Why co-managed IT services makes sense now
- Market timing is ideal
We’re currently facing not only a tech labor shortage but also a possible recession looming, which generally brings about layoffs and downsizing. This means there has never been a better time for MSPs to consider augmenting their traditional managed services model with the co-managed approach. The co-managed IT model is a natural fit for MSPs as it plays right into their wheelhouse. - Makes good economic and operational sense for internal IT departments
Offloading tasks and certain network responsibilities to an external MSP firm can make good economic and operational sense for internal IT departments. This is especially true if they are facing downsizing or are struggling with trying to find and hire additional technical personnel. Budgets generally get tighter in times of recession and staff hires are postponed, forcing existing employees to have to manage more while working with less. Co-managed IT services can provide a more cost-effective option for internal IT departments instead of hiring a new full-time employee, and they can typically acquire a pool of specialized IT resources for the same cost, or less, than one full-time employee. - Allows MSPs to broaden their target market beyond their traditional outsourced managed services customers, and helps develop a new source of revenue for their business
Without acquiring or merging with other MSPs, many IT service providers are struggling to find ways they can grow their customer base and increase their revenues within the traditional, outsourced managed services model. But by shifting their focus and moving upstream into the mid-market space, the co-managed approach provides MSPs with the opportunity to attract and work with much larger customers than they would have been able to attract previously under the traditional managed services model. And with these larger customers, comes bigger contracts with higher returns—thereby, enabling them to break through any revenue and growth plateaus they might be experiencing. - Provides a tangible way for MSPs to differentiate themselves from their competitors in their marketspace
Co-managed IT services is still a relatively new concept for MSPs, and at the moment not many are promoting this kind of service. And I know this because as part of my role I look at a lot of MSP websites and am connected to many MSPs on LinkedIn, and there is rarely a mention of co-managed services. So even if your competitors ARE offering co-managed services, I am prepared to bet that they aren’t promoting it. And we all know in this digital world, that if it can’t be found online then it doesn’t exist. So you can use this as an opportunity to get ahead of the competition and build a proper marketing and sales strategy around it.
