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.

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

Cyber ranked as the No. 1 area for managed services adoption in a recent KPMG survey.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

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.

key stats

50% more accurate forecasts

5x faster planning cycles

3x–5x improved returns on investment 

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.

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.

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

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

Amid expanding trade- and data-related complexity, 96% of companies use external providers to help them manage compliance challenges in areas like tax and legal requirements.2

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

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.

key stat

Organizations using managed services for KYC are seeing cost savings of up to 50%, with at least 35% faster processing speeds.

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

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

88% of buyers believe enterprise-wide deployment of managed services will create long-term cost advantages.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

Footnootes

  1. 2024-2025 KPMG and HFS Managed Services Outlook
  2. "Tariffs lit the fuse for bold enterprises to automate,” HFS Research, in collaboration with KPMG, July 2025.

How managed services can accelerate transformations

A survey of more than 1,200 global business leaders highlights the growing importance of managed services in critical areas like strategy, growth, and ongoing business transformation. Download the 2024-2025 KPMG and HFS Managed Services Outlook to learn more.

How KPMG can help

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KPMG Managed Services
Make the difference with KPMG Managed Services: Optimize operations, improve costs, and deliver value-creating transformations.

KPMG combines advanced technology, deep functional and sector expertise, and leading practices to handle knowledge-intensive processes across the business—both non-core and core—while 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.

Thank you

Thank you for your interest in the KPMG and HFS Research Managed Services Outlook 2024-2025 Survey Report.

Download the PDF below for more insights.

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KPMG and HFS Research Managed Services Outlook

A recent survey of over 1,200 global business leaders highlights the growing importance of managed services in accelerating business transformation. Download the 2024-2025 KPMG and HFS Managed Services Outlook to learn the key factors distinguishing transactional from transformational impact.

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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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