrastructure, replacing the function of an in-house team entirely. Depending on the specific package chosen, this can include support, optimization, vendor coordination, security, procurement, maintenance, and long-term planning.

Benefits

  • IT management is their concern, not yours
  • Clear accountability and escalation procedures
  • Highly scalable

Disadvantages

  • Less direct control
  • Higher cost than co-managed services

Choosing the Right Approach

When choosing between fully outsourced IT or co-managed support, here are some important questions to ask:

Do you already have an in-house team?

If internal IT staff are already present, then adopting a co-managed model might be more efficient than firing all the employees you already have.

Note that your pre-existing team also has strong familiarity with your infrastructure, which an outsider would need time to develop.

If you don’t have in-house staff, and you’re considering outsourcing, then fully managed services are likely the best choice.

Are recurring issues pulling your staff away from strategic work?

If your team spends more time dealing with unexpected outages than they do contributing to business growth, you need outside help. How much depends on how severe the issue is. Particularly bad cases may require fully managed services for at least a brief time, until the situation is back under control.

What’s your budget?

The more services you require, the more you will need to pay. If your budget is limited, it might be best to choose co-managed services for the time being. You can always upgrade to a fully outsourced model later.

Is the business currently experiencing rapid growth?

In-house staff are harder to scale up than managed services, and an MSP will only do so much under the co-managed model. If your business is growing quickly, consider investing in fully outsourced services.

What are your security and compliance needs?

Some industries (such as finance, healthcare, and law) have much stricter security and compliance requirements than others. This inherently requires additional oversight, which makes fully outsourced IT a much more attractive proposition.

Give Your Team the Support They Need to Thrive

For most Canadian businesses, the question is no longer whether outsourcing is the right choice. It’s how much should be outsourced. By shifting between cooperative and fully managed IT, you can adjust external services to the exact level you need at a given moment, gaining all the benefits without wasting money. This flexibility is invaluable for small and growing businesses.
Finding the right IT support is often a challenge, especially if your team works from multiple locations. Fortunately, this is yet another problem that outsourcing can solve. Learn how by reading this article.

FAQs

What’s the Difference Between Co-Managed Information Technology Services, and Fully Outsourced IT?

Co-managed information technology (IT) services are when you hire a third party to assist your existing in-house team with digital management tasks. Fully outsourced IT (also known as fully managed services) is when the MSP takes over everything.

What are the Benefits of Co-Managed IT?

Co-managed IT bridges the gap between your existing capacity and your digital needs. It provides just enough support and expertise to maintain steady growth, while still maintaining control.

What are the Benefits of Fully Managed IT?

Fully managed IT is designed for businesses who don’t already have an in-house team. The MSP handles everything, allowing you to focus exclusively on running the business without thinking about your technology.

What are Co-Managed IT Networking Services?

Co-managed IT networking services adopt the same approach as other cooperative services, except they focus on your networks. Because of this, they will address connectivity concerns and similar issues, but not other parts of your IT infrastructure.

Which is Cheaper: Co-Managed or Fully Managed IT

Co-managed services are generally less expensive than fully managed IT, as it requires fewer resources. However, there is a tradeoff that may make fully outsourced IT the better choice for some companies.