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State governments modernize through managed services

Outdated tech has a domino effect, and that’s certainly true in government. It threatens security, resilience, and trust.

State governments modernize through managed services

Outdated tech has a domino effect, and that’s certainly true in government.

It threatens security, resilience, and trust. It cramps the experience of constituents and employees. And it affects the overall capabilities, processes, and delivery of the mission.

As a result, governments are transforming their operations, and many—especially state agencies—are using managed services in their playbook. That’s according to a KPMG survey of more than 100 government executives in North America[1].

Transforming the government experience

To treat citizens like customers, while improving processes and attracting skilled talent, modern governments are striving to build a seamless digital experience. This experience is also state agencies’ No. 1 criterion for considering managed services, according to the survey.

In fact, 84 percent of state government respondents expect managed services to significantly improve customer experience and satisfaction. And 94 percent expect the same for employee experience and satisfaction.

Enhancing technology and inspiring trust

Since technology is a key enabler of modernization, nearly 60 percent of state government respondents are using managed services for more than half their work in information technology, and one particularly high area of usage is cybersecurity.

These services—in areas like identity management, application security, and threat detection and response—are critical not only for building resilient systems but also for inspiring trust from stakeholders, including citizens, suppliers, employees, and others.

When systems are trusted, agencies earn stakeholders’ permission to transform—whether it’s by collecting data in new ways, expanding digital interaction through chatbots, or launching new online transactions.

Keeping up with the future

Technology is the linchpin of modern government, but transforming it can be hard to do with internal resources alone—especially when the demand for skilled talent outpaces the supply.

That’s why forward-thinking agencies are making managed services part of their blueprint. Leading providers combine human expertise with advanced technologies, data insights and leading practices to take over key processes—all in an as-a-service subscription with predictable costs, remote delivery, and strategic outcomes.

Learn more about KPMG Managed Services.


  1. KPMG and HFS Managed Services Outlook, October 2021

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David Brown
Global Head, KPMG Managed Services Principal, Advisory, KPMG US

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