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6 ways modern managed services are driving business value

How enhanced service delivery is helping companies elevate core functions and operate with more speed and productivity.

Managed services are being transformed

No longer just a back-office fix, they’re now helping organizations solve front-line challenges, scale smarter, and generate new value. Indeed, for many leading companies today, the idea of using managed services solely for transactional tasks and cost-cutting is like expecting a flip phone to run your business apps.

But exactly where and how are modern managed services creating value for their clients? Increasingly, it’s in critical functions that would have been outsourcing afterthoughts just a few years ago.

So let’s take a closer look (no flip phone required) at six ways modern providers are delivering measurable impact, with real-world examples from some of today’s most in-demand service lines.

KPMG Managed Services Outlook 2026

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1 | Fortifying cybersecurity

The value

Finding skilled professionals to shore up critical security functions is a challenge for many organizations, with knock-on impacts felt across all operations. Modern managed services providers close the gaps with rapid access to specialized talent—minus the time, cost, and complexity of hiring in-house.

Key stat

Cybersecurity is a top-three area for managed services adoption (34%) and is one of the services most frequently deployed at scale across the enterprise (37%).1

Real-world execution

Leading service providers embed experienced cyber teams backed by advanced technology tools and threat intelligence. These scalable, on-demand cyber managed services are designed to cover the full scope of modern security operations:

  • Digital identity management enhances visibility and control over access, supporting efficient identity governance and zero-trust models
  • Cyber risk exposure management helps organizations identify, prioritize, and validate vulnerabilities in applications and infrastructure before attackers can exploit them
  • Threat management focuses on early risk detection, intelligent response, and proactive defenses at scale

How KPMG can help

KPMG Cyber Managed Services help strengthen defenses and upgrade operations with a human-led, AI-enabled approach.

2 | Elevating finance

The value

Finance teams are under pressure to do more with the company’s data—and do it faster, with sharper forecasts that support improved decisions companywide. But many are still dealing with fragmented systems, manual processes, and inconsistent data. Managed services providers modernize finance operations to streamline data, accelerate reporting cycles, and deliver value-creating insights.

Representative Results Include:

50% more accurate forecasts

5x faster planning cycles

3x–5x improved returns on investment

*Clients have experienced improvements within a range of outcomes; however, results vary by organization and are not indicative of future performance or the results that any particular organization may achieve.

Real-world execution

Fully managed finance as a service offerings support three tightly connected capabilities:

  • Transaction processing streamlines day-to-day finance operations via data automation that reduces manual effort—and errors—and improves turnaround times
  • Dynamic closing processes compress reporting timelines and improve accuracy and transparency through automation, workflow tools, and real-time data access
  • Intelligent forecasting leverages predictive models and scenario-based tools to generate smarter insights that drive better decisions
  • Crucially, these services are delivered through integrated data environments so that each finance activity feeds the next in a seamless, replicable cycle.

How KPMG can help

AI-Powered Finance as a Service by KPMG helps finance functions reduce costs and boost productivity.

3 | Optimizing the cloud and IT infrastructure

The value

As cloud and software as a service (SaaS) adoption accelerates, so do costs, complexity, and unrealized opportunities. Many companies struggle to manage sprawling digital environments, rein in infrastructure costs, and achieve the value they were expecting. In one recent survey, for example, just 25% of companies said they were getting the hoped-for impact from their SaaS investments. Managed services providers address these gaps with scalable solutions that optimize both performance and costs.

Key Stat

Among companies achieving value from SaaS, 75% say their managed services provider helped reduce technical debt—nearly double the effectiveness of internal approaches.2

Real-world execution

Managed application and cloud services (MACS) go beyond basic administration to deliver business-aligned outcomes across infrastructure, SaaS ecosystems, and data operations. Services include:

  • SaaS optimization eliminates waste, right-sizes licensing, and boosts utilization
  • Infrastructure scaling matches performance with demand to improve ROI
  • Retiring legacy systems helps reduce tech debt and maintenance costs
  • Embedded AI and automation tools add new capabilities that can reduce operational complexity

How KPMG can help

Cloud Platform Management helps maximize the benefits of cloud applications with strategic, agile, and adaptable managed services.

4 | Mastering tax and legal complexity

The value

Tax and legal teams face a cascade of challenges: regulatory churn, expanding complexity, and persistent pressure to do more with less. Many companies are dealing with increasingly global operations and a surge in new work: jurisdiction-specific tax filings, high-volume contract reviews, and ongoing uncertainty from tariffs and other geopolitical considerations that require careful attention from both tax and legal teams. As our research shows, a growing majority of organizations now rely on external service providers to help them streamline and scale both functions through integrated, tech-enabled models that enhance data management, improve accuracy, and provide much-needed bandwidth.

key stat

Tax (40%) and Governance, risk, and compliance (35%) are two of the top three managed services most frequently deployed at scale across the entire enterprise.1

Real-world execution

Tax and legal managed services often go hand in hand, especially when compliance, reporting, and commercial execution are intertwined. Leading providers support these critical areas through:

  • Global tax reporting and indirect tax compliance across jurisdictions
  • Tariff alignment and audit-readiness tools integrated into day-to-day workflows
  • Contract lifecycle management for high-volume legal agreements, including drafting, negotiation, execution, and remediation
  • Regulatory management via automated tracking of new legal and tax requirements
  • Workflow automation and data integration that improve speed and reduce manual effort across both domains

How KPMG can help

Tax Managed Services help evolve tax operations to meet intensifying demands. Legal Managed Services can transform routine legal work into strategic advantage.

5 | Accelerating risk and compliance decisions

The value

Amid persistent changes, waiting days to respond to risk and compliance considerations has cost trade-offs across the business. But with in-house resources often overwhelmed, even routine decisions can slow to a crawl. Modern services providers fully manage these critical functions, enabling companies to analyze changes faster and make smarter decisions sooner.

Representative Results Include:

70% of companies use managed services for Governance, Risk, and Compliance (GRC) either for an entire business function or at scale across the enterprise.1

Real-world execution

Risk and compliance managed services integrate skilled teams and robust governance frameworks to improve response time and confidence. Services include:

  • Know Your Customer (KYC) operations with digital outreach, AI-enabled reviews, and perpetual monitoring
  • Anti-Money Laundering (AML) program oversight, including triage, transaction monitoring, and global sanctions screening for faster threat detection
  • Sarbanes-Oxley (SOX) compliance and controls testing to reduce bottlenecks and improve audit readiness
  • Regulatory change tracking that integrates new requirements directly into workflows

How KPMG can help

KPMG KYC Managed Services uses AI, analytics and automation to help streamline customer due diligence and improve efficiency, accuracy and scalability of financial crime compliance.

6 | Scaling enterprise transformation

The value

Great ideas don’t create lasting impact unless they can scale. Many companies are investing in new tools, AI pilots, and function-specific innovations—but those efforts often stay siloed. Managed services providers help organizations operationalize innovation across teams, functions, and locations—turning early wins into enterprise-wide transformation.

key stat

The share of leaders expecting high or extremely high value from transformational managed services is set to rise from 44% today to 71% in two years.1

Real-world execution

Today’s leading service providers supply the operational backbone needed to scale innovation with consistency and speed. That includes creating centralized governance structures, enabling cross-functional collaboration, and applying discipline to what gets funded, tracked, and measured. These providers help companies:

  • Establish centers of excellence that promote knowledge sharing and process consistency
  • Integrate transformation roadmaps and platforms across the front, middle, and back offices
  • Deliver executive dashboards that track progress, outcomes, and adoption across functions
  • Ensure repeatable wins are captured and scaled—rather than reinvented team by team

How KPMG can help

The broad range of transformation services by KPMG apply an AI-enabled approach to change, helping organizations digitize processes, optimize operations, and realize measurable value.

Footnotes

  1. Accelerating AI with managed services: KPMG Managed Services Outlook Survey 2026 (KPMG, 2026)
  2. Source: KPMG Maximizing SaaS Value Report, 2025 (including research based on KPMG and HFS Research Cloud Adoption Survey, 2024)

KPMG Managed Services Outlook 2026

Get in-depth insights and data from our global survey report on accelerating AI transformation with managed services.

How KPMG can help

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Meet the team

Our KPMG 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’s operations and position your organization for long-term resilience.

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Bassam Khattab
Partner, Advisory, Managed Services US Leader, KPMG LLP
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Cory Krutis
Principal, Advisory, Managed Services, KPMG US

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