One of the first questions organisations ask when considering co-managed IT is:
"How much is this going to cost?"
It's a fair question, and one that many IT providers avoid answering directly.
The reality is that co-managed IT costs vary depending on the size of your organisation, the capabilities of your internal IT team, and the level of support you require. However, understanding the typical pricing ranges can help you budget effectively and determine whether co-managed IT offers better value than hiring additional staff.
In this guide, we'll break down typical co-managed IT costs, explain what influences pricing, and compare the cost of co-managed IT with hiring internal IT resources.
The Short Answer
Most organisations can expect to invest between:
£25 and £100+ per user per month
for co-managed IT services.
For example:
| Users | Typical Monthly Cost |
|---|---|
| 25 Users | £625 - £2,500 |
| 50 Users | £1,250 - £5,000 |
| 100 Users | £2,500 - £10,000 |
| 250 Users | £6,250 - £25,000 |
The exact figure depends on how much responsibility your MSP takes on and the complexity of your IT environment.
Because co-managed IT is highly flexible, pricing varies far more than traditional managed IT services.
Why Co-Managed IT Pricing Varies
Unlike fully managed IT support, where the MSP typically handles everything, co-managed IT is designed to supplement your existing team.
Some organisations only require cybersecurity expertise.
Others need project delivery support, Microsoft 365 management, or access to third-line engineers.
The more support you require, the higher the investment.
What Influences Co-Managed IT Costs?
1. Size of Your Organisation
The number of users, devices, and locations directly impacts support requirements.
A 25-user charity with one office is very different from a 250-user housing association operating across multiple sites.
Generally speaking:
- More users = higher support requirements
- More devices = increased management effort
- More locations = increased complexity
2. Existing Internal IT Capability
The strongest pricing factor is often the capability of your internal team.
For example:
Internal IT Manager
If your IT manager handles most day-to-day operations and only needs specialist support, costs are typically lower.
Small Internal IT Team
If your team manages support but requires project assistance, cybersecurity expertise, and escalation support, costs are likely to be moderate.
Under-Resourced Team
If your internal team needs substantial assistance with operations, projects, and security, costs will increase accordingly.
3. Cybersecurity Services
Many organisations use co-managed IT specifically to strengthen cybersecurity.
Services may include:
- Security monitoring
- Microsoft 365 security management
- Multi-Factor Authentication (MFA)
- Vulnerability assessments
- Cyber Essentials support
- Endpoint protection
- Incident response planning
Adding advanced cybersecurity services increases investment but often delivers significant risk reduction.
4. Microsoft 365 Management
Many internal IT teams require support with:
- Microsoft 365 administration
- SharePoint
- Teams
- Intune
- Azure
- Security configuration
The more responsibility delegated to the MSP, the greater the cost.
5. Helpdesk Support
Some organisations use co-managed IT to provide:
- Overflow support
- Out-of-hours support
- Holiday cover
- Escalation support
The level of user-facing support provided affects pricing.
Typical Co-Managed IT Pricing Models
Most providers use one of three approaches.
Per User Pricing
The most common model.
Pricing is based on the number of supported users.
Typical range:
£25–£100+ per user per month
Fixed Monthly Retainer
Some organisations pay a fixed fee for:
- Strategic support
- Cybersecurity oversight
- Technical escalation services
Typical range:
£1,000–£5,000+ per month
depending on scope.
Project and Consultancy Services
For major initiatives such as:
- Microsoft 365 migrations
- Cloud projects
- Security improvements
additional project fees may apply.
Example Cost Scenarios
Scenario 1: Charity with 30 Users
The charity employs an IT manager but needs:
- Microsoft 365 expertise
- Cybersecurity support
- Holiday cover
Typical Investment:
£750–£2,000 per month
Scenario 2: Housing Association with 80 Users
The organisation requires:
- Security monitoring
- Cyber Essentials support
- Microsoft 365 management
- Technical escalation services
Typical Investment:
£2,500–£6,000 per month
Scenario 3: Manufacturing Business with 150 Users
The company requires:
- Infrastructure support
- Cybersecurity services
- Project delivery
- Production system expertise
Typical Investment:
£5,000–£12,000+ per month
Is Co-Managed IT Cheaper Than Hiring Another IT Employee?
In many cases, yes.
Consider the cost of hiring a skilled IT professional.
Internal IT Manager
Typical salary:
£40,000–£70,000+
Plus:
- National Insurance
- Pension contributions
- Recruitment fees
- Training costs
- Holiday cover
Total employment cost can easily exceed:
£50,000–£85,000+ per year
Cybersecurity Specialist
Typical salary:
£50,000–£90,000+
Microsoft 365 Specialist
Typical salary:
£45,000–£80,000+
The challenge is that most organisations need expertise across several disciplines, not just one.
Co-managed IT often provides access to multiple specialists for less than the cost of hiring additional full-time employees.
What Should Be Included in a Co-Managed IT Agreement?
When comparing providers, don't focus solely on price.
Understand exactly what's included.
Typical services may include:
Technical Support
- Escalation support
- Third-line engineering
- Infrastructure expertise
Cybersecurity
- Security monitoring
- Threat protection
- Cyber Essentials guidance
Microsoft 365
- Administration
- Security management
- User support
Strategic Services
- Technology planning
- Vendor management
- Security reviews
The cheapest option isn't always the best value.
Common Pricing Mistakes Organisations Make
Comparing Co-Managed IT to Helpdesk Support
Co-managed IT is often a strategic service rather than simply a support function.
Ignoring Cybersecurity Costs
Many organisations underestimate the resources required to manage cybersecurity effectively.
Focusing Only on Monthly Fees
Consider:
- Reduced recruitment costs
- Improved security
- Faster project delivery
- Access to specialist expertise
Underestimating Internal Resource Constraints
A lower-cost solution may still leave your internal team overloaded.
How to Calculate the Right Budget
Ask yourself:
What Skills Are Missing Internally?
Cybersecurity?
Microsoft 365?
Cloud expertise?
Project management?
What Is the Cost of Delayed Projects?
Many organisations justify co-managed IT through improved project delivery alone.
What Would Additional Recruitment Cost?
Compare annual employment costs against outsourced support costs.
How Important Is Cybersecurity?
The higher your compliance and security requirements, the greater the value of specialist expertise.
Final Thoughts
Co-managed IT pricing varies significantly because every organisation's needs are different.
Most organisations should expect to invest between £25 and £100+ per user per month, depending on the level of support required.
For businesses, charities, housing associations, and professional services firms with existing IT resources, co-managed IT often provides a cost-effective way to access specialist expertise, improve cybersecurity, support strategic projects, and reduce pressure on internal teams without the cost and complexity of hiring additional employees.
The most important question isn't simply "How much does co-managed IT cost?"
It's whether the expertise, capacity, and risk reduction it provides deliver greater value than the alternatives.
For many organisations, the answer is yes.
Get a Tailored Co-Managed IT Estimate
Every organisation's requirements are different.
If you'd like a more accurate estimate based on your internal IT capabilities, user count, cybersecurity requirements, and business goals, speak to the Stratiis team for a no-obligation consultation and pricing review.
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