Co-managed

Co-managed IT is an engagement model where the MSP and a client's in-house IT team share operational responsibilities. The MSP typically handles tier-1 support, monitoring, patching, and backup while the internal team handles strategic projects, line-of-business application support, and executive relationships. Co-managed agreements are increasingly common as SMBs grow large enough to hire their first IT staff but still need MSP expertise for depth and coverage.

Typical split

MSP owns tier-1 service desk, RMM monitoring, patching, backup, and security; internal IT owns projects, vendor management, and strategic planning.

Pricing model

Usually a reduced per-user fee compared to fully managed, plus project rates for specific engagements.

Why it matters

Co-managed clients are stickier than fully managed accounts because the MSP is embedded in the client's organizational structure rather than being a pure external vendor.