However, when managed services are used by German companies, they are rarely used strategically, but rather predominantly in the short term. According to 93 per cent of respondents, the main advantage is avoiding staff shortages and having greater flexibility in personnel deployment. Around 71 per cent therefore only want to use services like these to implement individual projects, for example in application management. Their main aim is therefore to cushion their own shortage of skilled labour.
How managed services add value as part of corporate strategy
However, managed services today offer companies far more than just traditional outsourcing and the opportunity to close staffing gaps – even if this continues to play a role. Embedded in a long-term corporate strategy and within the framework of a trusting collaboration with a competent partner, even entire processes or divisions can now be placed in the hands of external experts. International companies have long recognised the advantages of a strategic view of managed services. They can completely close their own competence gaps with appropriate offers and are increasingly focussing on activities that differentiate them from the competition. In other words, they are concentrating on their core business while at the same time gaining momentum in continuously modernising their IT landscape. Such companies cite the following reasons for using managed services:
- 1. a faster pace of technology development and digital transformation (62 per cent),
- 2. access to new functions and opportunities (56 per cent),
- 3. more complex cyber security threats (54 per cent) and
- 4. a change in business strategy and business model (38 per cent).
Smart shoring: No compromises when it comes to quality
The promise of cost savings, which is often cited by German companies as the main argument in favour of managed services, plays a subordinate role when it comes to strategy. Above all, companies do not want to compromise on quality when outsourcing IT services. According to the market research, 89 per cent of companies in Western Europe rely on IT sourcing, but predominantly prefer onshoring (35 per cent). Pure offshoring and nearshoring are less popular among respondents (18 per cent). The situation is different when all three variants are combined in the form of “smart shoring.” Around a third (29 per cent) of companies use this approach to combine the highest quality with the best possible cost savings and other benefits, such as round-the-clock service. Managed service providers who can offer smart shoring via their own resources therefore have a clear competitive advantage.