It’s time to rethink everything you know about managed services
The role of IT has shifted from a back-office support function to a strategic driver of business value as organizations become increasingly reliant on rapidly evolving technology to deliver products and new or existing services. As organizations grapple with the complexities of technology transformation, cybersecurity threats, and the need for agility, many are turning to managed IT services. However, digital leaders are not just looking for vendors to outsource tasks; they seek transformational partnerships to propel their businesses forward. But what does a successful managed services strategic partnership look like, and how can organizations ensure they get the most value from these relationships?
The growing importance of managed IT services
The digital economy demands that businesses innovate faster, operate more efficiently, and deliver seamless customer experiences. These pressures have elevated the importance of IT as well as back office operations and, consequently, the appeal of managed services. As we laid out in An executive's guide to managed services, organizations are increasingly partnering with managed service providers (MSPs) to broaden their IT capabilities, improve customer experience through enhanced IT performance, mitigate technological and security risks, and access cutting-edge technology and talent - globally.
However, the key to success in these strategic partnerships lies not just in the services delivered but in aligning the partnership with the strategic drivers that prompted the outsourcing decision in the first place. Whether scaling rapidly, entering new markets, or freeing up resources to focus on other value add areas, a successful MSP relationship should be tailored to support these goals.
Moving beyond cost-cutting: The strategic role of managed services
Traditionally, cost reduction has been a primary motivator for outsourcing IT functions. While efficiency remains essential, today's most successful managed services partnerships are those that enable growth and innovation. They do this by leveraging best practices, competitive advantage solutions and tools for superior service delivery and rapidly deploying data-driven insights that can transform customer experiences and business operations.
The key to success here is defining strategic objectives for the partnership upfront. Your managed services partner should not merely pursue vague "IT improvements" but rather collaborate with you to envision a future state that drives business value and competitiveness. Together, you should develop specific, measurable goals aligned with providing your organization with a sustainable competitive advantage. For instance, reducing time-to-market for new digital products by X% or achieving a certain level of customer satisfaction with IT-enabled services. By setting clear targets, the organization and the MSP have a shared vision of success.
Laying the groundwork for partnership success
A successful managed services partnership requires intentional effort in developing a shared vision and roadmap, establishing robust Service Level Agreements (SLAs), Operational Level Agreements (OLAs), Experience Level Agreements (XLAs), creating a joint governance structure aligned with expected business outcomes, and investing in change management and training.
Proactive and ongoing relationship management is the linchpin here. Regular strategic function team meetings, open lines of communication, and a willingness to collaboratively focus on solutions when tackling challenges as they arise can make the difference between a merely satisfactory vendor relationship and a truly transformative alliance.
Moreover, the most successful managed services partnerships go beyond help desks and infrastructure support. They become catalysts for developing cutting-edge digital leaders in business and industry. This means leveraging the MSP relationship for broader IT transformation, creating a vision for continuous improvement, and developing internal capabilities alongside managed services.
The key shift here is in mindset: viewing the MSP not just as a vendor but as a strategic partner, becoming an extension of your organization. This perspective opens up possibilities for co-innovation, knowledge transfer, and collaborative problem-solving that can elevate the entire IT function.
Navigating challenges in managed services strategic partnerships
Of course, no partnership is without its hurdles. Common challenges in managed services relationships include addressing security and compliance concerns, managing scope creep and evolving needs, establishing a shared understanding of the organization’s mission and goals and ensuring knowledge transfer to reduce unhealthy dependency on the provider.
The key to navigating these issues is ensuring open, honest communication and collaborative problem-solving. When both parties approach challenges with transparency and a commitment to mutual benefit, solutions often emerge that strengthen the partnership.
Measuring partnership success: KPIs and continuous improvement
We've heard the famous saying, "What gets measured gets managed." This certainly holds true for managed services partnerships. Defining and tracking relevant metrics, conducting regular service reviews and feedback loops, and benchmarking against industry standards are all critical practices. However, measurement isn't just about holding the MSP accountable—it's about driving continuous improvement. The most successful partnerships are those where both parties celebrate wins and learn from setbacks together, constantly adapting the partnership model as needs evolve.
From transactional outsourcing to transformational partnerships
As we look to the future of IT, it's clear that the old model of transactional outsourcing is giving way to something more powerful: transformational partnerships. In these partnerships, managed service providers don't just take over routine tasks; they become integral to their client's digital journeys, driving innovation, agility, and competitive advantage.
The key strategies for ensuring such a successful managed services partnership are not complex, but they do require commitment and a joint understanding of desired goals:
- Align the partnership with strategic business drivers
- Set clear, measurable objectives
- Establish strong governance and communication channels
- View the MSP as a strategic ally, not just a vendor
- Embrace collaborative problem-solving
- Drive continuous improvement through shared metrics and learning
Organizations that approach managed services with these principles in mind will find that they're not just outsourcing IT functions—they're insourcing innovation, scalability, and transformative capabilities. In an era where technology is the lifeblood of business, that's a partnership worth investing in.
Want to learn more about CGI’s success in executing managed services partnerships? Watch our webinar with Circle K on CIO.com or contact us.
About this author
Joanna Robinson
Senior Vice-President, U.S. West
Joanna Robinson serves as Senior Vice-President of operations for CGI's U. S. West business unit. As a seasoned executive and business leader, Joanna has experience leading large-scale operations with responsibility for strategy, service delivery, sales and business development, marketing, client relationships and satisfaction, retention, revenue ...
