A survey of 1,224 business leaders suggests organizations will soon be relying on managed service providers (MSPs) more than ever to drive technological innovation in the age of artificial intelligence (AI).
Conducted by International Data Corp (IDC) on behalf of KPMG, the survey finds that while nearly half of respondents (45 percent) say their organization currently relies on MSPs to drive technological innovation. That figure is expected to climb to 65 percent within the next two years.
MSPs play a growing role in the AI era
Just as importantly, the mix of managed services being delivered is forecasted to change significantly. Today, the most commonly consumed managed service is IT infrastructure, cited by 40 percent of respondents. Managed AI services follows closely at 36 percent and cybersecurity at 33 percent.
In two years, however, the expectation is AI managed services will account for well over half (56 percent) of the services provided, followed by cybersecurity (34 percent). Notably, managed infrastructure services do not appear on the list at all. They are likely to be subsumed into managed AI offerings. In fact, 91 percent of respondents say managed services will play an important role in enabling agentic AI, with nearly all—99 percent—viewing managed services as a strategic priority.
Shifting demand across applications and services
Today, cloud-based applications represent the largest segment of managed services consumption, cited by 59 percent of respondents. Enterprise resource planning (ERP) applications follows closely with related on‑premises functions at 54 percent and workflow tools at 50 percent. Both AI assistants or chatbots and robotic process automation (RPA) are at 47 percent.
When it comes to motivations for engaging with an MSP, cost savings lead the list at 34 percent, followed by access to new technology at 27 percent, faster speed to market at 25 percent, and accelerated innovation at 25 percent. From a return on investment perspective, the most cited benefits include cost savings at 54 percent. Operating efficiency follows at 53 percent, and improvements in service quality at 50 percent.
More significantly, two‑thirds of respondents (66 percent) expect managed services to deliver major operational, business, and strategic impact within the next 24 months.
From technical services to business outcomes
Over the past few years, many MSPs have been shifting toward delivering specific business outcomes rather than standalone technical services. This is a transition that AI is likely to accelerate. While it remains unclear whether AI will drive consolidation across the current portfolio of managed services, the survey indicates that business leaders are increasingly looking to MSPs for offerings that align more closely with business objectives.
Regardless of approach, most MSPs will need to revisit their overall strategy as AI becomes more pervasive. Many still provide a relatively narrow range of technical services. As more of those services become automated with AI, the pressure to deliver higher‑value outcomes will intensify. Achieving that goal requires a deeper understanding of customers’ true business objectives.
Unfortunately, too many MSPs still lack the insights and perspective needed to stay relevant. The challenge—and the opportunity—lies in finding the time to get closer to customers before a competitor moves beyond being a trusted advisor to become a true strategic partner.
Photo: patpitchaya / Shutterstock
This post originally appeared on Smarter MSP.