For Australian businesses with 20–200 employees, choosing between co-managed IT and fully managed IT depends on internal capability, risk tolerance, and growth plans.
Fully managed IT typically costs $170–$300 AUD per user per month, while co-managed arrangements vary depending on scope and internal staff involvement.
Fully managed IT suits businesses without internal IT staff, while co-managed IT supports organisations with an existing IT manager who needs additional expertise, tools, or 24/7 coverage.
Here’s how the two models compare.
What Is Fully Managed IT?
Fully managed IT means the external provider handles:
- Helpdesk support
- Infrastructure management
- Cybersecurity
- Backup oversight
- Vendor management
- Strategic planning
- 24/7 monitoring
Best suited for:
- Businesses under 100 staff
- Organisations without internal IT
- Companies seeking predictable budgeting
What Is Co-Managed IT?
Co-managed IT is a partnership model.
The internal IT staff handles:
- Day-to-day user support
- Onsite presence
- Basic troubleshooting
The external MSP supports:
- Security monitoring
- Infrastructure expertise
- Escalations
- Strategic planning
- Advanced troubleshooting
- 24/7 coverage
This model enhances internal capability rather than replacing it.
Cost Comparison (Australia)
Fully Managed IT
- $170–$300 AUD per user/month
- Fixed predictable cost
- Bundled security tools
Co-Managed IT
- Flexible pricing
- Tooling + support layers
- Often lower per-user cost
- Internal salary cost still applies
Example:
An internal IT Manager in Australia costs
$110,000–$145,000 base salary
- superannuation and employment overhead
Co-managed still requires that salary investment.
When Fully Managed IT Makes More Sense
- No internal IT team
- High reliance on uptime
- Limited internal expertise
- Desire for fixed monthly costs
- Need for 24/7 monitoring
Most 10–75 employee businesses fall into this category.
When Co-Managed IT Makes More Sense
- Internal IT manager already employed
- Business over 75–100 employees
- Internal resource stretched
- Need for specialist cybersecurity
- Want enterprise-level tools without hiring more staff
This model strengthens internal IT rather than replacing it.
Brisbane Example
A 120-employee Brisbane engineering firm had a solo IT Manager overwhelmed by cybersecurity and vendor management.
They adopted a co-managed model:
- Internal IT handled daily tickets
- External MSP handled security stack, Azure optimisation, and monitoring
Results:
- Reduced ticket backlog by 35%
- Improved patch compliance
- Achieved faster incident response
- Reduced burnout risk for internal IT staff
Risk & Governance Considerations
Fully Managed:
- Clear accountability
- Single point of responsibility
Co-Managed:
- Shared responsibility
- Requires defined roles
- Needs strong communication
Ambiguity in responsibility creates risk.
Clear scope definitions are critical.
Final Thoughts: It’s About Structure, Not Size
For Australian businesses, the decision between co-managed and fully managed IT isn’t about which is “better” — it’s about which model aligns with your internal capability and risk profile.
If you lack internal IT leadership, fully managed IT is typically safer. If you have internal expertise but need depth and coverage, co-managed IT delivers flexibility and resilience.