The majority of global CEOs are confident in their companies’ growth potential in the next three years, and most cite generative AI as a top investment priority.
At the same time, however, fewer than 40 percent think their employees have the right skills to fully leverage the benefits of the technology, while 65 percent say talent challenges in general will have a negative impact on growth projections1.
In this environment, where demand for emerging tech skills exceeds supply, managed services can be an effective way to access them. Leading providers are investing heavily in GenAI skills — in addition to those in cloud, data management, analytics, and cybersecurity—to help companies keep up with fast-changing talent requirements.
In fact, according to the 2024-2025 KPMG and HFS Research Managed Services Outlook Survey, access to global talent is second only to advanced technology as the top essential criteria for selecting managed services providers.
Meanwhile, 85 percent of respondents said AI capabilities are a defining ingredient of modern managed services.
Overall, companies see embedded domain expertise as a critical component of managed services, helping to alleviate talent challenges. In addition, since processes can change significantly from one sector to the next, 87 percent of respondents said this expertise must be industry-specific, spanning areas from data & analytics to penetration testing to financial crime compliance.
Due to rapid technological advancement, the workplace is ever-evolving, and many companies are trying to upskill and reskill to stay current. Managed services can be another part of the playbook, helping to enable the growth agenda.
With this flexible operating model, organizations can tap skilled talent to capitalize on emerging trends and technologies, complement in-house capabilities, plan for surges in workflow, and continually adapt to market change.
Footnotes
1 KPMG 2024 CEO Outlook
Global Head, Managed Services, KPMG International and Principal, Advisory
KPMG in the U.S.
