For small and mid-sized businesses, managing technology needs has become significantly more complex over the last few years. Hybrid work, cloud migration, constant security threats, and rising customer expectations have all placed new demands on internal IT teams. Many of these teams, while capable and committed, find themselves pulled in too many directions at once.
That’s where co-managed IT services come in.
Co-managed IT is a collaborative model where a business’s internal IT staff works directly with a Managed Services Provider (MSP) to share responsibility for the company’s technology infrastructure. Unlike full outsourcing, where an MSP handles everything, co-managed IT is built to complement your existing team. It gives them access to the resources, expertise, and tools they need, without requiring the company to fully hand over control or commit to a massive hiring effort.
This approach has become increasingly popular among small to medium-sized businesses in 2025. It reflects a shift in how organizations view IT support, not as a binary choice between internal or external, but as a flexible partnership that can evolve as the business grows.
Why Co-Managed IT Is Gaining Momentum
One of the main reasons co-managed IT is gaining ground is that many businesses find themselves stuck between two difficult realities. On one hand, maintaining an internal IT team is expensive, especially when the roles require specialized knowledge that may only be needed intermittently. On the other hand, fully outsourcing all IT functions can create disconnects, especially in organizations where day-to-day institutional knowledge is valuable.
Co-managed IT provides a middle path. It gives businesses access to high-level support and modern IT tools while allowing their internal team to stay in control of key areas. This arrangement is especially useful when a team is facing high workloads, planning a complex project, or struggling to keep up with cybersecurity demands. In those moments, having a trusted external partner to share the load can make all the difference.
Another key factor is burnout. Many internal IT professionals report feeling overwhelmed—not because they lack skill, but because the scope of their responsibilities has grown faster than the available resources. Co-managed services allow them to delegate lower-priority tasks or highly specialized functions so they can focus on higher-value initiatives, like improving systems performance or enhancing employee training.
What Co-Managed IT Looks Like in Practice
Co-managed IT can look very different from one organization to another. Some companies may rely on their MSP partner to handle infrastructure monitoring, patch management, and backup systems, while their in-house team focuses on frontline support. Others may use co-managed services to supplement help desk support during busy periods, or to lead specialized projects like cloud migration or system upgrades.
For example, imagine a mid-sized architecture firm that employs a single full-time IT manager. That manager may be excellent at supporting daily operations and maintaining local systems, but may not have the time or tools to monitor network security 24/7 or lead a transition to a new cloud-based platform. With a co-managed model, the firm can bring in an MSP to handle those gaps without replacing or sidelining their internal IT lead. The MSP handles infrastructure monitoring, implements cybersecurity protocols, and provides extra help desk support after hours, while the internal team stays focused on optimizing day-to-day operations.
This kind of partnership not only reduces strain but also adds strategic depth. Businesses can move faster, avoid costly mistakes, and remain resilient in the face of evolving threats—all while retaining in-house control and context.
Strategic Advantages of Co-Managed IT
Beyond reducing strain, co-managed IT services offer long-term strategic value. First, they improve resilience. With two teams sharing responsibility, the organization is less vulnerable to the impact of turnover, absence, or unexpected technical issues. Knowledge is not centralized in just one or two individuals, and workflows can continue even if key staff are unavailable.
Second, businesses gain access to a broader set of tools and technologies, many of which would be cost-prohibitive to license and manage internally. From enterprise-grade cybersecurity solutions to automated patch management and system monitoring, MSPs bring a level of technical infrastructure that smaller businesses often can’t afford to maintain on their own.
Finally, co-managed IT helps businesses stay focused. When internal teams are free from putting out fires all day, they can devote more time to proactive planning, process improvement, and user support. This helps IT become a growth enabler instead of just a cost center.
Is Co-Managed IT the Right Fit?
Co-managed IT is a particularly strong fit for companies that already have one or more internal IT staff members but are struggling to meet all their operational and strategic needs. It’s also a good choice for businesses undergoing major transitions, such as moving to the cloud, increasing their remote workforce, or adapting to new regulatory requirements, where extra support and expertise are critical.
Organizations that rely heavily on uptime, such as law firms, medical practices, or accounting firms, often find that co-managed IT offers the best of both worlds: rapid response capabilities with the familiarity of in-house support. It also helps smaller companies “level up” their tech infrastructure without committing to large increases in full-time staffing.
What makes this model work is the collaboration. It’s not about outsourcing responsibility—it’s about building a partnership that enhances what your internal team can do.
Final Thoughts
As businesses continue to grow and adapt in an increasingly digital and remote-first world, their technology needs are only going to become more complex. Co-managed IT offers a practical and scalable solution for bridging the gap between what your team can manage in-house and what they need help executing.
Rather than forcing a choice between managing everything internally or outsourcing it all, co-managed IT provides a path toward greater capability, less burnout, and more strategic IT operations.
If you have an internal IT team but feel like you’re constantly playing catch-up, exploring a co-managed model could be the most impactful decision you make this year.