To become more responsive to constituents, governments need the latest IT infrastructure. They need the ability to skillfully organize data, extract insights from it, integrate emerging technologies, and accelerate transformation.
And cloud is a critical enabler. In fact, in a recent survey of 200 US state and federal executivesopens in a new tab, 67 percent said the cloud is the top way to overcome their current tech challenges.
Most agencies are already using cloud solutions, but they’re now pursuing upgrades and additional deployments. That’s because getting long-term value from cloud investments requires ongoing evolution beyond implementation.
It means keeping up with the rapid innovation cycle of software-as-a-service (SaaS) providers, who continually release new functionality. It also means nimbly integrating systems to improve decision-making, security, operational continuity, and collaboration with other agencies.
Optimizing platforms through managed services
However, according to the global KPMG and HFS Research Cloud Adoption Survey 2023opens in a new tab, governments often lack the technical development capacity to adopt new cloud features. And given the pace of change, they also struggle to move quickly.
In response, they are increasingly using managed services for SaaS application management. Already, nearly 70 percent of agencies use these services in at least a few areas of the organization, 24 percent use them at scale across the organization, and 62 percent plan to increase their usage in the next two years1.
Going far beyond maintenance, leading managed services providers continually optimize cloud platforms to capitalize on emerging innovation. In addition to advanced technology, they bring people with technical expertise in government processes, systems integration, and data management. They also offer insights on process improvement, and they can pivot at the speed of the market.
Improving integration
The managed services model—offered on a subscription basis with predictable costs—is especially popular for major SaaS enhancements, such as process customization or data integration. In fact, according to the Cloud Adoption Surveyopens in a new tab, these enhancements are the No. 1 way that agencies use managed services to optimize their platforms.
Cloud platforms require ongoing integration because a change in one system can have a far-reaching impact on others, potentially creating multiple versions of the truth. For example, adding new functionality to a human capital management system could affect the data visualization in payroll and financials.
The most capable managed services providers have the expertise to anticipate cross-functional impacts related to SaaS features, helping to continually evolve government processes. They also have critical domain knowledge in related areas like cybersecurity, compliance, and generative AI.
When governments must deftly adapt to a digital, interconnected world that’s constantly changing, it’s this multidisciplinary expertise that often makes the difference. Leading managed services providers are taking it to government organizations, helping them shape a new future through the cloud.
Balancing cost and value management is a strategic capability for banks, supporting daily operations and the long-term outlook. For many organizations, managed services are becoming a key consideration.
Learn more about KPMG Managed Services.
Our people
David J. Brown
Global Head, Managed Services, KPMG International and Principal, Advisory,
KPMG in the U.S.
