The Pros and Cons of Co-Managed IT Services

IT outsourcing has become popular across all industries, with the market expected to reach $557 billion by 2028. When considering IT services management, weighing the pros and cons of managed services for your business is crucial.

Businesses without an IT department can maximize their IT budget while retaining expert IT resources using managed IT services. Organizations with an in-house IT department can outsource some of their workload to a managed IT services provider (MSP) or supplement their internal team with co-managed IT services. Co-managed IT services offer a unique approach combining the benefits of outsourcing while retaining control over your IT environment. 

Explore the concept of co-managed IT services and learn the benefits they bring to the table so you can determine if they are suitable for your business.

What are Co-Managed IT Services?

Co-managed IT services are a collaborative and strategic partnership between an organization and a managed services provider, such as National Technology Management (NTM). Unlike traditional fully outsourced IT services, co-managed IT services allow businesses to maintain a certain level of control over their IT operations while benefiting from the expertise and resources of an external partner. 

This unique model allows organizations to tap into the specialized skills and knowledge of the managed services provider, working hand-in-hand with their in-house IT team. Through this collaboration, businesses can share the workload, responsibilities, and decision-making processes related to their IT infrastructure, applications, and support services. 

It enables organizations to leverage external expertise and resources to enhance their IT capabilities, implement innovative solutions, and effectively manage their IT environment, all while maintaining visibility and involvement in key decision-making processes.

The Pros of Co-Managed IT Services

Transitioning to a co-managed IT services model offers several benefits that can positively impact your business. Some key benefits include:

Expertise and Skills

Co-managed IT services provide businesses access to a team of skilled professionals with diverse technical expertise. Partnering with a managed services provider allows organizations to tap into a wealth of knowledge and experience. These experts complement the in-house IT team, bringing specialized skills and insights that enhance the organization’s IT capabilities. 

Whether it’s addressing complex technical challenges, implementing new technologies, or staying up to date with industry best practices, the collective expertise of the co-managed IT services team ensures efficient and effective management of the IT infrastructure.

Scalability and Flexibility

Co-managed IT services offer businesses the scalability and flexibility needed to adapt to changing requirements. As organizations grow, their IT needs evolve as well. With a co-managed approach, businesses can easily scale their IT operations based on demand. 

With the ability to swiftly align resources and expertise, the managed services provider can seamlessly adapt to changing needs, whether it involves expanding infrastructure, deploying new applications, or adjusting support services.

This flexibility allows businesses to stay agile, seize growth opportunities, and optimize their IT investments without the burden of managing these changes alone.

Cost Savings

Cost savings are a significant advantage of co-managed IT services. Sharing responsibilities with a managed services provider can help businesses optimize their IT budget and reduce the burden on internal resources. With a co-managed model, organizations can choose specific areas where they need external support, enabling them to pay only for the services required. 

This approach eliminates the need for substantial upfront investments in IT infrastructure, staffing, and training. Leveraging the expertise and resources of the managed services provider can help businesses achieve cost efficiencies while maintaining high-quality IT services.

Focus on Core Competencies

Managing IT infrastructure and operations can be time-consuming, especially for businesses operating outside the technology sector. Co-managed IT services allow organizations to offload routine IT tasks and day-to-day operations to a trusted partner. 

This can help businesses redirect their internal IT team’s focus toward core competencies and strategic initiatives that drive growth and success. With the managed services provider handling routine maintenance, troubleshooting, and support, the in-house team can dedicate their time and expertise to innovative projects, improving operational efficiency and delivering value to the business.

Enhanced Security and Compliance

Data breaches and cybersecurity threats are significant concerns for businesses today. Co-managed IT services can enhance the organization’s security and compliance posture by leveraging the expertise of specialized professionals in the field. The managed services provider implements security measures, conducts regular security audits, and ensures compliance with industry regulations. 

By proactively addressing security vulnerabilities, monitoring for threats, and implementing best practices, the co-managed IT services team helps protect valuable data and sensitive information, reducing the risk of security breaches and potential legal and financial consequences.

Access to Advanced Technology and Tools

Keeping up with rapidly evolving technology can be a challenge for businesses. Co-managed IT services provide access to advanced tools and technologies that might otherwise be expensive or difficult to acquire. Through their partnerships and investments, managed services providers can offer their clients cutting-edge infrastructure, software, and hardware. 

This access to state-of-the-art technology ensures that businesses remain competitive, efficient, and able to leverage the latest innovations in their industry. The co-managed IT services team can assist in implementing and managing these advanced solutions, providing organizations with a technological edge to support their growth and success.

The Cons of Co-Managed IT Services

While co-managed IT services offer several benefits, it’s also important to consider the potential drawbacks. Learn how NTM mitigates these risks.

Loss of Control

One concern when adopting co-managed IT services is the perceived loss of control over IT operations. NTM mitigates this risk through our co-managed plans. These plans provide transparency and open communication channels, ensuring businesses maintain visibility and involvement in decision-making processes. 

NTM embraces a collaborative approach, allowing organizations to balance outsourcing specific tasks and keeping control over critical aspects of their IT environment. By involving clients in decision-making and providing regular updates and reports, NTM ensures businesses have the authority and oversight to align IT operations with their strategic objectives.

Communication and Coordination Challenges

Working with an external managed services provider can introduce communication and coordination challenges. However, NTM understands the importance of effective communication and mitigates these challenges through dedicated points of contact. We provide businesses with a team of professionals who act as liaisons, facilitating seamless collaboration and communication. 

Regular meetings, status updates, and comprehensive reporting mechanisms are implemented to align expectations, ensure clarity, and keep all parties informed and engaged. NTM’s commitment to open lines of communication helps overcome potential hurdles and fosters effective collaboration between the organization and the managed services provider.

Potential for Misaligned Goals

When partnering with a co-managed IT services provider, ensuring alignment of goals and objectives is crucial. NTM addresses this potential challenge by taking the time to understand each client’s unique requirements and tailoring our services accordingly. We work closely with businesses to define shared goals, ensuring the managed services align with the organization’s strategic objectives. 

Our expertise and experience enable us to provide customized solutions that support the client’s growth and success. By establishing clear communication channels, setting expectations, and actively collaborating with clients, NTM ensures that goals remain aligned throughout the co-managed IT services partnership.

Security Risks

While cybersecurity is a concern in any IT environment, co-managed IT services can introduce additional security risks. However, NTM prioritizes security and takes measures to mitigate these risks. We use rigorous security measures and follow industry best practices to safeguard the infrastructure and data of our clients. 

This includes conducting regular security assessments, implementing security protocols, and providing proactive monitoring to detect and respond to potential threats. NTM stays current with the latest security trends and technologies, ensuring our clients’ systems are protected from evolving cyber threats.

Vendor Dependency

When relying on a co-managed IT services provider, there is a level of dependency on an external vendor. NTM strives to build long-term partnerships with our clients, fostering a relationship built on trust and reliability. By understanding the organization’s IT needs, NTM becomes a strategic partner. 

This approach reduces the risks associated with vendor dependency. NTM’s commitment to providing high-quality services, responsiveness, and consistent support ensures that businesses can rely on our expertise and establish a long-term partnership based on mutual trust and shared goals.

Factors to Consider When Choosing Co-Managed IT Services

Before deciding, evaluate several factors to ensure that co-managed IT services align with your business needs. Consider the following:

Industry and Regulatory Compliance

When choosing a co-managed IT services provider, consider their understanding of industry-specific compliance requirements. Different industries have unique regulatory frameworks and data protection standards that must be followed. Ensure that the provider you select has experience and skill in your specific industry and can demonstrate a track record of compliance. 

A knowledgeable provider will have in-depth knowledge of industry regulations such as GDPR, HIPAA, or PCI DSS. Adhering to these standards ensures that your business remains compliant and avoids legal or regulatory issues.

Service Level Agreements

Establishing clear and comprehensive service level agreements (SLAs) is vital in a co-managed IT services partnership. SLAs define the level of service, performance metrics, response times, and resolution expectations. Consider guaranteed uptime, incident response times, and escalation procedures when evaluating potential providers. 

NTM understands the importance of well-defined SLAs and collaborates closely with clients to establish mutually agreed-upon expectations. Our SLAs outline the responsibilities, deliverables, and performance standards, providing a framework for effective and efficient IT support.

Availability and Responsiveness

Prompt and reliable support is essential with IT services. Downtime or delays in addressing critical issues can impact your business operations. Evaluation of a co-managed IT services provider is crucial. Consider their support hours, response times, and their ability to handle emergencies. 

NTM prides itself on its commitment to availability and responsiveness. We offer 24/7 support and have a dedicated team of IT professionals ready to address any issues that may arise promptly. Our proactive monitoring and quick response times ensure minimal disruption to your business operations.

The Importance of a Cultural Fit

Choosing a co-managed IT services provider that aligns with your organization’s culture is essential for a successful partnership. A cultural fit ensures seamless collaboration, effective communication, and shared values. Consider factors such as work ethic, communication style, and the ability to understand and adapt to your company’s unique dynamics. 

NTM emphasizes building strong relationships with our clients and understands the importance of cultural fit. We take the time to understand your business’s culture and values, aligning our approach and communication style to ensure a harmonious partnership. A cultural fit fosters trust, collaboration, and mutual understanding, leading to a more productive and successful co-managed IT services relationship.

Is Co-Managed IT Right for Your Business?

As you carefully weigh the advantages and disadvantages of managed services, consider whether co-managed IT services are suitable for your business. This decision requires thoughtful deliberation and an understanding of your needs and goals. 

With our comprehensive understanding of co-managed IT services and a commitment to excellence, we offer the expertise, support, and customized solutions you need. Contact NTM today for a complimentary consultation to explore the potential pros and cons of managed services and find the optimal IT solution for your business.