Managed Services: A new harmony of people and technology
Companies see managed services as part of their 'playbook' for sustained transformation
The only constant is change, whether you鈥檙e prepared or not. Nowadays, progressive companies are using managed services providers to not just keep up, but to drive ongoing transformation as their business models constantly evolve to meet changing needs.
In a recent survey of over 1,000 business leaders around the world1, companies see managed services as part of their 鈥榩laybook鈥� for sustained transformation:
73%
of companies have implemented managed services in at least some areas of the business.
62%
of respondents see managed services as clearly different from traditional outsourcing
Top goals include accessing new technology and driving strategic priorities.
Discover findings such as:
- Where companies are using managed services at scale
- Which functions are getting the most value from managed services
- Top tech in managed services
- Overcoming concerns in the way forward
How managed services can transform business outcomes
To get the most value from managed services, companies are seeking providers with capabilities聽beyond technology. Yes, advanced technologies are critical. But true transformation requires people and technology working in harmony鈥攖oward meaningful business outcomes, not just tech outcomes. They want managed services that are enabled by tech but led by strategy and knowledge鈥攊n digital, industry, and functional domains.
That鈥檚 why executives are choosing service providers based in large part on their expertise鈥攑articularly in specific industries, business processes, and data and analytics.
As companies move聽beyond cost cutting聽and labor arbitrage of traditional outsourcing, they are continually聽moving towards leading providers for high-value, knowledge-intensive processes. This reflects the move from a聽beyond the back-office聽legacy model of 鈥榶our mess for less鈥� to judgment-intensive work鈥攁nd not just in noncore processes. The work also includes core operations that historically were too mission-critical to transfer.
As the scope of managed services shifts to increase strategic value, the use of them has become a senior-level decision. In fact, more than half of respondents said the decision is made by C-level leaders, and another 17 percent said it鈥檚 made at the board level.
A new generation of modern services
As companies look at managed services in a new way, they鈥檙e implementing them more widely than in years past. The model is at a mature state of adoption with businesses moving beyond the back office, beyond cost savings, and beyond tech to drive strategic outcomes such as accelerated innovation, accurate forecasting, regulatory risk management, stakeholder trust, and agile adaption to market change.
Primary goals for adopting managed services
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The future of managed services
In turbulent times, it鈥檚 not enough to just transform. To sustain competitive advantage, organizations must do it continually鈥攚hich is why managed services have become a key part of the journey.
But tomorrow鈥檚 most effective operating models won鈥檛 be based on tech alone. Instead, as this study suggests, they will thrive at the intersection of innovation, expertise, and strategy.
Go from transactional to transformational with managed services
Explore how companies are operationalizing the use of managed services for strategic advantage as we share new research outlining high-value focus areas and strategies to better realize its value.
Hear more about how to effectively leverage the capabilities of service providers and chart a course for a future that embraces a managed services-led enterprise architecture.
Footnote
- 乐鱼（Leyu）体育官网 and HFS Research Managed Services Outlook 2023-2024
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