The 8 superpowers of modern managed services
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 today’s frenetic business world, with both 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 new level of modern managed services providers who bring super-charged capabilities that go beyond traditional outsourcing expectations to deliver strategic value across a much wider range of essential functions.
Powering up with modern managed services
As our research has shown, 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 build and run key areas of their business for the long haul.
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.
Most important, these superpowers are enabling their clients to move faster and create tangible new value with an ethos of continuous transformation that builds long-term competitive advantages and organizational resilience.
Let’s explore eight unique superpowers that set them apart
1 | Outcome-oriented vision
Old-school managed services focused on completing generic tasks efficiently. But today’s modern services leaders take a results-first approach—aligning their services with business objectives like revenue growth, operational speed, and continuous innovation. Traditional performance indicators like service-level agreements give way to measurable transformation results, such as enterprise-wide technology enablement and improved data insights.
> 80%
of businesses now define modern managed services as the delivery of key processes or sub-processes on an outcome-based model vs. tactical outsourcing
2 | Tech and AI enablers
Today’s leading providers aren’t just service experts, they’re tech trailblazers. They integrate AI-powered analytics, automation, and cloud-native solutions to unlock new levels of productivity and decision-making. Crucially, they help clients navigate the seemingly unending maze of technology options and opportunities to find the right fit for their business, based on their leading-edge experience with a wide range of technologies. Whether it’s predictive analytics for risk management, AI-driven cybersecurity, or process automations that speed up operations across multiple functions, these providers work hand-in-hand with clients to harness technology as a strategic enabler, not just a tool.
72%
of executives say modern managed services exceed expectations in providing rapid access to new technology
3 | Industry and domain mastery
Generic process solutions are now table-stakes commodities. Modern managed services raise the ante by embedding skilled professionals who bring both industry-specific know-how and deep functional experience—whether in cyber, compliance, finance, cloud management, or other verticals. Their teams don’t just understand the technology—they know the regulations, risks, and opportunities unique to each industry.
~ 9 in 10
business leaders say that modern managed services must have embedded process, domain, and technology proficiency to enable continuous transformation
4 | Transformational agility
Markets shift overnight. Companies facing economic uncertainty, regulatory changes, or competitive pressure need a managed services partner that can help them pivot and adapt quickly. Unlike rigid outsourcing contracts of the past, modern providers build flexibility into their models, helping their clients adjust strategies without missing a beat.
73%+
of companies are looking for strategic impacts from modern managed services in areas like business model transformations and technology innovation
5 | Consultative collaborators
Transactional outsourcing is squarely in the rearview mirror. Today’s leading providers act as strategic collaborators, working hand-in-hand with clients to co-design solutions, optimize workflows, and continuously refine strategies. They don’t just execute tasks—they provide ongoing guidance and innovation.
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
6 | Talent-centric solutions
The battle for talent is real, and next-gen managed services providers are giving their clients a competitive edge. They give businesses access to highly specialized professionals, from cybersecurity analysts to data scientists, solving intractable in-house talent and skills gaps that show no signs of abating.
only 19%
of businesses plan to use low-cost talent in their managed services model in the next two years, compared to 42 percent today
7 | Enterprise-wide scalability
Next-gen providers aren’t just for IT support or back-office functions. They span the entire enterprise, front office to back, offering solutions in cybersecurity, compliance, finance, and more. And innovations and new capabilities that prove value in one area can quickly be scaled to others. This holistic approach eliminates silos and fosters cross-functional transformation.
81%
of buyers say enterprise-wide deployment of managed services will drive long-term value
8 | Predictable, sustainable costs
Modern managed services offer predictable pricing models that balance efficiency with innovation. These providers reduce operational expenses while investing in long-term transformation, ensuring companies grow without surprise costs. As one example, their technology prowess can help companies reduce debt related to legacy technologies and data systems while also accessing leading cloud-based systems at predictable costs—and with future updates baked into their services.
15-45%
in potential reduced operating costs
Navigating the road ahead
In today’s dynamic business world, standing still is not an option. Companies need more than traditional managed services—they need partners with the superpowers to drive continuous transformation.
The rise of modern managed services providers is not just a shift in outsourcing models, but a fundamental redefinition of how businesses operate, innovate, and compete.
For many companies, the question now is no longer whether their business needs a sophisticated new level of managed services. It’s whether their partner has the superpowers to unlock their full potential.
Challenge accepted.
A large majority of companies today are seeking as-a-service support in core areas of the business—strategy, innovation, transformation—that would have been afterthoughts for a service delivery model just a few years ago, per KPMG research. They want modern providers to help them solve the very modern and complex challenges they face today. Top among them:
- Cost predictability: Beyond cutting costs, many companies are struggling with cost visibility, often bogged down by legacy tech debt and lack of experience with new cost models.
- Constant disruption: Market shifts, regulatory changes, and digital acceleration mean yesterday’s solutions won’t work tomorrow (and many struggle to keep up today). Companies need more help in fast-moving, business-critical areas like cybersecurity and compliance operations.
- Tech overload: AI, automation, and cloud solutions evolve rapidly, making it hard to keep up—which often generates a “fear of missing out” knee-jerk response that rarely ends well. The sheer number of different applications, data systems, and cloud tools in play today can be overwhelming for even the most sophisticated technology companies.
- The need for speed: Companies must launch new products and services faster than ever, but many continue to be bogged down by operational bottlenecks in core functional areas.
- Talent scarcity: Skilled professionals remain stubbornly hard to find and retain, leaving leadership with too many priorities and not nearly enough talent to cover them all.
How KPMG can help
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.
Source: All data points from KPMG and HFS Managed Services Outlook 2024-2025
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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.
