What’s the Difference Between Fully Managed IT and Co-Managed IT?
Fully managed IT and co-managed IT are often discussed as if they’re variations of the same service. They’re not. They are two different operating models, designed for different types of organizations.
At a high level:
- Fully managed IT means an MSP is responsible for all day-to-day IT operations.
- Co-managed IT means IT responsibility is shared between your internal team and an MSP.
In practical terms, most businesses see:
- Fully managed IT priced around $180–$250 per user per month
- Co-managed IT priced around $90–$140 per user per month
The difference isn’t just cost. It’s about who owns outcomes.
What Fully Managed IT Really Means
Fully managed IT is built for organizations that want IT off their plate, not partially delegated.
In this model, the MSP assumes full operational responsibility. That includes user support, infrastructure, security, and coordination with vendors. The business is not expected to manage IT execution internally.
Most fully managed engagements include:
- End-user support and issue resolution
- Device, user, and access management
- Cybersecurity controls and monitoring
- Backup oversight and recovery readiness
- Patch management and system maintenance
The defining characteristic isn’t the toolset — it’s accountability. When something breaks, the MSP owns the fix.
What Co-Managed IT Actually Looks Like
Co-managed IT exists to support internal IT, not replace it.
Here, responsibility is intentionally split. Internal staff stay hands-on, while the MSP provides coverage, tools, and expertise that would be difficult or inefficient to maintain in-house.
Typical co-managed arrangements involve:
- Internal IT handling users and daily operations
- The MSP managing security platforms, monitoring, and escalation
- Shared responsibility for projects and planning
This model works best when roles are clearly defined in advance. When they aren’t, issues tend to stall rather than resolve.
Where Businesses Get This Wrong
Most problems with these models come from misalignment, not execution.
Common mistakes include choosing co-managed IT without internal IT staff, or expecting fully managed outcomes at co-managed pricing. In both cases, accountability becomes blurred.
When ownership isn’t explicit, security gaps appear and response slows. A capable MSP will address this upfront, not after onboarding.
A Simple Way to Choose the Right Model
The decision usually becomes clear once you focus on responsibility rather than features.
Fully managed IT is typically the better fit when there is no internal IT function, when security and uptime are business-critical, or when leadership wants a single point of accountability.
Co-managed IT tends to work best when there is already technical ownership internally, but gaps exist around security, tooling, coverage, or scale.
Neither model is permanent. Many organizations move between them as they grow or restructure.
Why the Pricing Is So Different
The pricing difference reflects scope and risk, not just labor.
With fully managed IT, the MSP is responsible for everything: support, systems, tools, and outcomes. That level of accountability carries cost.
With co-managed IT, responsibility is shared. The MSP’s scope is narrower by design, which lowers the monthly cost but requires internal ownership to be effective.
Problems arise when expectations don’t match the model.
A Real-World Example
A professional services firm with just over 40 employees selected a co-managed IT provider, despite having no internal IT staff.
The result was predictable. Issues were escalated but not owned, security responsibilities were unclear, and response times suffered.
After switching to a fully managed model at $195 per user per month, support stabilized, security controls were standardized, and recurring issues dropped within two months.
The failure wasn’t technical. It was structural.
The Model Matters Less Than Clear Ownership
Fully managed IT and co-managed IT can both work well — when accountability is clear.
What matters most is knowing who owns:
- Day-to-day support
- Security decisions
- Escalation and response
- Long-term planning
When those are defined, the service model becomes a tool instead of a liability.
Not Sure Which One Applies to You?
Most businesses can determine the right model in a 15–20 minute conversation once responsibilities, risk tolerance, and expectations are laid out.
That conversation isn’t a sales pitch. It’s a way to avoid choosing the wrong structure — which is far more expensive than choosing the wrong tools.
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Service Models FAQ
What’s the difference between fully managed and co-managed IT?
Fully managed IT means the MSP owns day-to-day IT operations and outcomes. Co-managed IT is a shared-responsibility model where internal IT remains hands-on and the MSP provides tools, monitoring, security management, escalation support, and coverage.
How much does co-managed IT typically cost per user?
Co-managed IT commonly ranges from $90–$140 per user per month depending on how responsibilities are split and what the MSP manages (security stack, monitoring, escalation, after-hours coverage, backups, and tooling).
Which model is right for my business?
Fully managed IT is typically best when you want a single point of accountability and do not have internal IT ownership. Co-managed IT is typically best when you have internal IT staff but want additional coverage, stronger security, and escalation support without adding headcount.
