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Managed Services: The Next Leap Forward for Consulting

Hiring for managed services is the practice of outsourcing non-critical business functions so that a business can focus on its core competencies, and it is especially prominent in IT. In a post for Source Global Research, Fiona Czerniawska explains how managed services are ripe fruit for the picking by consultancies.

A Future of Shared Service

The business model of managed services picked up steam in the ‘90s, and Czerniawska sees even more value in it now. It is not just logistics and call centers that can be outsourced these days. Managed services can also apply to data analytics in the supply chain, as an example. Consultancies can take advantage of managed services by an approach that combines low-cost and high-value consulting, where the low-cost work is automated (and targets efficiency and accuracy) and the high-value work is augmented by AI (and targets effectiveness).

Since businesses are often concerned more with price of services than promises of quality, consultancies must price competitively to be successful. Czerniawska adds this:

Digital technology, robotic process automation, artificial intelligence and cognitive computing all offer consulting firms a second chance. By automating the low-cost part of what they do and balancing it with high-value work, they can reduce the overall cost to a client, while maintaining high margins where expensive human experts are involved. They can dial up the high-cost element in the early days of a project, when the need for innovation, flexible thinking, and collaboration will be key, but can dial it down once that period of intense creativity has passed, leaving clients with on-going support at a reasonable price.

For a more thorough explanation that delineates technology vendor managed services from traditional consulting managed services, you can view the full post here: http://www.sourceglobalresearch.com/blog/2017/11/21/managed-services-the-next-leap-forward-for-the-consulting-industry

About John Friscia

John Friscia is the Editor of Computer Aid's Accelerating IT Success. He began working for Computer Aid, Inc. in 2013 and continues to provide graphic design support for AITS. He graduated summa cum laude from Shippensburg University with a B.A. in English.

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