Co-Managed vs Managed IT: Which to Choose

managed it

Are you struggling with this fundamental question: “Should I outsource our entire IT function or keep some capabilities in-house?” Choosing the right IT support model can make or break your business operations, but so many decision-makers are left wondering where to start.

The answer isn’t always straightforward. Both managed IT and co-managed IT services offer distinct advantages, but the right choice depends on your current infrastructure, internal resources, and business objectives. Our tech experts will break down all the info you need to make the best decision for your organization.

What Is Managed IT?

Managed IT services involve outsourcing all of your IT operations to an external provider. This model transfers responsibility for all technology management, maintenance, and support to a third-party team.

Under a managed IT arrangement, the provider handles:

  • Network infrastructure management: Complete oversight of servers, networks, and connectivity
  • Security operations: Implementation and monitoring of firewalls, antivirus protection, and threat detection
  • 24/7 system monitoring: Continuous surveillance to identify and address issues before they impact operations
  • Helpdesk support: Technical assistance for all end-user requests and system issues
  • Strategic planning: Technology roadmap development aligned with business goals

The primary benefit is predictable costs. Organizations pay a fixed monthly fee rather than dealing with variable expenses from break-fix scenarios. This model also provides access to enterprise-grade expertise without the overhead of maintaining a full internal IT department.

What Is Co-Managed IT?

Co-managed IT services work alongside your existing internal IT team rather than replacing it. This collaborative approach supplements your current capabilities with specialized expertise and additional resources.

The flexibility of co-managed IT allows businesses to:

  • Fill knowledge gaps: Access specialized skills your team may lack, such as cybersecurity or cloud architecture
  • Extend coverage: Provide after-hours and weekend support without requiring internal staff to be on-call
  • Handle overflow: Manage increased workload during peak periods or special projects
  • Add strategic depth: Bring in senior-level consulting for technology planning and decision-making

Organizations retain control over day-to-day operations while leveraging external expertise for specific functions. Your internal team remains the first point of contact, with the co-managed provider supporting defined areas based on your needs.

Common Misconception: “Co-Managed IT Replaces Internal Teams”

A common myth about co-managed IT is that it’s just a way to replace your internal team—that’s simply not true. This idea can make IT staff nervous and hesitant to consider co-managed solutions, even if it means they’re drowning in work.

Co-managed IT is all about working together. It’s meant to support and strengthen your current team, not replace it. You still keep control over your core systems and day-to-day tasks, while the co-managed provider steps in with extra expertise and bandwidth where you need it most.

Here are a few ways this partnership can come to life:

  • Security projects: Your team sets user access and handles policies, while the co-managed provider brings in advanced threat detection and handles security audits.
  • Cloud migrations: Your staff handles the application testing and user rollouts, while outside experts design the new infrastructure and take care of the migration process.
  • Disaster recovery: You create business continuity plans, while the provider manages backup systems and leads regular recovery drills.

With this approach, your internal IT pros get to focus on what matters most for your business—like driving new projects and big goals—instead of being buried in routine maintenance or complex tasks outside their specialty.

When Should I Choose Co-Managed IT Services?

When do co-managed IT services actually make sense? Here are a few situations where it’s a great fit:

  • Your IT team is small or maxed out: If your in-house team has the basics covered but can’t take on more projects or specialized work, co-managed IT brings in extra hands without the cost of hiring more full-time staff.
  • You’re dealing with complex tech: Rolling out advanced systems like SIEM, handling compliance, or managing multi-cloud setups often requires expertise your team might not have yet. That’s where outside specialists offer you the right level of support.
  • You need 24/7 IT coverage: Maybe you need round-the-clock monitoring and support, but staffing full shifts internally isn’t realistic. A co-managed provider can fill those gaps in a budget-friendly way.
  • You want more skills without breaking the bank: Co-managed services let you tap into expert knowledge and specialized skills—much more cost-effective than bringing in new full-time hires, especially if you don’t need those skills every day.
  • You’re in a highly regulated industry: If meeting standards like HIPAA, CMMC, or PCI-DSS is critical, having outside experts who know the ins and outs of compliance can be a huge help.

At the end of the day, if your team knows the basics and just needs a boost—not a replacement—co-managed IT could be exactly what you’re looking for.

When Should I Choose Fully Managed IT?

Fully managed IT services make the most sense in a few key scenarios:

  • You don’t have an internal IT team: For startups and small businesses without any dedicated IT staff, managed services offer instant access to a full range of IT support, without the hassle of trying to build a department from the ground up.
  • Outsourcing is more cost-effective: Many organizations find that they can access advanced IT capabilities at a lower total cost through managed services, compared to the expense of creating and maintaining an in-house team.
  • You want to focus on your core business: If managing IT is taking attention away from what matters most, turning the reins over to specialists allows your leadership team to concentrate fully on business priorities.
  • Your business needs to scale quickly: When rapid growth is on the horizon, managed services let your IT infrastructure keep up, eliminating the delays of recruiting and training in-house talent.
  • Predictable costs are important: With a fixed monthly fee, managed IT services remove the uncertainty of unexpected tech expenses and help keep your budgeting straightforward.

In short, if you don’t have any existing IT infrastructure or simply want IT management completely off your plate, fully managed services are usually the way to go.

Making the Right Choice for Your Business

The decision between co-managed and managed IT services ultimately depends on your current situation and goals. Evaluate your internal capabilities honestly, consider your growth, and determine how much control you need over IT operations.

If you have a capable internal team that needs support in specific areas, co-managed IT services provide the flexibility to enhance without replacing. If you’re starting from zero or prefer to outsource the entire IT function, fully managed services deliver comprehensive coverage under a single provider.

Ready to explore which model fits your business? Discover how Helixstorm’s Managed IT Services can support your technology needs, whether through full management or collaborative co-managed support.