Companies want more from managed services. Here鈥檚 how a new class of providers is helping deliver strategic goals and drive growth.
For decades, companies have relied on managed services to offload transactional tasks and cut costs. But in today鈥檚 frenetic business world, with both challenges and opportunities coming from all directions, that commoditized approach to service delivery just isn鈥檛 enough.
To keep pace, companies need service providers who do more than just 鈥渒eep the lights on.鈥� They need a new level of modern managed services providers who bring super-charged capabilities that go beyond traditional outsourcing expectations to deliver strategic value across a much wider range of essential functions. 听 听听
As our research has shown, there鈥檚 a fundamental shift underway in managed services. Knowledge-intensive services are in ascendence, and no longer on just a one-and-done project basis. Company leaders are putting a premium on a new level of sophisticated service professionals who can help them build and run key areas of their business for the long haul.
These modern managed services providers have unique superpowers that can rapidly unlock new opportunities for their clients in both non-core and core functions, and across the front, middle, and back offices. They combine wide-ranging technology capabilities with enhanced data and insights, leading practices, and highly skilled teams鈥攁ll packaged in a multi-year, as-a-service subscription with predictable costs.
Most important, these superpowers are enabling their clients to move faster and create tangible new value with an ethos of continuous transformation that builds long-term competitive advantages and organizational resilience.
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Old-school managed services focused on completing generic tasks efficiently. But today鈥檚 modern services leaders take a results-first approach鈥攁ligning their services with business objectives like revenue growth, operational speed, and continuous innovation. Traditional performance indicators like service-level agreements give way to measurable transformation results, such as enterprise-wide technology enablement and improved data insights.
> 80%
of businesses now define modern managed services as the delivery of key processes or sub-processes on an outcome-based model vs. tactical outsourcing
Today鈥檚 leading providers aren鈥檛 just service experts, they鈥檙e tech trailblazers. They integrate AI-powered analytics, automation, and cloud-native solutions to unlock new levels of productivity and decision-making. Crucially, they help clients navigate the seemingly unending maze of technology options and opportunities to find the right fit for their business, based on their leading-edge experience with a wide range of technologies. Whether it鈥檚 predictive analytics for risk management, AI-driven cybersecurity, or process automations that speed up operations across multiple functions, these providers work hand-in-hand with clients to harness technology as a strategic enabler, not just a tool.
72%
of executives say modern managed services exceed expectations in providing rapid access to new technology
Generic process solutions are now table-stakes commodities. Modern managed services raise the ante by embedding skilled professionals who bring both industry-specific know-how and deep functional experience鈥攚hether in cyber, compliance, finance, cloud management, or other verticals. Their teams don鈥檛 just understand the technology鈥攖hey know the regulations, risks, and opportunities unique to each industry.
~ 9 in 10
business leaders say that modern managed services must have embedded process, domain, and technology proficiency to enable continuous transformation
Markets shift overnight. Companies facing economic uncertainty, regulatory changes, or competitive pressure need a managed services partner that can help them pivot and adapt quickly. Unlike rigid outsourcing contracts of the past, modern providers build flexibility into their models, helping their clients adjust strategies without missing a beat.
73%+
of companies are looking for strategic impacts from modern managed services in areas like business model transformations and technology innovation
Transactional outsourcing is squarely in the rearview mirror. Today鈥檚 leading providers act as strategic collaborators, working hand-in-hand with clients to co-design solutions, optimize workflows, and continuously refine strategies. They don鈥檛 just execute tasks鈥攖hey provide ongoing guidance and innovation.
89%
of companies believe that modern managed services must be delivered by a new class of providers鈥攏ot traditional outsourcing firms with a transactional heritage
The battle for talent is real, and next-gen managed services providers are giving their clients a competitive edge. They give businesses access to highly specialized professionals, from cybersecurity analysts to data scientists, solving intractable in-house talent and skills gaps that show no signs of abating.
only 19%
of businesses plan to use low-cost talent in their managed services model in the next two years, compared to 42 percent today
Next-gen providers aren鈥檛 just for IT support or back-office functions. They span the entire enterprise, front office to back, offering solutions in cybersecurity, compliance, finance, and more. And innovations and new capabilities that prove value in one area can quickly be scaled to others. This holistic approach eliminates silos and fosters cross-functional transformation.
81%
of buyers say enterprise-wide deployment of managed services will drive long-term value
Modern managed services offer predictable pricing models that balance efficiency with innovation. These providers reduce operational expenses while investing in long-term transformation, ensuring companies grow without surprise costs. As one example, their technology prowess can help companies reduce debt related to legacy technologies and data systems while also accessing leading cloud-based systems at predictable costs鈥攁nd with future updates baked into their services.
15-45%
in potential reduced operating costs
In today鈥檚 dynamic business world, standing still is not an option. Companies need more than traditional managed services鈥攖hey need partners with the superpowers to drive continuous transformation.
The rise of modern managed services providers is not just a shift in outsourcing models, but a fundamental redefinition of how businesses operate, innovate, and compete.
For many companies, the question now is no longer whether their business needs a sophisticated new level of managed services. It鈥檚 whether their partner has the superpowers to unlock their full potential.
A large majority of companies today are seeking as-a-service support in core areas of the business鈥攕trategy, innovation, transformation鈥攖hat would have been afterthoughts for a service delivery model just a few years ago, per 乐鱼(Leyu)体育官网 research. They want modern providers to help them solve the very modern and complex challenges they face today. Top among them:
乐鱼(Leyu)体育官网 combines advanced technology, deep functional and sector expertise, and leading practices to handle knowledge-intensive processes across the business鈥攂oth non-core and core鈥攚hile driving your strategic priorities. Our subscription-based services are designed to offer predictable costs, any-shore delivery, and the option to flex up or down to meet fast-changing needs.
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Source: All data points from 乐鱼(Leyu)体育官网 and HFS Managed Services Outlook 2024-2025
Our 乐鱼(Leyu)体育官网 Managed Services professionals bring significant functional, industry, and technology experience to every engagement, including the latest AI, cloud, and enterprise data capabilities. Please reach out to learn more about how our modern managed services can help you transform your company鈥檚 operations and position your organization for long-term resilience.