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Co-managed IT: The Next-Gen Business Model

Co-managed IT: The Next-Gen Business Model

This past year has seen a protracted change in how companies manage their IT requirements. The COVID-19 pandemic exposed several vulnerabilities across multiple business sectors, highlighting their lack of agility in the face of disaster. Many businesses struggled to transition their operations into large-scale telecommuting organizations. To reduce costs, a deluge of IT departments across the globe were forced to downsize as the demand for technology services increased.

In the light of these last two years, the need for external IT support and the adaptability and scalability these services offer has never been greater. Managed IT business models are continually evolving. Companies increasingly opt for co-managed IT services and managed security service providers (MSSPs) at unforeseen rates. Under these platforms, managed service providers partner with existing internal IT departments for additional support. They assume some, but not all, of the responsibilities, which can range from routine help desk services to advanced cybersecurity protection.

Co-managed IT service engagement has decidedly increased since the onset of the pandemic. As many as 40% of small to mid-sized businesses deploy co-managed IT solutions frequently or nearly all the time. The approach to IT is rapidly becoming the new normal. It is, perhaps, the most reliable platform for delivering IT services to business models that blend office-based and remote workers.

Waging a lasting business partnership

So how does a co-managed IT service work? For starters, it is unlike a fully managed service in that the model forges a genuine partnership with your on-premises IT department, working in tandem with them to fulfill common goals. Co-managed services differ from classical IT consultancy firms, as well, because the services are typically delivered over the span of a long-term agreement and not on a project-by-project basis. The structure of the partnership can take countless forms, depending on the needs of your business.

Managed IT services bolster your internal IT department by providing additional expertise, resources, flexibility, and scalability. They offer an extra pair of eyes and another set of hands in a clearly defined area. If your in-house IT team struggles to keep up, managed services can fill in multiple gaps. Whether it’s running your security operations center entirely, monitoring your networks for abnormalities, or renewing software licensure, there’s really no task a reputable co-managed IT service provider can’t handle.

Your service level agreement (SLA) outlines the specific terms and performance expectations. The details of the contractual arrangement depend upon your business needs. If your requirements demand loan staff on-site for technical support, a co-managed service can supply these resources. Most often, they deliver remote monitoring and management and monitor in addition to strategic planning advice and employee training. Essentially anything a fully managed service offers in its stack -you can expect the same from your co-managed IT provider.

Whenever you partner with a managed service of any kind, you increase your response time significantly, staying more prepared to handle complex IT issues like cybersecurity attacks and sweeping digital transformation initiatives. You can feel confident handling these tasks without committing time to additional training or hiring expensive specialized IT talent. A co-managed IT solution is the most cost-effective approach to address your in-house skill gaps. We at PCH Technologies have decades of combined experience virtually dozens of key areas like cloud transformation, threat hunting, and data theft prevention.

The ongoing skilled IT labor shortage hasn’t made the direct hiring process any easier for small businesses. Before the pandemic, many companies were already actively downsizing their IT internal departments, migrating many of their IT requirements to a co-managed service partner. This trend has continued over the last two years, contributing significantly to the growth and popularity of the co-managed IT business model.

COVID-19 brought about several unanticipated IT complexities for companies, driving them to partner with managed service providers at an unforeseen pace. Roughly 33% of all recent co-managed services engagements cited in-house skill gaps behind their reasoning to partner with an IT outsourcer. Another 29% indicated cost considerations prompted them to integrate a co-managed service into their IT plans.

PCH Technologies, the best MSSP for small business

In addition to general IT complexity, the global health crisis only exacerbated cybersecurity concerns. More and more companies are forming co-managed partnerships to handle these concerns. Technology continues to develop at a remarkable clip, with new technology emerging every day. Companies have to implement new solutions, but deciding which route to pursue isn’t always easy.

MSSP services account for one of the best ways to facilitate your network security and digital transformation agenda. PCH Technologies can keep your costs manageable as you confront an increasingly complex landscape for IT. If keeping your company up-to-date with the latest technology in networking and security is a priority, call (856) 754-7500 to connect with a client relationship specialist now.