What Does a Managed IT Company Actually Do?

Jeremy Phillips, Founder & Principal of Athencia·February 5, 2026·5 min read·IT Operations & Management

If you've ever searched for IT help for your business, you've probably come across the term "managed IT" or "MSP" (managed service provider). But what does that actually mean? And how is it different from just hiring someone to fix your computer when it breaks?

This article breaks down what managed IT companies do, what you can expect from their services, and how to figure out if this model makes sense for your business.

The basic idea behind managed IT

A managed IT company takes responsibility for some or all of your technology infrastructure. Instead of waiting for something to break and then scrambling to fix it, they monitor your systems, apply updates, and address small issues before they become big problems.

Think of it like the difference between waiting for your car to break down on the highway versus getting regular oil changes and inspections. The second approach costs more upfront, but it keeps you from being stranded.

Most managed IT companies charge a flat monthly fee per user or per device. In exchange, you get ongoing monitoring, maintenance, and support. The specifics vary by provider, but the core concept is the same: predictable costs in exchange for proactive management.

What's typically included

Managed IT services usually cover several areas:

Monitoring and maintenance

Your provider watches your systems around the clock (or during business hours, depending on your plan). They track things like server health, disk space, backup status, and security alerts. When something looks wrong, they investigate before it affects your team.

Patching and updates

Software updates are tedious but important. They fix bugs and close security holes. A managed IT company handles this for your operating systems, applications, and security tools so you don't have to remember to do it yourself.

Help desk support

When your employees have IT problems, they contact your managed IT provider instead of trying to figure it out themselves or bothering a coworker who "knows computers." Good providers offer multiple contact methods: phone, email, chat, or a support portal.

Security tools and monitoring

Modern managed IT includes security. This might mean endpoint protection (antivirus and more), email filtering, security awareness training for employees, and monitoring for suspicious activity. Some providers include a security operations center (SOC) that watches for threats 24/7.

Backup and disaster recovery

Your data needs to be backed up, and those backups need to be tested. Managed IT providers typically handle this, ensuring your data is recoverable if something goes wrong.

What's usually extra

Some services cost additional fees on top of the base managed IT agreement:

  • Hardware purchases (computers, networking equipment)
  • Major projects like office moves or system migrations
  • Compliance management for regulated industries
  • On-site visits (many providers are remote-first)
  • After-hours emergency support (some include this, others charge extra)

Ask any provider you're considering what's included and what costs extra. The answers vary significantly.

How managed IT differs from other options

In-house IT staff

Hiring your own IT person gives you someone dedicated to your business. But one person can't be an expert in everything: security, networking, Microsoft 365, backups, and user support. They also take vacations and sick days. Managed IT gives you a team with diverse expertise and coverage beyond a single person's availability.

Break-fix support

Break-fix means you call someone when something breaks, they fix it, and you pay for that specific work. It's simple and feels cheaper in the short term. But it's reactive: you're always dealing with problems after they've disrupted your business. Managed IT flips this model to prevention.

Hiring a consultant

IT consultants are great for specific projects or strategic advice, but they're not designed for day-to-day operations. You might hire a consultant to plan a cloud migration and a managed IT provider to run your systems afterward.

Signs you might need managed IT

Not every business needs managed IT. But you might benefit from it if:

  • Your team wastes time dealing with IT issues instead of their actual jobs
  • You've been hit by a security incident or close call
  • You're growing and your informal IT setup isn't scaling
  • You handle sensitive data (client information, financial records, health data)
  • You can't afford downtime and need systems that just work
  • You want predictable IT costs instead of surprise bills

Questions to ask a managed IT provider

Before signing up, get clear answers to these questions:

  1. What's included in the monthly fee versus billed separately?
  2. What are your response time targets for different issue types?
  3. What security tools and practices do you use?
  4. How do you handle onboarding for new clients?
  5. Can I see references from businesses like mine?
  6. What happens if we need to part ways?

The answers will tell you a lot about whether the provider is a good fit.

The bottom line

Managed IT companies exist to handle your technology so you can focus on your business. They monitor, maintain, and support your systems for a predictable monthly cost. The value comes from prevention: catching issues early, keeping systems updated, and having experts available when problems do occur.

Whether this model makes sense for you depends on your business size, complexity, and tolerance for IT headaches. But if you're tired of technology problems interrupting your work, managed IT is worth investigating.

Frequently Asked Questions

What's the difference between break-fix IT and managed IT?

Break-fix IT means you call someone when something breaks and pay for repairs. Managed IT is proactive: you pay a monthly fee and the provider monitors, maintains, and fixes issues before they cause downtime. Managed IT typically costs more upfront but saves money by preventing problems rather than reacting to them.

How much does managed IT cost for a small business?

Managed IT services typically cost between $50 and $200 per user per month, depending on the level of service. Basic plans include monitoring and patching. Comprehensive plans add unlimited support, security tools, compliance management, and vendor coordination. Most providers offer tiered pricing based on what you need.

Can I keep my current software and systems with a managed IT provider?

Usually, yes. A good managed IT provider will assess your current setup and integrate with the tools you already use. They may recommend changes if something is outdated or creates security risks, but the goal is to improve your environment, not force you to start over.

What should I look for when choosing a managed IT company?

Look for transparent pricing, clear response time commitments, security certifications or frameworks they follow (like CIS Controls), and references from businesses similar to yours. Ask about their onboarding process and how they handle emergencies. Avoid providers who won't explain what's included or push long-term contracts before you've worked together.

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