Co-Managed IT Services Explained

What is the Meaning of Co-Managed IT Services?

The term Co-Manage means “to look after, or take responsibility for an activity with another person or business”.

Co-Managed IT Services are defined as:

“An outsourcing model which allows a business to extend the capabilities of their internal IT resources with those of external IT specialists or a Managed Service Provider.”

This differs from full IT outsourcing, where a Managed Service Provider (MSP) assumes full responsibility for all IT systems—including administration, support, and maintenance.

How Can Offering Co-Managed Services Help My MSP Business?

Getting new leads is hard. Offering a smaller subset of your services can act as a hook to engage prospects, build trust, and upsell over time.

Why Do Businesses Consider Co-Managed IT Services?

• Too many systems with not enough in-house expertise
• An overburdened or under-resourced IT team
• A desire to keep control while sharing the workload

SMB – Co-Managed IT as a First Step

Small businesses (<20 users) often have IT handled by a founder or technically inclined staff member with other duties. Co-management is a natural first step toward outsourcing.

Common triggers for adopting co-management:

1. Persistent unresolved technical issues
2. Introduction of a new system requiring expertise
3. Growth causing IT to fall behind
4. Security risks or incidents

Break/Fix vs. Co-Management

Break/Fix = reactive, no ongoing relationship.

• Plumber analogy: Call only when it’s broken.
• No contract, no ownership, just a time & materials engagement.

Unless enduring access or defined responsibilities exist, Break/Fix is not true co-management.

Medium Businesses – Extending the Team

Medium-sized businesses often have an internal IT person/team but lack full-stack expertise.

Even a 20-person business may have:

• Complex infrastructure
• Internal apps
• Security needs

Larger companies may have small teams but still need external help to fill gaps.

Triggers for Co-Management in Medium-Sized Businesses:

1. High support ticket volume
2. Delays from overworked teams
3. Strategic projects disrupting BAU
4. Sick leave, staff shortages
5. Missing skills
6. Tech refresh or EOL systems
7. Org restructuring or leadership change
8. Staff departures or IT staffing issues
9. M&A or divestment

What Value Does an MSP Bring?

💼 Microsoft Licensing

Navigating Microsoft’s naming and pricing is tough. MSPs make this easy by advising the best-fit solution.

💬 Support Desk

24/7 support, escalation processes, and professional ticketing systems are hard to match internally.

🖥️ Infrastructure

MSPs run enterprise-grade infrastructure—improving uptime, performance, and security.

☁️ Cloud Services

MSPs understand cloud billing and optimization—ensuring clients don’t overspend or misconfigure.

🧩 Solutions & Software

MSPs draw from broad experience across clients—bringing insights and solving problems efficiently.

MSP Considerations for Co-Management

Your co-management offering should be:

• Clearly defined
• Deliverable by your team
• Aligned with your service model

Beware of “foot-in-the-door” traps—don’t overpromise or take on something you can’t support just to win a big-name client.

⚠️ Risks to Avoid

• No defined responsibilities
• Unmanaged internal IT staff actions reflecting poorly on you
• Full risk with no control—proceed with caution

Co-Management Offers

Co-management may be foreign to some MSPs—define it carefully.

Ask yourself:

• Can I describe the service clearly?
• Is this easy for my team to deliver?
• Who owns what responsibility?
• What must the customer do for success?
• How is success measured?
• What resources/skills are required?
• What is my cost to deliver?

If it doesn’t fit—be brave and walk away.

Example: You’re a Windows shop. A client wants RedHat support. You don’t have the skills. Refer it out.

Upselling from Co-Management

Trust is the foundation.

“Trust is earned and rarely given.”

Earn it with reliable service and proactive support. When trust is strong:

• Clients prefer to expand relationships, not start new ones
• They’ll be more receptive to upsell opportunities
• You’ll reduce churn and increase your value

Pro Tips:

• Track and show service success
• Go beyond the IT contact—talk to end users
• Regular check-ins = opportunity detection
• Promote your broader offerings

Offering Desktop Support as a Co-Managed Service

Desktop support is often a pain point for internal IT. It’s not strategic but impacts user satisfaction.

MSPs offering Level 1 or 2 support must:

• Have admin access
• Define clear roles
• Follow shared processes

Otherwise, it can quickly become unmanageable.

Using Atria

Atria enables fast onboarding and streamlined co-management.

Basic Process

1. Connect
   • On-prem: Deploy agent
   • Cloud: Select Azure AD tenant
2. Import Users
3. Support Tasks
   • Moves
   • Adds
   • Changes
   • Password resets

1. Offer Independently – Enable Self-Service

Provide Atria with no support, just access—customers perform their own IT admin.

2. Bundle into Your Support Service

Few MSPs offer self-service portals. This differentiates you—especially for larger clients.

3. Upsell

Use the Atria SDK to add your own services. This makes it easy for customers to discover and purchase more from you—all inside the same portal.