Traveling through turbulence with new operating models

According to the KPMG 2024 Global CEO Outlook, leaders are optimistic about their organizations’ future, and they’ve identified a few operational priorities to help enable it.

Among their top areas of focus for the next three years, CEOs are striving to advance digitization and connectivity across their business while also future-proofing the skills of their workforce — especially for AI readiness.

Both priorities can help companies respond to compound volatility or the combination of interrelated, ever-changing risks that threaten short-term profitability and long-term prosperity. But these risks also mean there’s little margin for error in strategy and execution.

A good fit for managed services

That’s one reason progressive CEOs are revisiting their operating models, considering whether they can support continued digital transformation while adapting to day-to-day market change. Many are looking into managed services, which are well-suited for today’s priorities.

For example, one way to advance digitization and connectivity is with ongoing optimization of software-as-a-service (SaaS) platforms. Leading managed services providers have the expertise to perform integrations, configurations, and process customizations to help companies get the functionality they need from SaaS while turning it into a growth enabler — through improvements in operational resilience, customer experience, and more.

Managed services can also help prepare for emerging tech. According to the Global CEO Outlook, many respondents are betting big on generative AI, but only 38 percent are confident their employees have the right skills to use it.

The best providers, on the other hand, are investing significantly in digital acumen, including GenAI, cybersecurity, cloud, analytics, and data management. They combine this acumen with industry-specific process expertise embedded into all services, from regulatory compliance to application security. They also bring professionals with the innovative thinking, creative problem-solving, and strategic collaboration that some tech departments are struggling to get from their teams.

Achieving both agility and stability

Thanks to these advantages, many companies are embracing the sophisticated technology and talent of managed services in addition to building their own. As-a-service models can be a way to keep pace with rapid change and stay resilient amid volatility — with the reassurance of predictable costs, any-shore delivery, and the option to flex up or down to meet shifting needs.

Learn more about KPMG Managed Services.

For an archive of past blogs, please visit Going Beyond: Managed Services.