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Next-Generation Managed Services: Journey from Cost to Value

Organizations in nearly every industry are rethinking “build versus buy” decisions when it comes to operating critical business functions.

Where outsourcing was once simply a cost-saving solution, leaders are now looking to next-generation managed service providers, otherwise known as Operate service providers, to help address some of their biggest challenges in mission critical areas of business.

While many forces are helping drive this shift, new disruptive technologies, scarce sought-after skills, and evolving risk and regulatory pressures are serving as particular catalysts for change and increasing the demand for these services.

In this research from Harvard Business Review Analytic Services, hear from leading executives who are using Operate services to help drive innovation and advantage across their organization, as well as from experienced academics and commentators in the field.

Key highlights

Widespread digitization, talent shortages, and the need for increasingly specialized skill sets, are causing many organizations to reconsider cost savings vs. value when it comes to selecting service providers.

Bringing in outside expertise for core functions is changing the shape of business—from managed services projects that focus on simple task completion and cost reduction into outcome-oriented, innovation-driven engagements that can help organizations operate with greater agility.

Next-generation managed services, also known as Operate services, can help multiple organizations share the cost of hiring specialists in high-risk, hard-to-staff areas such as cybersecurity, tax, and digital transformation.

“I encourage you to use this report, sponsored by Deloitte, as a practical guide as you consider Operate services for your organization.”

– Doug Gish, Deloitte Global Operate Leader

Download the Harvard Business Review Analytic Services “Next-Generation Managed Services: Journey from Cost to Value” to find out more.


Note: the laws of many countries do not allow taxpayers to “outsource” their legal responsibility to third parties, and the regulatory environment for related services requires their providers to remain independent of their clients, and not take the responsibilities of management.  For these reasons “Operate” services may not be Managed Services, but a more delineated service provision that blends the technical specialisms and scale organizations seek with these legal and regulatory requirements.

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