Managed IT Services is an IT services outsourcing model where you pay a fixed monthly fee to a third party expert service provider to offload all your business’s IT management work. An alternative approach is a “Time and Materials (T&A)” model, where you call on the service provider to come in only when you need help, and you pay an hourly rate for labor (usually in the range of $150-$250/hour), plus the cost of any materials used.