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Do Managed IT Services Replace Your Internal IT Staff?

August 14th, 2025 | 4 min. read

By Marissa Olson

If you are thinking about hiring a managed IT services provider, you might be wondering whether that means you no longer need an in-house IT team.

It is a common question and one that often leads to confusion when businesses explore their options.

The truth is that managed IT services can either replace or complement your internal IT staff, depending on your business needs.

The key is understanding how each model works and which one fits your organization best.

Why Does This Question Come Up?

The Misunderstanding About Managed IT Services

Some business leaders assume that managed IT providers take over every aspect of technology management, making an internal IT team unnecessary. Others think managed IT can only act as a backup to their existing staff. In reality, both are possible.

The Difference Between Replacement and Augmentation

Managed IT can replace your internal team in a fully outsourced model, or it can work alongside your employees in what is known as a co-managed IT model. The choice depends on factors like your company size, IT complexity, and budget.

What Do Managed IT Services Provide?

Monitoring and Maintenance

Managed IT providers use remote monitoring tools to watch your network, servers, and endpoints 24/7. They handle patch management, updates, and preventative maintenance to keep systems running smoothly.

Cybersecurity and Compliance

They implement security measures such as firewalls, antivirus software, intrusion detection, and data encryption. Many also help businesses meet compliance requirements for regulations like HIPAA, PCI DSS, or GDPR.

Help Desk and End-User Support

Managed IT teams provide support for your employees when they encounter technical issues. This can be available during business hours or 24/7, depending on your service agreement.

Strategic IT Planning

Good MSPs do more than fix problems. They help you plan for future technology needs, budget for upgrades, and align your IT with your overall business goals.

When Managed IT Can Replace Internal Staff

For Small Businesses Without a Dedicated IT Team

If you are a small company with no full-time IT staff, a managed service provider can act as your entire IT department. This gives you access to a broad range of skills without the cost of hiring multiple specialists.

In Fully Outsourced IT Models

Some organizations choose to have their MSP handle all IT functions, from help desk to strategic planning. This works well for companies that want to focus on core business functions and leave technology management entirely to experts.

Cost and Staffing Considerations

Hiring an internal IT team can be expensive, especially if you need multiple skill sets. An MSP can often deliver the same or better support at a predictable monthly cost.

When Managed IT Works Best Alongside Internal Staff

Scaling Support for Growing Teams

If your business is expanding quickly, your internal IT staff might not have the capacity to handle the increased workload.

An MSP can step in to cover help desk tickets, manage routine tasks, and free up your in-house team for higher-priority projects.

Handling Specialized Projects and Skills

Some IT initiatives, like cloud migrations, advanced cybersecurity, or complex network upgrades, require specialized expertise that your internal team may not have.

An MSP can provide these skills on demand.

Reducing Workload and Preventing Burnout

Internal IT staff often juggle multiple responsibilities. Partnering with a managed IT provider can help prevent burnout by taking on repetitive or time-consuming tasks.

Pros and Cons of Replacing vs Augmenting

Benefits of a Fully Outsourced Model

  • Lower staffing costs compared to hiring full-time employees

  • Access to a broad range of technical expertise

  • Simplified budgeting with a predictable monthly fee

Benefits of a Co-Managed Model

  • Retains in-house knowledge of company-specific systems

  • Offers flexibility to scale support as needed

  • Gives internal staff access to specialized skills and tools

Potential Drawbacks of Each Approach

  • Fully outsourced models may lack the day-to-day presence of internal staff

  • Co-managed models require clear communication to avoid duplicate work or gaps in coverage

How to Decide Which Approach Is Right for You

Assessing Your Current IT Capabilities

Look at the skills and capacity of your current IT staff. Are they able to keep up with support requests, maintenance, and strategic projects?

Considering Business Size and Complexity

Small businesses often benefit from full outsourcing, while larger companies may prefer co-managed models to retain in-house expertise.

Factoring in Industry Compliance Requirements

If your industry has strict compliance rules, ensure that whichever model you choose includes the necessary security measures and documentation processes.

Questions to Ask a Managed IT Provider

About Their Experience with Co-Managed IT

  • Have you worked with internal IT teams before?

  • How do you divide responsibilities between your team and ours?

About Response Times and Escalations

  • What is your guaranteed response time for critical issues?

  • How do you handle escalation if a problem is not resolved quickly?

About Flexibility and Scalability

  • Can we change the level of service as our needs evolve?

  • Are you able to take on short-term projects or temporary support roles?

Managed IT and Your IT Team: Final Recommendations

Managed IT services do not have to replace your internal IT staff, unless you want them to. Many companies find the best results come from a co-managed model where internal and external teams work together.

Others prefer a fully outsourced approach for cost savings and simplicity.

At AIS, we provide both fully managed IT services and co-managed IT support for businesses in Las Vegas and Southern California.

Whether you need complete outsourcing or extra hands for your existing team, our goal is to help you get the most from your technology.

For more insight into outsourcing decisions, reach out to us today!

Marissa Olson

A true southerner from Atlanta, Georgia, Marissa has always had a strong passion for writing and storytelling. She moved out west in 2018 where she became an expert on all things business technology-related as the Content Producer at AIS. Coupled with her knowledge of SEO best practices, she's been integral in catapulting AIS to the digital forefront of the industry. In her free time, she enjoys sipping wine and hanging out with her rescue-dog, WIllow. Basically, she loves wine and dogs, but not whiny dogs.