Internal IT Services Versus Co-Managed IT Services Gold Coast

Updated October 6, 2023

Information technology (IT) is a vital aspect of business operations. It streamlines digital operations in your enterprise, including communication and online revenue generation techniques.

But with it comes the need to invest in IT infrastructure management. That explains the rapid growth of the IT services market in recent years, which is projected to reach USD$1.5bn in revenue by 2027, with annual growth of around 6.83%.

As a business, you can choose internal IT services or co-managed IT services Gold Coast to run and monitor your systems. Of course, there is no right or wrong choice, but both have pros and cons.

So, which one is ideal for your enterprise? This article will explore the differences between the two and help you make an informed decision.

What are internal IT services?

Internal IT Services

Internal IT services refer to the in-house IT department run by your business. This distinctive organizational unit manages and maintains the IT infrastructure and provides on-demand support for the rest of the departments.

What’s the structure of internal IT services? It may differ from one enterprise to another because it depends on the workflow methodology. However, this department generally involves several tiers of IT experts categorized based on their levels of expertise.

The leaders of internal IT units delegate various functions, including system design and maintenance, to other employees. These IT delegates solve the less common issues and train helpdesk agents to troubleshoot common system faults.

What are co-managed IT services?

Co-Managed IT Services

As the name suggests, co-managed IT services involve two entities, a business IT department and an outside party. A managed service provider (MSP) is hired to supplement internal IT services for better performance.

But why do most businesses opt for this partnership? Usually, it’s because they lack the personnel to perform all IT roles. Maybe they have fewer experts in the department, or the available employees lack the necessary skills. As such, businesses bring in external IT specialists to fill gaps.

Of course, the roles of the third-party provider will depend on the terms of the arrangement. In most cases, the MSP takes control of the network and security-related tasks. On the other hand, the internal staff will troubleshoot all computer system faults and offer their colleagues relevant support.

However, some business owners are comfortable when network and security issues are handled internally. So, they delegate helpdesk user support and other tasks to the managed IT services provider.

There is no standard combination of tasks; you must find one that makes sense to your business. Once you’ve decided, you can hire a partner that complements your plan. If you need tips choosing an MSP, consider the following factors:

  • The type of services they offer.
  • The experience and expertise of the technicians.
  • The firm’s reputation in the industry (read online reviews to gather more information).
  • Their commitment to cyber security.
  • The total cost of hiring a firm compared to additional in-house employees.

The success of your business today hinges on your choice of IT management strategy. Evaluating the pros and cons of in-house closely and co-managed IT services before making your final decision is essential. The following section will help you in that process.

Advantages of internal IT services

  • Direct control over IT infrastructure

This option gives you complete control over your IT systems, networks, and security. As such, the business has greater flexibility and can quickly implement new risk management policies.

  • In-depth understanding of business operations

In-house employees have first-hand experience with all internal operations. This understanding helps them anticipate and prevent system faults and security breaches. They can also customize IT solutions to fit the business’s specific needs.

  • Immediate availability

Having your IT engineer on-site means your business can receive support as soon as any fault occurs. This quick response minimizes downtime and improves customer experience.

Disadvantages of internal IT Services

  • Overall costs

It’s pretty expensive to hire and maintain in-house staff. The costs rise even higher considering that you must invest in necessary IT tools.

  • Limited skills

Many businesses don’t have the resources to access specialized IT expertise in the job market. Competing for skilled personnel isn’t easy, considering MSPs often offer better wages.

  • Lack of scalability

As you expand your business, responsibilities can overwhelm the current IT staff. Scaling this department involves hiring additional personnel and developing the office space. It can be pretty costly, especially for small businesses.

Pros and cons of co-managed IT services

Combining your in-house skills and MSP support can have the following advantages:

  • You can access specialized IT professionals because most MSPs prioritize experience and expertise in their hiring process.
  • This approach is more scalable than in-house IT services. You only need to adjust your subscriptions accordingly instead of investing additional staff and resources.
  • It’s cost-effective because the MSP does all the hiring and maintenance of the staff. Also, the monthly wages of these employees are shared across all your MSP’s clients.

But despite all these advantages, co-managed IT services aren’t short of drawbacks. Here are some of the disadvantages you should expect:

  • Your direct control over IT infrastructure may be somehow limited. But this depends on the terms of your agreement with the MSP.
  • There are potential communication issues between in-house IT staff and external technicians.
  • This communication breakdown can also lead to misaligned priorities between the two parties. Such problems can slow down your operations and hinder proper service delivery.

In-house and co-managed IT services have pros and cons, but which is the best option? The answer to this question depends on many factors, one of which is the nature of your business.

If you prioritize direct control over your IT infrastructure, internal IT services are ideal. On the other hand, co-managed IT services are suitable for businesses that need specialized IT support at an affordable price.


You must understand your business needs before picking between internal and co-managed IT services. Weigh the pros and cons of each IT management strategy and see which one aligns with your plan.

Internal IT services give you complete control over your system but require more funds. On the other hand, a co-managed approach allows you access to skilled technicians at an affordable price. So, consider your budget, in-house IT expertise, network complexity, and business scalability needs while making this decision.

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