Companies want more from managed services. Here’s how a new class of providers is helping deliver strategic goals and drive growth
For decades, companies have relied on managed services to offload transactional tasks and cut costs. But in a volatile business climate, with challenges and opportunities coming from all directions, that commoditized approach to service delivery just isn’t enough.
To keep pace, companies need service providers who do more than just “keep the lights on.” They need a next generation of modern managed services providers who can help enterprises navigate disruption with agility and scale. These providers go beyond traditional outsourcing expectations to deliver strategic value across a wide range of essential functions.
Modern managed services help enterprises drive continuous transformation through outcome‑based delivery models.
KPMG’s modern managed services are built around eight core “superpowers” that enable revenue growth, resilience, innovation, and cost predictability at scale.
As the 2026 KPMG Managed Services Outlook survey shows, there’s a fundamental shift underway in managed services. Knowledge-intensive services are in ascendence, and no longer on just a one-and-done project basis. Company leaders are putting a premium on a new level of sophisticated service professionals who can help them improve and run key areas of their business.
These modern managed services providers have unique superpowers that can rapidly unlock new opportunities for their clients in both non-core and core functions, and across the front, middle, and back offices. They combine wide-ranging technology capabilities with enhanced data and insights, leading practices, and highly skilled teams—all packaged in a multi-year, as-a-service subscription with predictable costs.
These strategic, as-a-service capabilities are enabling companies to move faster and create new value, grounded in an ethos of continuous transformation that builds long-term competitive advantages and organizational resilience. Let’s explore eight unique superpowers that set these next-gen service providers apart.
Old-school managed services focused on completing generic tasks efficiently. But modern services leaders take a results-first approach that aligns services with business outcomes like revenue growth, operational speed, and continuous innovation. Traditional performance indicators like service-level agreements give way to measurable outcomes, such as enterprise-wide technology enablement and improved data insights.
82%
of business leaders say there is a clear distinction between modern managed services as other kinds of outsourcing.1
Leading providers are tech trailblazers—and they are making AI capability their top consideration. They combine AI and automation capabilities with integrated technology solutions that can improve their clients’ productivity and decision-making. And they help clients navigate the dizzying array of technology options and opportunities to find the right fit for their business, based on their extensive experience with a wide range of technologies. These essential capabilities are also empowering organizations to manage expanding risk and complexity (trade disruptions, data security, geopolitical threats) while still moving the company forward and building a foundation for long-term resilience.
98%
of companies cite AI implementation as a critical priority.1
Generic process solutions have become table-stakes commodities. Modern managed services raise the ante by deploying skilled professionals who bring both industry-specific know-how and deep functional experience—in cyber security, compliance, finance, cloud management, and other critical functions. And these teams know the regulations, risks, and opportunities unique to each industry.
Provider expertise is paramount
When evaluating providers, buyers rank Al capability (36%), overall technology and platform expertise (21%), operational excellence (20%), and data expertise (18%) as top considerations.1
Business conditions can change overnight. Companies need a managed services partner that can help them pivot and adapt just as quickly—and the desire for strategic impact is accelerating. Unlike rigid outsourcing contracts of the past, modern providers build flexibility into their models, enabling clients to more nimbly adjust strategies and reset priorities.
27% increase
The share of leaders expecting high or extremely high value from transformational managed services is set to rise from 44 percent today to 71 percent in two years.1
Leading providers act as strategic collaborators, working with clients to co-design solutions, improve productivity, and continuously refine strategies. They provide ongoing guidance and innovation along with covering critical day-to-day tasks.
89%
of companies believe that modern managed services must be delivered by a new class of providers—not traditional outsourcing firms with a transactional heritage.
Next-gen managed services providers give their clients a competitive edge in the ongoing battle for talent—so much so that it is no longer viewed as a commodity. They embed expertise as integral components of the service itself, providing highly specialized professionals in hard-to-staff areas—cybersecurity, data science, compliance, IT infrastructure, tax and finance—that help clients quickly resolve in-house talent and skills gaps.
only 14%
of businesses rank accessing skilled talent as a goal of a managed services model, because talent is now viewed as embedded expertise within the service.1
Next-gen providers can add value across the entire enterprise—from the back office to the front—offering solutions in cybersecurity, compliance, finance, and more. And innovations and new capabilities that prove value in one area can quickly scale to others, fostering cross-functional transformation. Nearly 60% of companies are already using managed services either in an entire business function or at scale across the organization. This includes large-scale deployments in Tax (40%) and Cybersecurity (37%).
~60%
of companies are already using managed services either in an entire business function or at scale across the organization.1
Modern managed services offer predictable pricing models that balance efficiency with innovation. More than nine in ten (91 percent) of leaders say managed services have met or exceeded their expectations for delivering predictable costs. As one example: Next-gen providers can help companies access leading technologies at predictable costs while also reducing debt related to legacy technologies and data systems—and with future updates baked into their services.
15 - 45%
percent in potential reduced operating costs
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.
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.
This article draws on two recent surveys and research reports:
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.
