What Is Co-Managed IT vs Fully Outsourced IT?

When it comes to managing technology, most businesses fall into one of two camps. Either they hand it all off to an IT provider, or they share the work between their internal IT team and an outside partner. That’s the difference between fully outsourced IT and co-managed IT.

Knowing which one makes sense for your business can save you a lot of time, money, and stress.

Let’s start with fully outsourced IT. This is when you don’t really have an internal IT department - or maybe just one person who’s “kind of techy” but not a full team. In this setup, your IT provider handles everything. They become your IT department. That means managing your network, cybersecurity, backups, compliance, employee support, and those everyday headaches like email issues or printers that just don’t cooperate. For small to mid-sized businesses, outsourced IT is often the simplest path. You get all the expertise of a full IT team without the overhead of hiring and managing staff.

Now, co-managed IT is a little different. This model is built for businesses that already have IT staff - maybe it’s a small team, maybe just one overworked IT person. Instead of replacing them, a co-managed provider partners with your internal team. That might mean taking on big projects like cloud migrations or compliance work while your team handles daily support. Or maybe the provider focuses on 24/7 monitoring and cybersecurity while your staff takes care of routine needs. The point is, co-managed IT fills the gaps and adds extra horsepower without you needing to hire more full-time employees.

So, here’s the plain difference: with fully outsourced IT, you hand off everything. With co-managed IT, you share responsibilities. Neither option is “better” across the board - it depends on your business. If you don’t have IT staff or just want someone else to handle it all, outsourced IT is a great fit. If you do have IT staff but they’re stretched too thin or missing certain expertise, co-managed IT makes more sense.

And one more important point: co-managed IT isn’t about replacing your internal team - it’s about empowering them. They get the support they need to focus on bigger-picture goals, while you get the reassurance that nothing is slipping through the cracks.

So, to recap: outsourced IT is handing everything off, and co-managed IT is working together. Both deliver support, security, and expertise. The real question is how much you want to keep in-house, and how much you want to share with a trusted partner.

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