Modern managed services: A strategic response to trade disruption

KPMG-HFS survey reveals how enterprises are responding to tariffs and global volatility by accelerating AI and automation through managed services.

How are US trade and tariff policies impacting service delivery, managed services and outsourcing strategies among major enterprises? A KPMG LLP (KPMG) and HFS Research survey reveals how organizations are preparing for and responding to tariffs, as well as for global disruption more broadly.

Tariffs may soon be a distant memory or an entrenched reality, but either way, they have hastened an inevitable shift toward a new normal: volatility. To address it, companies are under pressure to integrate AI and automation throughout their operations to enhance enterprise agility and resilience.

Modern managed services offer a direct path forward. By delivering innovation, along with security, governance and risk management, a managed services model allows organizations to deploy and scale AI and automation with greater speed and confidence than going alone.

Survey highlights

This is not a crisis of awareness—but one of readiness.

The threat is not receding but rather accelerating.

52%

say that current trade policy is already disrupting delivery.

74%

expect trade policy to disrupt service delivery in the next two years.

Not everyone is retrenching.

A small but significant subset of organizations is using chaos as the impetus for reinvention.

38%

of businesses have paused or delayed most planned initiatives until more clarity emerges.

40%

have made immediate, selective adjustments to investments or transformation plans.

15%

have accelerated major transformation or modernization initiatives.

The real shift isn’t away from outsourcing, but away from people-based, location-dependent outsourcing models and toward outcome-based, automation-enabled services.

Ron Walker

Global Head of Managed Services at KPMG LLP

Enterprises aren’t fleeing geography; they’re automating around it.

When disruption strikes, enterprises don't start with relocation or renegotiation. They turn to automation. It's faster, quieter, and avoids the red tape of structural change.

83%

of enterprise leaders said they’re either already accelerating or are very likely to accelerate AI and automation initiatives in response to the geopolitical and trade uncertainty.

40%

said they will act within the next 12 months, more than any other tactic by a significant margin.

Enterprises are no longer buying services—they’re investing in agility.

Over the next 24 months, traditional outsourcing models are expected to drop while modular and software-based services—including embedded platforms, AI-powered workflows, and automation-first delivery—will more than double.

From 55% to 37%

The expected drop in traditional people-based outsourcing

From 14% to 30%

The expected increase in software-based, AI-powered service delivery, with minimal human labor

Why modern managed services are now essential

For many organizations, the speed of AI adoption is outpacing their readiness to use it. The pressure to modernize is real. But so, too, are the risks that come with rapid deployment of AI and the operating model changes required to realize value from it. In the race to automate and scale AI, critical areas such as security, governance, and risk management are often deferred or bolted on as an afterthought. Data, too, is often a major roadblock, with entrenched issues around data quality, access, and governance blocking meaningful execution.

Modern managed services providers bridge this critical gap. They help organizations lead with automation and AI that propel business transformation, but they also pair that innovation with secure, scalable delivery models aligned with strategic priorities.

As the KPMG-HFS survey shows, demand for modern managed services is redefining the outsourcing model. Given the velocity of change, many organizations will take advantage of modern managed services providers to scale AI and automation with structure, speed, and strategic execution to thrive in the face of volatility.

Survey methodology

In June 2025, KPMG and HFS Research collaborated to field a survey of US-based senior executives from companies with greater than $2 billion in revenue. More than 400 executives across seven major industries participated. In addition, in-depth interviews were conducted with senior executives from Global 2000 organizations.

More from KPMG and HFS

Podcast: Trade volatility and the reinvention of managed services

Hear from Ron Walker, Head of Global Managed Services at KPMG, as he unpacks how AI, automation, and geopolitical volatility are accelerating the rise of platform-enabled service delivery models.

Rethinking the services stack

In this podcast Ron Walker, Global Head of KPMG Managed Services, and HFS’ Phil Fersht discuss trade volatility and the transformative impact of AI on services.

Listen now

Explore more

How KPMG can help

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