How Much Does Co-Managed IT Cost in Detroit? (+ Price Factors)

Are you exploring co-managed IT services in Detroit but baffled by the lack of transparent pricing information? Detroit's burgeoning status as a tech hub, alongside its historic automotive glory, has turned it into a competitive battleground for businesses aiming to leverage technology for growth. You know your business can benefit from co-managed IT, but how much money should you invest in it and what are the key factors influencing its cost? 

Intelligent Technical Solutions (ITS) can help you answer these questions. We’ve been in the business for 20 years and believe transparency is the foundation of any successful IT partnership. So, in this article, we’ll shed light on the elusive pricing of co-managed IT services, offering you a clear breakdown of costs and the critical elements that affect them.   

This article will navigate you through: 

• The cost of co-managed IT  
• The three factors that affect pricing 

Alt text: Top view of professionals calculating co-managed IT expenses on laptops 

Cost of Co-Managed IT Services in Detroit vs. Alternatives 

Two alternatives to co-managed IT exist: fully managed IT and an in-house technician or team. Both are viable options that your Detroit business can choose to stay competitive. 

Fully managed IT costs around $2,500 to $3,000 monthly or $24,000 to $36,000 annually. Some MSPs also offer it at a per-user or per-device rate, at an average of $150 per user or device per month. 

As for co-managed IT, it’s typically two-thirds of the cost of managed IT. Based on the estimates above, co-managed IT costs can be between 16,000 and $24,000 yearly or a monthly cost of $50 per user or device. 

On the other hand, let’s discuss the cost of hiring a full-time and in-house technician who will act as your one-person IT team. According to salary.com, the average earnings of an IT professional in Detroit falls between $69,000 and $87,000, depending on their expertise and experience. That’s almost twice the cost of co-managed IT for one member. You will need more if you want an in-house team that can fulfill its roles. 

RELATED: The 6 Important Roles Your IT Team Should Perform 

On top of the recurring monthly fees for the service, MSPs could also charge an upfront onboarding fee. Depending on your needed service and equipment, it often costs $2,000 or more. Through onboarding, the external team gains access to your internal IT resources and integrates their own. 

In total, expect the total cost of co-managed IT services in Detroit to be around $24,000 to $36,000 yearly, plus an onboarding fee of $2,000 or more.

3 Factors that Affect Co-Managed IT Costs in Detroit 

At this point, you might be wondering where these numbers come from, so we’ll also explain the three determining factors of co-managed IT costs. 

1. Number of locations 

The number of locations matters a lot because it requires a lot of expertise, resources, and costs to manage them properly.   

An MSP needs to support each site adequately. They must also ensure that your entire network is coordinated. And finally, they need to merge your expansive IT infrastructure with their equipment and strategies. 

So, the more locations you have, the more you will be expected to pay out. And that applies to vice versa. 

2. Number of users 

As mentioned, MSPs often price per user or device. They consider the resources and staffing necessary to manage multiple workstations, which could include several pieces of hardware per person. They also account for onboarding, management, and support fees for each user and endpoint. 

3. Existing IT setup 

The final factor in co-managed IT pricing is your existing IT infrastructure. Businesses who are looking into this service employ the following setups: 

• One-person IT  

One-person IT is a setup where a lone technician handles all IT tasks. Although it is cost-effective and suitable for small businesses, it leaves little room for scaling and upskilling. A technician who has their hands full making sure operations are running smoothly won’t have the time to learn new tech that can improve your IT strategy. Moreover, they will eventually get overwhelmed with IT tasks as your business grows and your networks demand more management and maintenance. 

• Leaderless team 

A leaderless team comprises purely entry-level technicians with little to no expertise. They can handle minor problems but need guidance resolving high-level issues and deploying complex fixes. An MSP can provide a vCIO (Virtual Chief Information Officer) to fill this role and offer the expert guidance your team needs to manage and improve your technology. 

• Project-needing team 

Day-to-day IT tasks keep a project-needing team so busy that they struggle to make time for mission-critical projects. Important IT tasks like migrating to the cloud or implementing cybersecurity strategies could prove too time-consuming for them. In this case, you can look to co-managed IT for the specialized services you need for your business. 

Ready to Find a Co-Managed IT Partner in Detroit? 

Co-managed IT can help you stay competitive in Detroit’s budding business landscape. It allows for affordable technology management and utilization that will propel your business to great heights. 

ITS offers co-managed IT services to Detroit businesses of all types and sizes. You can check out our Co-Managed IT page to learn more about the service and our pricing. For specifics on how we can help your business, speak with one of our experts. 

We also have these other related pieces of content in our Learning Center for you to enjoy: 

• Top 5 Metro Detroit-Based Co-Managed IT Service Providers (MSPs) 
• Co-Managed IT: A Complete Guide For Businesses 
• [FREE TOOL] ITS Pricing Calculator