Managed services

Managed services involve outsourcing specific IT or business functions to a third-party provider, known as a managed services provider (MSP). The provider takes on day-to-day responsibility for these functions under a defined service level agreement (SLA). Common examples include IT infrastructure management, application support, cybersecurity, cloud operations, and business process outsourcing for areas such as finance and accounting, procurement, and HR. Unlike traditional outsourcing, managed services typically focus on proactive monitoring and continuous improvement rather than reactive support.

Managed services allow organizations to focus on core business priorities while gaining access to specialized skills, scalable resources, and proven practices. Because performance is tied to agreed metrics, companies can expect more consistent service, better cost predictability, and ongoing improvement over time. For many businesses, this model is a practical way to improve operational efficiency, manage growing complexity, and support digital transformation without adding internal headcount. It also gives leaders greater flexibility to adjust capacity as business needs change.

The Hackett Group® helps organizations decide what to outsource, how to structure agreements, and how to measure results. Drawing on its benchmarking data and performance improvement experience, Hackett evaluates service quality and cost against industry standards and helps clients select and manage providers with confidence. Its advisory teams also support vendor management, transition planning, and ongoing governance. This helps managed services deliver lasting value rather than short-term savings alone.