A new era for managed services. Modern companies rely on their managed services providers more than ever. That means those working relationships are evolving into strategic partnerships. KPMG provides deep, practical industry knowledge to help companies create lasting strategies covering everything from AI and tech advancements to ops and supply chains. Learn more.
Business leaders face a pressure-packed, constantly changing market. Amid a growing risk landscape, fast-moving technologies, and persistent talent gaps, executives are seeking new ways to help their organizations move more quickly and access much-needed expertise. And they’re turning to managed services providers for enhanced support to make it all happen.
For decades, companies have hired managed services providers to handle transactional, task-heavy functions—typically in back-office areas like IT, customer service, and HR. But as the landscape gets more complex by the day, organizations are now looking to a new class of modern managed services to provide strategic support and collaboration in critical functions across the enterprise.
These managed services providers aren’t just streamlining ops. They also offer an effective way for companies to help close talent gaps in key areas like AI, cybersecurity, and data and analytics.
We partnered with KPMG to learn more about the new trends in customer expectations that are driving changes in the managed services space.
A focus on ops
New tech, economic swings, and changing buyer needs, whew! Today’s market changes faster than many companies can adapt. And one-size-fits-all solutions won’t meet the needs of modern businesses. Historically, managed services providers were viewed as “set it and forget it” outsourcing solutions. But as today’s companies navigate new risks and disruptions, they need support and agility from all providers.
In fact, 9 in 10 companies want managed services providers that go beyond just handling transactional tasks, per a report from KPMG and HFS Research. Take IT services, for example. Covering IT tickets, troubleshooting system errors, and managing tech onboarding still matter. But many companies also want their IT managed services provider to help them with tasks like enhanced cybersecurity support, optimizing new technologies, and supporting digital transformations.
Going beyond means rethinking what companies need from managed services. Traditional transactional managed services are still around, but the demand from companies is shifting. Providers aren’t just outsourced efficiency; they’re also long-term innovation partners that can help companies enable game-changing technologies and significantly improve their operations.
A top example: Effectively leveraging AI and automation can transform time-consuming, high-risk processes into efficient, automated workflows, says Ron Walker, global and US managed services leader at KPMG. “In compliance operations, for example, a suspicious activity that used to take hours to evaluate and report on can now be done in just minutes through our automated systems,” Walker says. “This not only speeds up the process but also enhances the quality of the reports, ensuring that clients can address potential threats more effectively and in compliance with regulatory requirements."
Strategic support
Picture this: You’re in the C-suite of a growing company, but neither you nor your fellow leaders have strong AI expertise. It’s a concerning thought, right?
You’re not alone—every C-suite is wrestling with AI. Leaders are turning to managed services providers to make sense of AI and navigate new, industry-changing tools. The relationship is collaborative rather than transactional, with providers helping to guide the company through new technological innovations.
The KPMG and HFS research found that 80% of organizations want providers to become strategic partners. From consulting on company-wide issues and developing strategies to adapting to market changes, managed services are taking on a transformative, growth-focused role for their clients.
“The traditional KPIs still matter—response times, resolution targets, reporting,” says Sridhar Pattisapu, managing director, advisory, managed services solution & technology, KPMG LLP. “But companies now also want a partner who can help shape what’s next—future-state roadmaps and modernization that drive growth. With AI especially, they’re looking for guidance on where the tech fits, how to activate it, and how it ties into the bigger strategic picture.”
Mind the talent gap
Back in the day, managed services providers were seen as task executors hired for a specific set of skills. But as company priorities evolve with the market, providers can help them fill the talent gaps in their ranks.
Hiring and retaining top talent for mission-critical roles is hard enough, but the hiring struggles go deeper. As traditional hiring practices struggle to keep up with the speed of technology and innovation, managed services can provide rapid access to top talent.
Let’s use cybersecurity as an example. Instead of relying on a small (and often swamped) in-house security team, companies can leverage the flexibility of managed services providers that handle cybersecurity threats at scale.
"In cybersecurity, our teams seamlessly integrate into the client’s workflow, bringing tangible improvements and enhanced security,” says Cory Krutis, principal, advisory, managed services at KPMG US. “We quickly figure out what an organization is currently doing, integrate, and bring valuable recommendations. We align stakeholders, leverage technologies and industry expertise, and ensure change management that sticks. This approach addresses both internal and regulatory risks, delivering enhanced cyber services and real value.”
Data, data, data
Data is the name of the game for modern companies. But if buyers are working with out-of-date data systems and infrastructure, it’s hard to successfully leverage all that valuable data they’re collecting.
Legacy technology is limited, especially when systems are overwhelmed with years of overloaded data. Buyers looking to avoid data redundancy, inaccuracies, and backlogs are turning to managed services providers to solve the problem in perpetuity.
As companies move away from legacy systems, a whole new world opens up. AI and analytics can help streamline the analysis process and offer real-time visibility that delivers faster, better decisions. Managed services providers work with companies in areas ranging from legacy data extraction to mining expanded analytics opportunities.
No more silos
Managed services can also turn a company’s department-by-department data silos into a thing of the past. It’s a common challenge for many organizations: Standard data hygiene practices in one department might be simple, while another may require much more attention to detail.
These disparate solutions inevitably lead to company-wide inconsistencies and departmental silos. Providers can help organizations resolve patchwork data management issues by creating streamlined processes.
At your service
The market changes too quickly for the previous “see you next year” expectation for managed services providers. Modern problems require agile solutions—and that’s where KPMG comes in.
KPMG provides a multidisciplinary approach, deep industry knowledge, and skilled professionals to support core business functions. They help clients meet new challenges in the market and respond to opportunities across industries.
Learn about the trends reshaping the managed services space.
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