Many companies are perpetually transforming to stay competitive in today’s fast-paced business environment. To navigate the complexity, fatigue, and risk that often accompany these efforts, organizations are increasingly turning to managed services.
In fact, according to the latest KPMG and HFS Research Outlook Survey, this operating model accounts for more than half of service delivery across most business functions, and usage is expected to increase on average by 10 percent in the next one to two years.
But what exactly is managed services? This type of outsourcing can often be seen as the Wild West, with a market that includes tech firms, management consultants, staffing agencies, specialty vendors, and legacy offshore players focusing on labor arbitrage for back-office work. Managed services goals, likewise, can range from tactical targets like error rates and response times to strategic outcomes like resilience, trust, and growth.
Don Ryan is Chief Strategy Officer at HFS Research. He joined the firm in August 2020 as Senior Vice President of Research and Consulting. He leads large research-based advisory engagements and continue his long-standing coverage of technology, media & telecom vertical as well as enterprise application platforms and ecosystems.
Joel Martin’s research delves into how companies, service providers, and software vendors architect and deliver code via the cloud. Joel’s research covers the latest trends in developing code on microservices architectures while using containers and Kubernetes to adopt and integrate SaaS solutions into complex business workflows.
For more information about managed services for business transformation, contact Don Ryan, Research Fellow & Senior Advisor, HFS Research.
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