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      The managed services market is undergoing significant transformation as we navigate through 2025. Driven by advances in technology, shifting business priorities, and globalization, client requirements are evolving rapidly. Managed services now encompass a broad spectrum, including transformation, digital innovation, SaaS, ESG, Cyber, outsourcing of business processes (BPO), and a strategic mix of nearshore, onshore, and offshore delivery models. This article explores the key trends and challenges that define the managed services landscape in 2025.

      Emerging Trends in Managed Services

      1. Emphasis on outcome-based models

      Clients are no longer just seeking services; they are demanding measurable results and value. Providers are transitioning from traditional cost-based agreements to outcome-based models where success is gauged by specific KPIs capturing business outcome and impact. This shift requires deep domain expertise and a proactive approach to service delivery.

      2. Transformation through digital innovation

      Transformation is at the heart of managed services in 2025. Providers are not just managing existing processes, but are helping businesses reimagine their operations through digital innovation. This includes deploying cloud-native technologies, modernizing legacy systems, and fostering data-driven decision-making to drive competitive advantage.

      3. Integration of AI and automation

      Artificial Intelligence (AI) and automation technologies have become integral to managed services. From robotic process automation (RPA) for back-office tasks to low-code automation and AI-driven customer support agents, providers are leveraging technology to enhance efficiency, reduce costs, and deliver scalable solutions. Predictive analytics is also playing a pivotal role in preemptive issue resolution, elevating service reliability.

      4. Growth in Nearshore Services

      Nearshoring is experiencing a renaissance as companies seek the perfect balance between cost efficiency and collaboration. Nearshore locations offer the advantage of language availability, cultural alignment, proximity hence minimal time zone differences and high-quality talent pools. Eastern Europe remains a hotspot for nearshore managed services for the Belgian and Dutch markets.

      5. Cybersecurity as a core offering

      With increasing cyber threats, cybersecurity has moved from being an add-on to a core managed service. Providers are offering robust, end-to-end security solutions, including threat monitoring, incident response, and compliance management, ensuring businesses remain secure in an era of sophisticated cyberattacks.

      6. Sustainability and ESG compliance

      Environmental, Social and Governance (ESG) compliance has become a key differentiator for managed service providers. Companies are looking for partners who align with their sustainability goals, whether through energy-efficient data centers or socially responsible labor practices, and who are able to support the actual measurement of ESG performance.

      7. Importance of SaaS in Service Delivery

      Software-as-a-Service (SaaS) has become a cornerstone of managed services. Providers are leveraging SaaS platforms to streamline operations, reduce infrastructure costs, and offer scalable, subscription-based solutions. SaaS enables providers to quickly adapt to client needs while ensuring robust service levels and continuous updates.

      Daniël Pairon
      Daniël Pairon

      Partner, Head of Energy & Natural Resources and Managed Services | Advisory

      KPMG in Belgium

      Key challenges in the industry

      1. Talent acquisition and retention

      The ‘Great Resignation’ of the early 2020s has left a lasting impact, with skilled labor shortages posing a significant challenge. Providers are grappling with the need to attract and retain top talent while competing with technology companies and startups.

      2. Balancing cost and quality

      While cost efficiency remains a top priority, clients are unwilling to compromise on quality. Striking this balance is particularly challenging for offshore and nearshore providers who must invest in training, infrastructure, and technology to meet client expectations.

      3. Regulatory and compliance complexities

      As businesses operate in multiple jurisdictions, compliance with regional regulations has become a labyrinthine task. Providers need to stay ahead of global data protection laws, industry-specific regulations, and evolving cybersecurity mandates.

      4. Managing multivendor ecosystems

      Large enterprises often engage with multiple service providers, creating a fragmented ecosystem. Providers must demonstrate collaboration skills and offer integrative solutions that align with other vendors to deliver seamless experiences.

      5. Adapting to hybrid work models

      The hybrid work model, which combines remote and on-site work, has disrupted traditional service delivery frameworks. Managed service providers need to accommodate flexible arrangements while ensuring security, collaboration, and efficiency.

      Regional perspectives: Onshore, nearshore, offshore

      Onshore Services

      Onshore models remain critical for industries in Belgium and the Netherlands with strict compliance requirements or those needing close proximity for language and collaboration. While often more expensive, the model thrives in sectors such as healthcare, government, and financial services.

      Nearshore Services

      As mentioned earlier, nearshore services are gaining traction due to their balance of cost savings and operational convenience, for instance through language capabilities. Geographies such as the Baltic states, the Iberian Peninsula, Malta and most of the Eastern European countries are investing heavily in IT and BPO ecosystems to attract nearshore clients.

      Offshore Services

      Despite competition from nearshoring, offshore services continue to dominate due to their cost advantages and scalability. India and the Philippines remain leaders, with robust infrastructures and mature talent pools. However, these markets are evolving to provide higher-value services such as analytics and consulting rather than purely transactional tasks.

      Conclusion: The road ahead

      The Belgian and Dutch managed services market in 2025 is defined by innovation, agility, and a relentless focus on delivering value and tangible business outcome. Providers must embrace emerging technologies, foster strategic partnerships, and adapt to evolving client demands to stay ahead. Whether operating onshore, nearshore, or offshore, the key to success lies in offering flexible, outcome-driven solutions while navigating the complex challenges of a globalized economy.

      For organizations seeking managed services, understanding these trends and challenges is essential to selecting the right partner and achieving long-term success in an ever-changing business landscape.

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