According to one recent study, the total managed services provider (MSP) market hit $278.9 billion in value as of 2022.
It was a trend that showed no signs of slowing down at the time, and the last few years have been particularly kind to those organizations as a result.
It doesn't matter what type of business you're running or even the industry you're operating in.
Regardless of your size or your target audience, you are a technology company whether you realize it or not.
Today's modern world moves faster and is more connected than ever.
Especially when you're talking about organizations like community banks, credit unions, and other financial institutions, technology is the foundation upon which a long-lasting relationship with your customers will be built.
This fact is the reason why the global market value of MSPs is expected to hit a massive $671.14 billion by as soon as 2030.
Organizations of all types know that they need technology to remain competitive and profitable - it's just that not all of them have the ability to create that type of environment on their own.
For those situations, managed service providers - and the co-managed IT solutions they often offer - are there to step in and lend a hand.
Co-managed IT services are largely what they sound like - a partnership between an organization's own in-house IT team and a trusted third-party provider.
For example, say that you're in charge of a small community bank that is in the process of scaling.
You know that your IT requirements will grow as the number of bank members does the same, but you may not have the ability - nor the resources - to bring in your own in-house technology people quickly enough to avoid disruption.
In that specific case, one of your options would be to enter into a co-managed IT services agreement with a managed services provider (MSP).
They would help fill in any gaps that exist in your own processes, allowing your in-house people to focus on the tasks that truly matter.
Unlike in other industries, co-managed IT services are not about replacing your existing employees at all.
The point of the relationship isn't to avoid bringing on new full-time workers.
It's to optimize things for the ones you already have, allowing them to work as efficiently as possible at all times.
This philosophical distinction is also the big way that co-managed services differ from a fully outsourced IT department.
With fully outsourced IT, all IT-related responsibilities for an organization are essentially transferred to the MSP.
With a co-managed relationship, there is still a balance. Internal teams will retain control over critical aspects of the environment, with the MSP team handling the rest.
From that point of view, it may be helpful to think of it as more of a "hybrid option" between in-house IT versus fully outsourced.
Truly, it allows you to enjoy the best of both worlds.
Because of the flexible nature of IT in general, there is no "one right way" to embrace co-managed IT services.
This is especially true if you're at the heart of an organization like a community bank. Instead, there are a number of fairly typical scenarios where co-managed IT would at least be beneficial, including but not limited to those like:
Note that not every one of these scenarios will necessarily apply to your own organization.
The ones that do apply may not even do so on a regular basis.
But when you need additional support for initiatives like those outlined above, co-managed IT services are there.
Another way to look at how co-managed IT can support internal teams is that managed service providers often provide access to tools, technologies, and even best practices that those internal teams might not be able to utilize.
Again - if you're a small community bank, you need to focus on maintaining a certain level of service for your membership.
You know that there are IT advancements that might help further that goal, but you don't have the money for the investment.
You don't have anyone who can set up that new solution.
You certainly don't have anyone that can maintain it over the long term.
Co-managed IT services providers, however, can fill that gap.
They can offer access to specialized training for your internal staff to upskill in emerging technologies.
They can even make it possible to make quick adjustments to services to meet your changing business needs without the significant capital investment that normally comes with them.
Even if you're just looking for something like 24/7/365 support that your people cannot provide, co-managed IT services can be the invaluable resource you've been waiting for.
They can continuously monitor and support critical systems so that your internal teams can get back to focusing on literally anything else.
But in addition to those larger projects, co-managed IT can also offer support with day-to-day operations as well.
This includes but is not limited to examples like:
To get an idea of a real-world application where co-managed IT would come in handy for a community bank, consider one of the most important topics of the modern era: cybersecurity.
According to one recent study, there were over 3,300 cyber incidents reported in the financial industry worldwide in 2023.
That is a staggering increase from just 1,829 a year prior.
These types of organizations are regularly the target of hackers and others with malicious intentions.
It's very possible that a small, community-focused bank might lack the resources needed to put up a good fight on its own.
In that scenario, the community bank might call in the assistance of an MSP to enhance its cybersecurity measures by way of a co-managed IT agreement.
The two organizations would share the responsibilities of threat monitoring and response, allowing the bank to reduce its vulnerability exponentially while still maintaining compliance with financial regulations at the same time.
Speaking of regulations, it's important to understand that co-managed IT can be especially beneficial in highly regulated industries such as finance.
By partnering with an MSP, a community organization can conduct regular audits and updates to ensure compliance.
The MSP can help maintain compliance with industry standards like PCI-DSS, so that the in-house employees of the community bank don't have to spend so much time worrying about winding up in an accidental violation.
MSPs can also assist with document management.
Creating and managing proper documentation is required for all financial services industry compliance.
Having said that, it's also notoriously menial and time-consuming work.
With an MSP and a co-managed IT agreement, that burden can be reduced for internal teams.
Of course, none of this is to say that the only thing you need to do is find any MSP, and all your technology-related needs are taken care of as a community bank.
As is true with any other vendor you might choose to work with, no two MSPs are created in quite the same way.
You will want to do heavy vetting to make sure you're winding up with a partner that understands you and that you can trust with tasks that are essential, like those outlined above.
To build and maintain that successful co-managed IT relationship, you'll want to lean into best practices like the following:
Even in a field that is seemingly perfect for automation like financial services, it's crucial to understand that co-managed IT services are not about replacing internal IT teams.
It's about making sure that they have the tools they need to create the most positive impression possible with your audience.
It's about providing them with the support necessary to help technology transform from a liability into a powerful tool right before their very eyes.
Understanding the division of responsibilities between internal IT staff and MSPs will go a long way toward helping you see how co-managed IT services can benefit you.
You get to leverage additional resources and expertise from the MSP that you may not have access to through other means.
From meeting industry-specific regulations (always a pinpoint in personal finance and financial services) to allowing you to remain competitive and push the envelope, a successful co-managed IT relationship is one that can go a surprisingly long way.
You just need to make sure that you're choosing a partner carefully, that they have industry-specific experience in the unique world of finance, and that they're otherwise on the same page regarding what the future looks like.
Provided that all those things are true, there really is no limit to what a community bank can accomplish with the right co-managed IT services provider by their side.
If you're interested in finding out more information about how co-managed IT services work within the context of organizations like community banks, or if you have any additional questions that you'd like to go over with someone in a bit more detail, please don't hesitate to contact us today.