How Outsourcing Must Evolve Radically to Survive the Talent Crunch - a podcast by HFS

The true impact of the Great Resignation is only just beginning to wreak havoc, and managed services providers face their whole business model breaking down if they cannot move beyond cost-reduction as their core value to enterprise customers.

Enterprises are more reliant on accessing third-party talent to keep their businesses functioning in today’s talent-constrained world. Winning business is no longer the problem for today’s service providers—it’s being able to attract, train, develop and retain their talent to deliver a genuine transformational experience for enterprises. While affordability of services will always be critical, the risk of partnering with a service provider that struggles to retain its people and deliver ‘value beyond cost’ has never been so perilous.

This is not a temporary nuisance. The war for people to support your business operations and critical tech delivery could last for years. If you don’t ensure your service provider has their act together, you could find yourself in a desperate predicament.

The webinar had a discussion on these critical points:

• The importance of managed services in supporting the move to a connected enterprise and overall transformation and innovation activities. Looking to cost savings alone as the value proposition for managed services will not move the needle over the next decade.


• The need to have the same people planning and implementing managed services. This consistency is critical to ensuring seamless delivery.


• A look at risk, compliance, and cybersecurity—the key areas in which companies are expanding their managed services deployment—and how delivery of these services in a managed services model can exponentially increase trust.


• The paradox that you can’t just automate your way out of the war on talent. Over the past two years, the pandemic has underscored that a more foundational shift in service delivery and process optimization is needed, and managed services can provide this bridge.

Facing off on the webinar

David J. Brown, Global Head of Managed Services, KPMG US, was joined by Phil Fersht, CEO and Chief Analyst at HFS, to share the findings from significant research conducted around managed services during Q4 2021.

Further episodes of HFS PODCASTS

Further podcasts by HFS

Website of HFS