A decade ago, co-managed IT relationships were rare. The few MSPs that accounted for co-managed offerings (where an MSP helps manage IT infrastructure alongside an internal team) mainly did so with clients that had complex lines of business and needed full IT support plus a dedicated help desk manager.
Since then, the MSP market has matured. IT has evolved, cybersecurity challenges have exploded, and the basic operations of SMBs and SMEs have become even more complex. As a result, more organizations are building and investing in their own internal IT teams to keep up with the number of internal users they support. For growing MSPs, co-managed offerings have become a clear differentiator and revenue stream in a saturated market.
Co-managed is the most scalable client relationship you can build
The benefits of co-managed have been obvious since the start. Founded in deep collaboration and trust, co-managed relationships are the most scalable client relationships MSPs can build. When you create a strong co-managed bond, IT teams become your fiercest advocates inside the business.
When internal IT teams face a problem, they’re more likely to turn to a trusted partner for a solution. With their deep technical acumen, they’re more likely to understand what’s needed to realistically solve their challenges faster. This makes them easier to work with, and conversations can lead to expanded services much quicker.
Make your first 30 days count
Where co-managed can go sideways
Even with its advantages, embracing a co-managed IT model can be challenging for some MSPs. Most don’t struggle with the technical delivery, but it can be a tough transition adjusting to the cultural differences and acclimating to new operating models.
MSPs run into challenges when clear expectations and boundaries aren’t set from the start. When you’re tight with an internal IT team, it can be easy to fall into over-servicing or solving business problems outside of your scope. Maintaining a balance between being a trusted partner and not giving in to scope creep is an important part of building a trusted co-managed relationship that lasts.
Three moves from the author of the original co-managed playbook
Successfully mastering the art of co-managed IT can unlock exponential growth opportunities for MSPs, but the trickiest part is knowing where to get started.
We asked an expert, Bob Coppedge — author of The MSP’s Survival Guide to Co-Managed IT Services and I Don’t Want Your Job: Is Co-Managed IT Services the Right Fit for You? — about some of the pitfalls MSPs run into when getting their co-managed services started.
According to Coppedge, there are three main ways to maximize your co-managed potential:
1. Don’t let your marketing lead with: “Your current MSP sucks”
When it comes to forming lasting partnerships, collaboration is crucial, and first impressions are everything. Historically speaking, the MSP marketing mantra is based on the concept of “we’re so fantastic compared to how you support IT now.” If “your current IT support is falling short” is what people see when they first look at your messaging, they’re not going to come to you for a partnership. Focus on the difference you can make, and what you can offer that is going to make the organizations that work with you better. It’s easy to throw mud, but the more rewarding path is to lead with the positive. That’s the kind of partner you want to be seen as.
2. Know your standard offering
The MSP model runs on repeatable, scalable service, and co-managed is no exception. When you define a fixed solution for internal IT teams, you avoid reinventing the wheel every time you sign a new co-managed contract. You control the methodology of service, making sure that processes and workstreams are easily repeatable and based around how and where your technicians already work. The MSPs that struggle with co-managed usually don’t have a standard offering, because they let the client define the service instead. Most co-managed opportunities arise from similar pain points, so a clearly defined service that solves one of them earns attention, especially when so many co-managed offerings on the market are described in vague terms.
3. Start with the cost
It’s easy to sell 20-dollar bills for 19 dollars. In other words, it’s easy to lose money if you’re not pricing effectively before entering into a co-managed contract. Too many MSPs focus on the question of “how much would they pay?” Instead, set your price from the start. To do this, think about how much it’ll cost your MSP to provide this service, and know what you’re looking for in terms of profit margin. Those two variables should inform your price point.
One last pro tip for getting started: Look into what Coppedge calls Silo-IT offerings, which are a form of co-managed IT support specialized in one specific area, like backups or mobile device management. The easiest place to start is an offering that is already in your stack, that your technicians know well, and that handles a task the internal IT team currently owns. From there, it can grow into a fully co-managed partnership.
Bring order to IT asset chaos
If you’re not co-managing, you’re missing out
Embracing a co-managed model can be daunting and, like anything new, requires MSPs to adapt. However, the opportunity it provides to widen your customer base, verticalize your services, and diversify your offerings is too big a competitive advantage to ignore.
Internal IT teams will continue to grow as the IT environment becomes more complex. The MSPs that master co-managed IT and treat it as a core offering by integrating it into their marketing, sales, and standard services will be best positioned to future-proof their business and capitalize on growing managed services demand by building trusted, strategic roles within internal IT.
NinjaOne can help you build that co-managed practice. To see how we support MSPs, and why they stay with us, visit https://www.ninjaone.com/msp/.
