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If your company doesn’t know an API from a KPI, you may struggle to share data within your organization and beyond.
Defining managed services partnerships more broadly than traditional “managed services” begins to blur the lines between managed services, management consulting, technology solutions, and other types of service provision. That’s no coincidence. By availing themselves of a wide range of complementary and overlapping services, winning companies are themselves blurring the lines between service categories that used to be more strictly defined. Academics observe that business models for managed services are broadening to “involve networks of collaborations, value chain dynamics, and customer co-creation…[often through] digitally enabled service ecosystems” in a synergistic combination.
Consider a retail bank looking to reduce customer churn. This bank might have previously spent considerable time with consultants analyzing and modeling attrition and coming up with new approaches to solve the issue. Today, that same bank might ask its service partners to target at-risk customers through an AI- or machine learning–based SaaS offering that’s more effective, faster, and less costly.
That is to say that services, which used to be provided primarily through labor, are now being “productized” into a combination of both labor and technology—usually at a lower price. This often results in improved quality, since the labor isn’t necessarily replaced by the technology but is now engaged in more value-added activities, while repetitive tasks are automated through an embedded product.
The upshot? Companies using managed services in a mature way free up time for people to work on activities that deliver higher value, increasing their odds of arriving at the outcomes that matter—and improving their ability to sustain them.
Global Advisory Thought Leadership, Managing Director, PwC US
Managed Services Leader, Principal, PwC US