Co-Managed IT vs Fully Managed IT: Which Is Right for Your Firm?

Not every professional services firm is ready to fully outsource IT.

Some have:

• an internal IT person
• a small IT team
• partial support already in place

This leads to a common question:

“Should we fully outsource IT — or work alongside an MSP?”

For firms with 25–75 employees in Oakville and the GTA West, the answer depends on internal capabilities, risk tolerance, and long-term goals.

Below is a clear breakdown of co-managed IT vs fully managed IT, including cost, structure, and when each model makes sense.

If you want to estimate the cost of a fully managed model, you can also use our IT Cost Calculator on the pricing page.

What Is Fully Managed IT?

Fully managed IT means the MSP is responsible for:

• helpdesk support
• proactive monitoring
• cybersecurity
• backups
• infrastructure management
• vendor coordination

Your internal team (if any) is not responsible for day-to-day IT operations.

This model is typically priced:

$175–$275 per user per month

What Is Co-Managed IT?

Co-managed IT is a shared model where:

• your internal IT team handles some responsibilities
• the MSP supports specific areas

For example:

Internal team may handle:

• user onboarding
• basic troubleshooting
• internal systems

MSP may handle:

• cybersecurity
• monitoring
• infrastructure
• escalations

It is a collaborative model.



Key Differences

Responsibility

Fully Managed IT

• MSP owns IT operations end-to-end

Co-Managed IT

• responsibility is shared
  

Complexity

Fully Managed IT

• simpler structure
• single point of accountability

Co-Managed IT

• requires coordination
• risk of gaps if roles are unclear
  

Cost Structure

Fully Managed IT

• predictable monthly cost
• all-inclusive model

Co-Managed IT

• variable pricing
• depends on scope of responsibilities

In some cases, co-managed IT may appear less expensive — but may require internal staffing costs.



When Co-Managed IT Makes Sense

Co-managed IT works well when:

• you have a capable internal IT person or team
• you want to retain internal control
• your internal team needs support in specific areas
• you want to supplement security or infrastructure management

It is often used as a transition model.



When Fully Managed IT Makes Sense

Fully managed IT is often the better option when:

• internal IT capacity is limited
• IT issues are recurring
• security requirements are increasing
• leadership wants predictable outcomes
• the business prefers external accountability

This model provides:

-clarity
-consistency
-reduced operational burden



Common Challenge With Co-Managed IT

The biggest risk in co-managed environments is:

unclear responsibility

This can lead to:

• delayed issue resolution
• gaps in security coverage
• duplicated effort
• confusion during incidents

Clear role definition is essential.



Case Study

A 60-person professional services firm had:

• one internal IT manager
• increasing security requirements
• growing infrastructure complexity

They adopted a co-managed model:

Internal IT:

• handled user requests
• managed internal processes

MSP:

• handled security
• monitored infrastructure
• supported escalations



Over time, as complexity increased, they transitioned to a fully managed model to simplify operations.

Cost Perspective

Co-managed IT may reduce external cost, but:

internal salaries must be considered

For example:

• internal IT salary: $80K–$120K
• co-managed MSP services: partial cost
• total cost may exceed fully managed model

Using a structured model — like the pricing calculator on our site — can help compare scenarios more accurately.

Transition Path: Co-Managed → Fully Managed

Many firms follow this path:

1. Start with co-managed IT
2. Identify gaps and complexity
3. Increase MSP involvement
4. Transition to fully managed model

This reduces risk and builds trust.



The Bottom Line

There is no single “correct” model.

But:

• co-managed IT offers flexibility
• fully managed IT offers simplicity and accountability

The right choice depends on:

-internal capability
-risk tolerance
-business priorities



Not sure whether co-managed or fully managed IT is the right fit?

Leslie can review your current setup and help you:

• define responsibilities clearly
• compare cost scenarios
• identify risk gaps
• determine the right model for your firm

Schedule a 30-minute strategy call with Leslie.

This is a practical evaluation — not a sales conversation.

Frequently Asked Questions