Managed, co-managed and professional service models offer different methods for accessing IT expertise.
Most IT organizations today face the challenge of supporting growing numbers of applications and services with too few resources. Nearly three-quarters of business leaders say they are struggling to fill open technology positions, according to a recent study from the Institute of Electrical and Electronics Engineers (IEEE).
The talent shortage impacts organizations in significant ways. Because day-to-day troubleshooting commands so much attention, short-staffed IT teams struggle to adopt new technologies, implement efficient processes and remain abreast of the rapidly evolving tech landscape.
“While the adoption of emerging technology is key for growth, leaders must double-down on closing the talent gap in tech,” said John Durrant, banking solutions president at financial technology firm FIS. “Companies can close the skills gap faster by finding the right partners that can help them launch the innovative capabilities they seek.”
There are three main models for acquiring IT services through third-party partners. Managed services provide fully outsourced support on an ongoing basis. Co-managed services offer more customized support options. Professional service models are more focused on project-oriented services. Following is a brief summary of each model, along with some of their key characteristics and benefits.
Managed Services
In the managed services model, a third-party provider takes full responsibility for managing the IT environment and delivering a comprehensive set of IT services. Proactive monitoring, remote technical support, patch management, backup and recovery, and cybersecurity are among the many services provided on an ongoing basis through a subscription or service-level agreement (SLA).
Managed services providers (MSPs) deliver services that many organizations cannot achieve on their own. Providers typically leverage best-in-class tools and processes on behalf of their customers. A key feature of this arrangement is the proactive nature of support. Providers can identify and resolve many potential issues before they disrupt operations. They also take steps to keep the IT environment resilient and up-to-date.
Subscription pricing contributes to budget flexibility by eliminating unplanned capital expenditures (CapEx) and converting IT support into a predictable operating expense (OpEx). Having all costs combined under a single contract with one monthly payment allows companies to improve cash flow, preserve capital and keep costs manageable.
Co-Managed Services
Like other staff augmentation models, co-managed services provide additional manpower and expertise to help customers address their IT requirements. However, the co-managed approach offers much greater control. The customer’s in-house IT team directs external staff on whatever tasks are necessary to meet the company’s particular needs.
Keeping internal IT teams in control of the decision-making process helps ensure that external resources are properly aligned with the organization’s unique requirements and existing workflows. This contributes to a highly collaborative environment in which the skills of both internal and external experts are leveraged for maximum efficiency.
Increased flexibility is another advantage of co-managed IT. It allows companies to scale staffing levels up or down as needed for help-desk functions, security, network operations and more. It also saves time by eliminating the recruiting and training process — the supplemental staff already have the skills to hit the ground running. Plus, they’re available 24 hours a day, 365 days a year to meet mission-critical requirements.
Professional Services
Unlike the ongoing nature of managed and co-managed services, professional IT services are more project-oriented engagements in which IT experts offer consultation, development or specific interventions based on the customer’s immediate needs. It is a more transactional approach and may not include ongoing management.
Professional services engagements are defined by clear objectives, timelines and deliverables, allowing businesses to achieve targeted outcomes within a specified timeframe. This can involve tasks such as system upgrades, software development, cybersecurity assessments or infrastructure optimization.
The project-oriented approach provides several advantages. It allows organizations to access specialized expertise for a defined period, which ensures that resources are concentrated on achieving project goals efficiently. Additionally, project-oriented services allow businesses with fluctuating IT needs to adapt quickly to changing circumstances without long-term commitments.
Making the Right Choice
Organizations must consider several factors when evaluating these three IT service models. A managed services engagement is probably the best choice for organizations needing general IT support with a predictable cost structure. Co-managed and professional services can involve variable costs based on the nature and duration of the engagement.
Co-managed services have an edge in terms of flexibility and scalability. Businesses can scale their IT support resources up or down as needed, leveraging external expertise when faced with specific challenges or during periods of increased workload. This model is also a better choice for organizations who want a more collaborative relationship between internal and external IT teams.
All three options provide access to experts in a wide range of IT disciplines, but the professional services approach offers more targeted expertise for specific projects. This model is also the best choice for organizations that require highly customized services to address unusual or sporadic issues on an ad-hoc basis.
