Navigating tech evolution and pressures

Evolving threats and regulations. Ethical use of AI. Return on digital investments.

These pressures are not only ever-present but also closely related. Around the world, business leaders increasingly view cybersecurity, transformation, and tech innovation as a single, interconnected issue that requires ongoing attention.

Many are grappling with questions related to:

• Extracting value. According to KPMG research, most companies are involved in three or more transformation initiatives, but fewer than one in five return significant value. From cloud platforms to automation to analytics, leaders have rushed to create a tech portfolio, but how well is it delivering meaningful, sustained results?
• Shifting from conceptual to practical. While 2024 was the year of generative AI, 2025 may be the year of experimenting with agentic AI. But companies can’t stay at proof-of-concept forever. How can they realize benefits at scale? How can they integrate AI into the operating model with workers who know how to use it?
• Managing threats. With every new technology, there’s a new potential attack surface, continually expanding the digital landscape that companies must monitor and respond to in real-time. This can also mean new regulations; cybersecurity and information protection are among the top 10 regulatory challenges of 2025.
• Inspiring trust. Another top regulatory challenge—and a growth challenge—is trust in AI and other systems. Threats include cybersecurity, data privacy, data integrity, AI-generated deepfakes, bias, third-party risk in the cloud, and the list goes on. How can companies earn the trust of regulators, customers, investors, and other stakeholders, who give them permission to innovate boldly?

For answers, progressive leaders are engaging managed services.

In this model of strategic collaboration and sustained transformation, companies can redesign processes, keep up with innovation, and prepare the business for whatever comes next.

Using providers’ advanced technology and multidisciplinary talent, businesses can move beyond pilots and unlock new value by embedding trusted AI into operations. Providers also bring sophisticated capabilities in cybersecurity, cloud platform optimization, regulatory compliance, workforce learning, and third-party risk management — all packaged in multi-year, as-a-service subscriptions with predictable costs.

After all, technology is not static. It’s an ever-evolving opportunity — and risk — which is why business leaders seek ongoing assistance. In fact, according to the latest KPMG and HFS Research Managed Services Outlook Survey, more than 70 percent of organizations plan to receive transformational impact from managed services in the next two years.

Will you be one of them?

Learn more about KPMG Managed Services.