Managed Services, IT management

The Co-Managed IT Playbook: Maximizing MSP Efficiency Through Collaboration

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ChannelE2E Perspectives columns are written by trusted members of the managed services, value-added reseller and solution provider channels.

COMMENTARY: Co-managed IT support and services have gained significant traction in recent years. One primary reason is the sheer number of employees working from anywhere, including the office. Today’s hybrid workforce has made it harder for internal IT departments to protect and securely manage the workforce proactively. It’s also introduced the need for more automation, controls, and processes and heightened the importance of cybersecurity and compliance. 

As a result, corporate “IT insiders” are desperately seeking reinforcements to help share or carry the load and responsibility, especially when implementing additional data and security measures. Layer on the increased interest and use of AI by corporations and their teams, and you’ve got a perfect storm of opportunity for MSPs with co-managed services at the ready.

Making the Case for Co-Managed IT

Co-managed IT is a hybrid approach where internal IT staff work in tandem with external MSPs to manage an organization’s IT infrastructure. This model offers flexibility, scalability, and access to specialized knowledge that might be beyond the scope of an in-house team alone. By leveraging the combined strengths of both parties, businesses can ensure robust, efficient, and cost-effective IT management.

Co-managed frees up the in-house team to focus on the everyday needs of the business and the team, while the MSP or IT service provider conducts the security audits and advises on better practices and compliance. 

To make the business case, let’s discuss what the MSP needs to create its own co-managed playbook and explore the benefits for both parties.

Focus is a key benefit to co-managed IT for both the MSP and the corporate IT team. Additional value MSPs can share with prospects and clients include:

  1. Enhanced Expertise and Resources: MSPs bring specialized skills and knowledge, providing access to the latest technologies and best practices. This expertise complements the internal team’s understanding of the company’s unique needs and goals. 
  2. Scalability and Flexibility: Co-managed IT allows businesses to scale their IT resources up or down based on demand. This flexibility is crucial for growing companies or those with fluctuating IT needs. 
  3. Cost Efficiency: By outsourcing specific functions to MSPs, organizations can reduce the costs associated with hiring and training new staff, maintaining hardware, and managing software licenses. 
  4. Focus on Core Business Functions: With the support of MSPs, internal IT teams can focus on strategic initiatives and core business functions, driving innovation and growth. 

Developing a Co-Managed IT Playbook

The first step in a successful co-managed IT relationship is thoroughly assessing your client's existing IT infrastructure, capabilities, and pain points. MSPs should conduct a comprehensive audit to identify areas where they can add the most value.   

Next, roles and responsibilities must be defined, and clear boundaries must be set between the in-house IT team and the MSP. This delineation, documented in a detailed service-level agreement (SLA), is a powerful tool that outlines which tasks fall under whose domain, ensuring clear communication and preventing overlaps or gaps in service delivery.

MSPs should also invest in robust project management and ticketing systems, allowing easy information sharing and task tracking between both teams. Regular check-ins, joint planning sessions, and shared dashboards help maintain alignment and foster a true sense of partnership.

A key aspect of co-managed IT is the opportunity for knowledge sharing between the MSP and the client's internal team. MSPs should view this as a chance to elevate the skills of the client’s in-house staff rather than seeing them as competition. Training and strategy sessions and mentoring can create a more capable and efficient overall IT operation, benefiting both parties.

What it Takes to Successfully Deliver Co-Managed Services

For an effective co-managed IT relationship, MSPs must position themselves as strategic partners rather than service providers and consistently demonstrate their value. This approach involves setting clear, measurable key performance indicators (KPIs) that align with the client's business goals. Regular reporting on these metrics and tangible examples of how the MSP has improved efficiency, reduced costs, or enhanced security is crucial for justifying the ongoing partnership.

Many organizations have successfully implemented co-managed IT solutions to drive business success. For instance, a mid-sized manufacturing company might partner with an MSP to handle network management and cybersecurity, allowing its internal team to focus on optimizing production processes and implementing new technologies.

Similarly, a healthcare provider could work with an MSP to manage electronic health records (EHR) systems and help with compliance and industry regulations. At the same time, their internal IT staff focuses on patient care technologies and data analytics.

Co-managed IT offers a powerful framework for businesses to enhance their IT capabilities, improve efficiency, and drive growth. 

Organizations can successfully leverage the combined strengths of their internal teams and MSPs by developing a comprehensive playbook that outlines clear roles, effective communication protocols, and robust security measures. Embracing this collaborative approach ensures businesses remain agile, competitive, and well-equipped to navigate the ever-evolving technological landscape.

Stefanie Hammond

With two decades of channel expertise, Stefanie Hammond has focused her efforts on helping growth-minded MSPs overcome today’s sales and marketing challenges. As a Head Nerd for N-able, Stefanie dedicates her thinking to ideating, writing, and helping find better ways for MSPs to improve the profitability of their practices through effective sales and marketing.