• Post a Project

What are Managed IT Services?

Updated September 18, 2025

Anna Peck

by Anna Peck, Content Marketing Manager at Clutch

Managed IT Services are when a company partners with a third-party provider for information technology support. This guide breaks down the ins and outs of managed IT services and their impact on businesses of all sizes.

Your office phone isn’t allowing calls to come through. Your wireless router keeps beeping. Your help desk is facing cybersecurity threats.

Who are you going to call? Your managed IT services provider.

Looking for a IT Services agency?

Compare our list of top IT Services companies near you

Find a provider

All businesses in this day and age have an IT infrastructure to keep their business dealings afloat. But does your company have the right IT support?

That’s where a managed IT services provider comes in to save the day.

This article acts as a guide to break down the concept of managed IT services, its benefits, differences between other IT services, and how a managed service provider can be a key aspect of your company.

Explore MSPs on Clutch’s directory of the top service providers.

What are Managed IT Services?

Managed IT services provide IT support to an organization as part of a contracted service. From the smallest IT-related tasks like changing a password to a complete network overhaul for phone lines and internet, that’s where IT managed services come into play.

What is a Managed IT Services Company?

For these services and tasks, a MSP or managed service provider is hired to lighten the load on an organization's internal team. A managed IT services company oversees all of the IT operations within a company, sometimes providing 24/7 coverage of IT duties and support tasks.

What is Included in Managed IT services?

Managed IT services can include a myriad of responsibilities that are often dependent on the company’s technological repertoire and ideas for pricing.

The following support services are generally offered by IT service providers:

Monitoring and Managing IT Infrastructure

IT experts watch over your computers, servers, and network equipment 24 hours a day. They use software that catches problems early (like if a server is getting full or a device isn’t working right) so you don’t get blindsided by a slow-down or a crash. On top of that, they manage your network resources to keep things running smoothly. This can mean prioritizing critical applications, balancing bandwidth, monitoring traffic patterns, and securing access points. By optimizing how storage, hardware, and processing power are used, they help prevent bottlenecks and reduce downtime.

Cybersecurity Protection

Cybersecurity services can include monitoring, penetration testing, or incident response. For example, they run tests that mimic attacks to find weak spots, and protect your infrastructure proactively. Your managed service provider can also educate employees on best practices, like creating strong passwords and avoiding suspicious emails. They may also help design internal security policies and frameworks so your team has clear guidelines for keeping data safe.

Automation 

Within your company’s IT infrastructure, automation includes installing updates, running backups, or fixing common glitches. Managed IT teams set up systems to do these automatically, saving time and reducing mistakes.

Management and Configuration of Cloud Services

If you use cloud platforms like AWS or Microsoft Azure, your managed team makes sure everything’s set up right, runs smoothly, and stays secure. They also help adjust your setup as your needs change (so you’re not paying for more than you use) and they oversee your cloud service providers,  to confirm that vendors are meeting their service level agreements (SLAs) for performance, uptime, and availability, giving you more confidence that your systems will stay reliable.

Help Desk Support

This service covers technical support for your employees and customers, including help with phone systems and internet access. When IT issues arise (like a dropped connection, a software error, or a device not working properly), your staff can reach out to the managed service provider’s help desk. The MSP will troubleshoot problems quickly to prevent them from escalating into larger disruptions and keep your team connected.

Data Center Coordination

These teams work closely with big service providers to keep your hosted software and servers running safely and efficiently, handling updates and security checks for you.

Data Backups and Upgrades

They regularly save copies of your important files to multiple places, so nothing gets lost. Plus, they keep your software and hardware updated with the latest patches to protect against threats and keep things running well. A strong MSP also develops a full backup and disaster recovery plan. This means setting up redundant backups across cloud, on-premise, or hybrid environments and outlining step-by-step procedures for restoring data after a cyberattack, accidental deletion, or even a natural disaster. That way, your business can resume operations quickly with minimal downtime.

Here is a quick glossary of terms that go hand in hand with managed IT services:

Network Management the oversight and prioritization of your computer network’s resources, including storage, hardware, bandwidth, and processing power, to keep critical applications running efficiently and securely.
Data backup and disaster recovery the regular copying and storing of business data in multiple locations to enable quick restoration of systems and information after events like cyberattacks, accidental deletions, or natural disasters.
Cybersecurity the implementation of protective measures and policies to safeguard computer systems, networks, and data from threats such as ransomware, phishing, and unauthorized access.
Cloud Management the setup, optimization, and monitoring of cloud-based applications, virtual machines, and databases to ensure efficient, secure, and cost-effective cloud operations.
Help Desk Support a technical support service that assists employees and customers with IT issues, helping troubleshoot and resolve problems before they escalate.
Cloud Computing the delivery of cloud services–including servers, storage, networking, intelligence, and analytics–over the internet to offer faster support and resources.
Help Desk a tool that supports a wide range of customer support activities that benefit organizations and their customers.
Infrastructure-as-a-service (IaaS) a service offering that includes virtualized hardware over a cloud computing environment.
Software-as-a-service (SaaS) a service offering that’s sometimes referred to as “software on demand.” This model uses a subscription basis for access to software that’s hosted by a specific provider to be used by an end-user via a client.
Disaster Recovery a team’s method of regaining access and functionality to their IT infrastructure after events like a cyber attack or natural disaster.
Penetration Testing a simulated cyber attack against an organization’s computer system to check for any opportunities for vulnerability.
Remote Monitoring the specification that helps MSPs monitor network activities of their clients remotely - these can be done through mobile devices, apps, or other IT management systems.
Service Level Agreement (SLA) an agreement that defines the level of service an organization expects from their vendor (or MSP in this case) – this contract lays out services and expectations for a partnership.
Break-fix Model refers to IT services provided and billed on as needed – as opposed to paying a fix monthly rate for IT support.
Downtime the time during which a machine is out of action or unavailable for use. MSPs can use this time to optimize a system or start troubleshooting any IT issues for their client.


Interested in cloud services and how your house IT team can assist? Check out this guide on cloud implementation.

How Much Do IT Managed Services Cost?

The cost of managed IT services depends on a few factors, like the needs of your business and how big your setup is. Per Clutch’s 2025 IT Services Pricing Guide, most projects cost somewhere between $10,000 and $50,000. Hourly rates are typically $100-$149 per hour, but that can change based on how much work and monitoring is involved, the number of users or devices you have, how specialized the work is, and the kind of support you’re looking for. For example, if you want 24/7 support, expect to pay more.

There are a few ways providers charge:

  • Hourly, often used for short-term jobs or jobs that are not clearly defined.
  • Fixed price, for projects that have a clear set of tasks
  • Monthly fee-based contracts, that cover ongoing support and give you predictable costs
  • User-based fees or device-based fees (based on the number of users/devices)

Knowing what you want from your provider can help narrow down their scope of work and give you an idea of what you’ll need to budget. Here’s a look at typical prices for some common IT services, based on recent data:

IT Service Type Average Hourly Rate (USD) Typical Pricing Model
BI and Big Data Consulting $25 – $49 Hourly
Cloud Consulting $100 – $149 Hourly, Project-Based
CRM Management $25 – $49 Hourly
Cybersecurity Consulting $100 – $149 Hourly, Retainer
Enterprise Content Management (ECM) Consulting $100- $149 Hourly
Enterprise Resource Planning (ERP) Consulting $25 – $49 Hourly
IT Strategy Consulting $100 – $149 Hourly, Project-Based
IT Staff Augmentation $25 – $49 Hourly
Managed Service Providers (MSP) $100 – $149 Hourly, Retainer, Per User/Device

What are the Benefits of Managed IT Services?

There are numerous benefits that businesses can gain from the right managed IT service provider. Outsourcing IT can reduce overall costs by 20–45%, while boosting operational efficiency by 45–60%. 

Consistent Support with Technology Services

MSPs can work after hours to perform updates and maintenance without disrupting your business day, and they staff to the response times defined in your SLA (e.g., 24/7 coverage when contracted).

Better Uptime Management

Since managed IT service providers can work on their own time, they can help manage systems and perform maintenance during your internal off hours. That matters: According to an Uptime Institute data survey, four in five organizations say their most recent serious outage could have been prevented with better management, processes, or configuration, and 54% report their last significant outage cost over $100,000 (16% exceeded $1 million). Scheduling updates/patches after hours and tightening change management with an MSP directly targets those preventable failures.

Efficiency

By hiring an MSP, your internal team can focus on tasks that generate revenue and business while leaving the troubleshooting to the experts. Hiring constraints amplify the ROI: 57% of senior tech leaders say hiring skilled IT talent remains challenging in 2025, even as 43% plan to add IT staff.

Scalability

An MSP can help scale your company’s IT infrastructure to new heights.

Proactive Monitoring and Cybersecurity

Since an MSP is focused on your system, they are able to predict any issues that can occur and ideally remedy them before they even happen, reducing the risk of cyberattacks by up to 50%.

Strategic IT Planning Insights

Since they’re experts in the world of technical support, a managed service provider can give your business tips for infrastructure upgrades, additions to your technology, and other insights in the IT services realm.

The benefits of managed IT services are endless – it is up to your company if this is the right amount of support you’d like for your business.

How to Choose the Right Managed IT Service Provider

Finding the right managed IT service provider can have a fantastic impact on your business’ efficiency, security, uptime, and growth. Use the checklist, questions, and red flags below to evaluate providers with confidence.

Assess your Current IT Situation

Before reaching out to prospective IT providers, inventory your current IT systems and pain points. Document the issues you want to solve, compliance requirements, business goals, and any gaps in coverage. Once you have a clear picture of where you are and where you want to go, it will be easier to communicate all of this to potential MSPs.

Verify Certifications and Qualifications

Look for current, industry-recognized credentials that map to your stack and risk profile, such as Microsoft Certified Partner, Cisco (CCNA/CCNP), CompTIA (Security+, Network+), ITIL, and security/compliance attestations like SOC 2 Type II or ISO 27001. Certifications signal a commitment to best practices and up-to-date security standards.

Checklist: 

  • Fit for your environment: Experience with your OS, cloud, and apps (e.g., Microsoft 365, Azure/AWS, Google Workspace, Salesforce).
  • Security posture: EDR/AV, email security, MFA, vulnerability management, backup/DR with stated RPO/RTO, incident response process.
  • Compliance support: Ability to support frameworks you care about (e.g., HIPAA, PCI DSS) and provide audit-ready documentation.
  • Reporting & visibility: Monthly health reports, ticket metrics, asset inventory, and executive summaries.
  • Scalability & coverage: Clear support hours, after-hours coverage, onsite vs. remote capabilities, and staffing depth.
  • Contracts & pricing models: Transparent per-user/per-device/tiered pricing, what’s in/out of scope, and a clean exit/transition clause.
  • Verifiable industry experience: Providers with sector-specific knowledge can anticipate challenges unique to your business.
  • Clear SLAs: Make sure service level agreements outline response times, uptime guarantees, and scope of support.
  • Onboarding & escalation: Documented kickoff plan, timeline, roles, and escalation paths (help desk → tiered engineers → vCIO).

Questions to Ask:

  • What specific services do you provide?
  • Can you share examples of similar companies you’ve helped?
  • What certifications does your team have?
  • What’s your approach to security and compliance?
  • How quickly do you usually respond to issues?
  • Do you offer monitoring and regular reports?
  • Why should I choose you for my IT needs?
  • How much do you charge? Are there extra fees I should know about?
  • How many IT professionals do you have, and what are their skills?

What to Watch Out For:

  • Providers who don’t share details about their team’s skills or certifications.
  • SLAs that don’t clearly define response times, uptime guarantees, and the scope of support.
  • No references or examples from past clients, case studies, or proof of past success.
  • Confusing pricing models with hidden fees or unclear terms.
  • Lack of proactive monitoring tools.
  • One-size-fits-all approach that won’t adapt to your business needs.

Choosing a provider is about compatibility and trust. Take your time, ask questions, and pick the one that feels right. For even more guidance, check out Clutch’s full Managed IT Services Guide.

What is the Difference Between Managed IT Services and Outsourced IT Services?

The difference between managed IT services and outsourcing is that, with outsourcing, your organization can pick specific services and ask an external company to help address those needs.

Instead of receiving IT support as needed, working with an MSP establishes an ongoing relationship – they provide a more holistic approach when it comes to technical services.

An MSP will integrate with your existing team, give advice and consultations, and more.

Pricing is a factor with any outside engagement – MSPs work with contracts so they likely will have a monthly fee or another pricing model while an outsourced IT service provider will provide the cost for the exact fix they’re working on.

There isn’t a right or wrong answer when it comes to choosing between an MSP or an outsourced IT services provider. It all depends on your company’s internal needs.

How Does a Managed IT Service Company Help Protect You?

When an MSP is hired, they will likely start with an audit of your current equipment and network to see where your business stands. After that, they will provide the best recommendations for your company’s growth and safety.

As mentioned earlier, MSPs provide security services to companies.

With this cybersecurity support, your managed IT services provider can help monitor instances of potential threats, complete penetration testing, and provide additional support that will prevent hacking and other issues.

Along with protecting your company from outside threats, an MSP can protect your company from another type of threat - like a natural disaster.

MSPs can provide backup and recovery services for your company’s hardware and software.

By ensuring your company is secure, an MSP is a great investment for businesses that center around their data.

Getting Started with Managed IT Services

Onboarding is the first step in building a smooth relationship with your managed service provider. Most MSPs spend 40 to 80 hours to onboard a new client, and the overall timeline is typically 4-6 weeks (30–45 days) from contract to steady state. 

While every provider’s approach is a little different, the process usually follows these key phases:

  • Pre-onboarding: Paperwork, questionnaires, and an initial call help the MSP learn about your business and IT setup before work begins.
  • Audit and assessment: The provider reviews and documents your hardware, software, network, and security policies to identify risks and opportunities.
  • Transition planning: The MSP creates a step-by-step plan, assigns team members, and sets up communication and escalation channels to keep the process clear and reduce disruption.
  • Implementation and configuration: Monitoring tools, security measures, and updates are put in place. This phase may also include system migrations or new policy rollouts.
  • Training and support setup: Employees are shown how to use the new systems, submit tickets, and get help when needed.
  • Ongoing monitoring: After onboarding wraps up, the provider shifts to day-to-day support, sending reports and optimizing your IT environment.

Handled well, onboarding reduces business disruption and builds confidence that your MSP can keep operations secure and efficient—especially when high-impact changes are scheduled after hours and status updates are shared weekly.

Hire a Managed IT Services Provider to Protect Your Business

Managed IT services and IT services, in general, have become a cornerstone of many businesses in this digital age. Everything is online, so your company needs to be best equipped to protect your company's value while securing more business.

A managed services provider or MSP can become a dedicated resource for your business, focusing on providing the best IT services while protecting your company from outside threats.

Find an MSP with a good track record by browsing Clutch’s directory of managed services providers.

Additional Reading:

About the Author

Avatar
Anna Peck Content Marketing Manager at Clutch
Anna Peck is a content marketing manager at Clutch, where she crafts content on digital marketing, SEO, and public relations. In addition to editing and producing engaging B2B content, she plays a key role in Clutch’s awards program and contributed content efforts. Originally joining Clutch as part of the reviews team, she now focuses on developing SEO-driven content strategies that offer valuable insights to B2B buyers seeking the best service providers.
See full profile

Related Articles

More

Top 20 Open Source Cybersecurity Tools for Small Businesses
When Do You Need to Hire a Cybersecurity Provider?
2025 Cybersecurity Best Practices for Small Businesses