Co-Managed IT Services VS Internal IT Staff for Small and Medium Businesses

Small and medium-sized businesses (SMBs) must ensure they have the right IT support to remain competitive. One major decision owners face is when looking to expand their internal IT staff is to hire additional staff or turn to co-managed IT services. This article examines the advantages of co-managed IT services (different from managed IT services) while addressing the challenges of relying solely on internal IT employees.

Understanding the Concept of Co-Managed IT Services

Co-managed IT services represent a collaborative approach where a company's internal IT team partners with an external IT provider. This setup allows businesses to maintain their in-house expertise while gaining access to additional specialized skills and support from a managed service provider (MSP).

For instance, a small retail business with a two-person IT team may work with an MSP during busy seasons like the holidays. This partnership allows them to handle increased online traffic without hiring full-time staff, effectively deploying resources where they are most needed.

The Traditional Approach: Internal IT Staff

Hiring internal IT staff is often seen as the traditional route for SMBs needing IT support. While this approach comes with benefits, it also presents several challenges.

1. Recruitment Challenges

Finding qualified IT professionals can be a lengthy and tough process. With only 4.7% unemployment in the IT sector, businesses often struggle to find suitable candidates. This challenge can lead to extended vacancies, putting more strain on existing team members and hampering effective IT support.

2. High Salary Expectations and Benefits Costs

The financial commitment of hiring internal IT employees can be steep. On average, an IT staff member costs SMBs around $70,000 annually when factoring in salary and benefits. When you consider training and career development, which can add another 15-20% to annual costs, the investment can become substantial.

3. Limited Expertise and Skills

While internal hires often understand the company’s systems, they may lack broader expertise that would help in diverse situations. For example, a retail company with an internal IT person specializing in point-of-sale systems could face challenges if cybersecurity threats emerged. The narrow focus can quickly become a barrier to solving wider IT issues.

4. Employee Turnover

High turnover in IT departments can throw a company’s tech strategy into chaos. A report indicates that the tech industry sees turnover rates at 13% to as high as 18% annually. Changes in staff can result in the loss of critical knowledge, delay in project completion, and added costs from onboarding and training new recruits.

The Advantages of Co-Managed IT Services

With these challenges in mind, many SMBs are looking toward co-managed IT services as a practical alternative.

1. Cost-Effectiveness

Co-managed IT services are more cost effective compared to hiring full-time staff, while INCREASING efficiency and cybersecurity within your company.

2. Enhanced Flexibility and Scalability

Co-managed IT services offer businesses the ability to scale support based on current needs. During a company-wide software rollout, for instance, an internal team could easily bring in external support without the pressure of keeping additional staff engaged year-round. Additionally, one IT technician at Tursa Group can handle up to 150 employees without causing any disruptions. This makes co-managed IT services an appealing service for companies looking to expand their organization without constantly hiring new IT staff.

3. Access to a Broader Skill Set and Tools

Partnering with a co-managed IT provider gives access to a diverse skill set that an internal team alone might not possess. For example, a company may need cloud migration expertise that its small team lacks. A co-managed partner can fill this gap, providing insights that enhance overall performance. Co-managed IT services at Tursa Group also allows your internal IT department access to our enterprise level technology stack for more advanced tools and technology.

4. Focus on Core Business Functions

Outsourcing specific IT functions allows internal staff to concentrate on core tasks. A marketing team, for example, could benefit from a more efficient IT system that allows them to focus on campaigns rather than troubleshooting tech issues. This redirection fosters greater productivity and drives growth.

5. Continuous Support and Updates

Co-managed IT providers typically offer ongoing support and active monitoring. For instance, consistent updates to software can protect a company from cyber threats, reducing the risk of data breaches inflicted by outdated systems. This proactive management can save businesses time and mitigate financial loss.

Making the Transition: Key Considerations

For SMBs considering a shift to co-managed IT services, effective integration into existing operations is crucial for success.

1. Assess Current IT Needs

Start by evaluating current IT needs to identify what gaps can be filled by co-managed services. For example, a manufacturing firm might recognize it requires more cybersecurity protection during peak production seasons, guiding its partnership strategy.

2. Communicate with Key Stakeholders

Effective communication is critical during any significant transition. Sharing the benefits of co-managed IT services with internal stakeholders can build support and encourage buy-in, making for a smoother transition.

3. Define Clear Roles and Responsibilities

Establishing distinct functions for internal and external teams is essential. For example, if internal staff are responsible for day-to-day operations, the co-managed partner could handle system maintenance and security checks, ensuring both sides work towards mutual goals.

4. Regularly Review and Adjust Services

Finally, schedule regular reviews of the partnership to ensure the co-managed IT service meets the evolving needs of the organization. Continuous adjustments enhance effectiveness and improve overall satisfaction.

Weighing Your Options: Co-Managed IT Services vs. Internal IT Staff

Deciding between co-managed IT services and expanding your internal team is not a simple choice. While traditional hiring may appear appealing initially, obstacles such as recruitment difficulties, high costs, and limited expertise often make it less attractive for many SMBs.

Co-managed IT services can offer flexibility and a wealth of expertise, allowing businesses to maintain competitiveness in a rapidly changing tech world. By clearly assessing current IT demands and remaining open to innovative solutions, SMBs can position themselves for future success.

Is your business ready to embrace the possibilities that come with co-managed IT services? It may be the strategic advantage you need to stay ahead.