In today’s rapidly evolving IT landscape, businesses are navigating an array of challenges. From increasing cyber security threats and the need for advanced infrastructure management to AI implementation and day-to-day service desk queries, there are more balls to juggle.

With more to do and higher stakes, co-managed IT has emerged as a flexible and strategic solution for businesses. It offers a partnership between in-house IT teams and external providers to address growing operational demands effectively.

In this blog, we explore the shift towards co-managed IT. We’ll answer everything you need to know if you’re thinking about following the trend in your business.

What is co-managed IT?

Co-managed IT is a collaborative approach to IT management. Businesses share responsibilities between their internal IT team and external service providers.

Unlike fully outsourced IT models, where all IT operations are handled by a third-party provider, co-managed IT retains a level of control and involvement within the company. Similarly, it differs from a fully in-house IT model by integrating external expertise and resources to support areas where the in-house team might face limitations.

The key components of co-managed IT include:

• Shared responsibilities, which allow both parties to focus on their strengths
• Flexibility in shaping the partnership to suit specific business need
• Scalability, ensuring that IT capabilities can adapt to the needs of the business over time

This empowers businesses to address challenges more efficiently and strategically, balancing cost-effectiveness with operational excellence.

Why the shift toward co-managed IT?

A recent IT survey we undertook highlighted that 75% of businesses are now using outsourcing to some degree. This has been steadily increasing over recent years as businesses tackle a myriad of challenges.

Operational efficiencies

The first driver of the move towards outsourced and co-managed IT is the need for operational efficiency.  Businesses face increasing pressure to reduce costs while maintaining agility and resilience in a rapidly evolving digital landscape. However, inefficiency has been a frequent issue across IT.

In our study, only 16% of businesses reported never having an issue with IT. A further 58% claim their IT is more reactive than proactive, leading to inability to be agile and innovative.

Co-managed IT addresses these inefficiencies by leveraging a hybrid approach that maximises strengths on both sides of the partnership. By combining your internal team’s deep understanding of the company’s systems and needs with your providers’ specialised expertise and tools, you can streamline operations and improve response times – enabling you to be more efficient.

Cost optimisation

Another driver behind the trend is cost optimisation. Inefficiencies often see the total cost of ownership across a business’s IT operations skyrocket.

At a time where businesses face rising costs across the board, outsourced IT can help to streamline expenditure. It gives you access to the resource you need without having to cover staff overheads. It can also improve overall efficiencies, lowering costs even further. Data from Forbes suggests outsourcing can save businesses up to 70%.

Skills shortages

Perhaps the most significant reason behind the push towards co-managed IT, is a cross-industry skills gap. 93% of organisations report facing an IT skills gap. This is driven by rapid advancements in technology and a lack of digital upskilling.

In our own research, 73% of surveyed businesses said they needed extra IT members for perform better. 59% also struggled to fill vacancies through recruitment. Co-managed IT can enable these organisations to fill these gaps with skilled resource and without extensive recruitment drives, relieving the pressure on internal teams.

Growing cyber threats

On top of the other factors, cyber security demands have become a critical issue in today’s digital landscape due to the escalating frequency and sophistication of cyber attacks. Organisations are increasingly targeted by hackers, which can lead to devastating financial and reputational damage. The current skills gap is exacerbating this issue, making it harder for businesses to protect themselves.

Co-managed IT solutions address these challenges by providing businesses with access to specialised security experts and cutting-edge tools. This collaborative approach enables organisations to bolster their security posture, implement proactive threat detection, and respond swiftly to incidents, addressing the rise in cyber crime.

The benefits of co-managed IT

On top of addressing many of the issues businesses face in the current climate, co-managed IT offers several benefits, including:

• Enhanced scalability: A co-managed model allows organisations to flexibly scale their IT operations based on evolving needs, whether it’s adapting to seasonal demands, growth initiatives or unexpected challenges. By partnering with external experts, businesses gain on-demand access to resources, tools and innovative solutions without the lengthy process of hiring or training additional staff.
• Improved operational resilience: Co-managed IT fosters a partnership that ensures continuity in the face of disruptions, such as system outages or cyber threats. The shared responsibilities between internal teams and external providers create a proactive environment where potential risks are identified and mitigated before they escalate. This amplifies efficiency and reduces downtime, enabling businesses to remain productive and competitive.
• Elevated strategic focus: By delegating routine and specialised IT tasks to trusted providers, internal teams can redirect their attention to more value-driven activities, such as innovation, customer engagement, and strategic planning. This redistribution of workload not only boosts morale but also positions IT as a catalyst for organisational growth.
• Access to cutting-edge technologies and industry expertise: Partnering with external providers ensures businesses stay ahead of the curve by leveraging the latest advancements in IT. Providers bring specialised knowledge, state-of-the-art tools and insights gained from working across diverse industries, empowering organisations to innovate and thrive in a competitive market.
• Greater control and collaboration: Co-managed IT allows organisations to retain control over critical IT operations while benefiting from external expertise. Unlike fully outsourcing, this model fosters collaboration between internal teams and external providers, ensuring alignment with business goals.
• Cost-efficiency without compromise: Co-managed IT strikes a balance between affordability and quality. Businesses can allocate their budgets more effectively by outsourcing only the areas where external expertise is most needed, avoiding the higher costs of full outsourcing.

How to evaluate if co-managed IT is right for your business

Determining whether co-managed IT is the right fit for your organisation requires a careful assessment of your current challenges, aspirations and operational landscape.

Below is a checklist to guide your decision-making process:

• Current IT pain points: Identify recurring issues or inefficiencies within your IT operations. Are your internal teams overwhelmed by routine tasks, or do you lack the expertise to manage emerging technologies? If so, a co-managed IT model can provide the support you need to address these gaps effectively.
• Budget constraints: Evaluate your financial resources and determine whether you have the capacity to hire additional in-house staff or invest in extensive IT infrastructure. Co-managed IT allows you to optimise your budget by outsourcing specific tasks, ensuring you receive high-quality service without overspending.
• Growth plans: Consider your organisation’s future trajectory. Are you anticipating rapid expansion, seasonal spikes, or new market opportunities? Co-managed IT offers the scalability required to support dynamic business growth without the lengthy process of building or expanding an internal IT team.
• Security needs: Assess your current cybersecurity posture and identify vulnerabilities or threats that could jeopardise your operations. Co-managed IT providers bring specialised expertise and proactive measures to ensure your systems remain secure and compliant with industry regulations.

By systematically addressing these factors, businesses can make informed decisions about whether a co-managed IT model aligns with their goals and operational needs. This approach ensures a tailored solution that strengthens organisational resilience, enhances efficiency and supports sustainable growth.

Choosing the right co-managed IT partner

Selecting the right co-managed IT partner is a pivotal decision that can significantly impact the success of your IT operations and overall business strategy. Here are key attributes to prioritise when evaluating potential providers:

• Experience with similar businesses: Seek a provider with a strong understanding of the unique challenges and requirements faced by organisations like yours. Their experience will ensure that the solutions they offer are practical, scalable and tailored to your specific needs.
• Transparent SLAs: A reliable partner will provide clear and measurable SLAs, outlining the level of service you can expect, response times, and accountability mechanisms. Transparency in SLAs fosters trust and ensures alignment with your expectations.
• Proven track record: Research the provider’s history of performance and client success stories. Case studies, testimonials and references can offer valuable insights into their ability to deliver consistent, high-quality service and adapt to different operational contexts.
• Security certifications: Given the ever-evolving landscape of cybersecurity threats, it is critical to partner with a provider that holds relevant security certifications. This demonstrates their commitment to maintaining the highest industry standards and protecting your organisation’s sensitive data.

By prioritising these attributes, you can confidently select a co-managed IT partner that aligns with your operational requirements, enhances your IT capabilities, and supports your long-term business goals. The right partner will act as an extension of your team, bringing expertise, reliability, and a shared commitment to your success.

Find out more about how outsourcing addresses business challenges

If your IT operations feel like they’re bringing your business down, you’re not alone. Many businesses are facing inefficient IT, impacted by resource gaps and inefficiencies.

However, by utilising outsourcing, whether fully or as part of a co-managed model, you can access the expertise you need to drive your strategic vision, alleviate internal strain and optimise performance.

In our research report, the State of Business IT 2025, we examine the obstacles facing organisations just like yours and how outsourcing can address them. You’ll get practical expertise from our IT and innovation leaders, showing you how to overcome challenges and unlock unrivalled efficiency.