How to select a service provider for managed SaaS

Like many progressive companies, you may be considering a managed services model to continually optimize your software-as-a-service (SaaS) platform after launch. How will you choose a provider?

Some companies seek the lowest-cost subscription, focusing on factors like IT tickets and break-fix support. But this mindset is transactional, not transformational.

The best providers take over the ongoing management and enhancement of SaaS platforms, providing strategic collaboration for the transformation journey. They help business functions advance their priorities—by absorbing software updates, capitalizing on innovation, and nimbly pivoting to meet changing needs.

An outcomes orientation

So when you’re choosing managed services providers, focus on transformational outcomes, not transactional delivery. Revisit the goals in your SaaS business case, and evaluate providers based on their ability to achieve them. Common target outcomes include:

• Accelerated innovation
• Enhanced security and compliance
• Data integration and visualization for better decision-making
• Lower IT costs and greater agility
• Stakeholder trust
• Customer retention
• Higher employee effectiveness
• Improved collaboration
• Increased automation and efficiencies

The right expertise

Delivering sustained outcomes such as these requires not only advanced technology but also deep domain expertise. In fact, according to the KPMG and HFS Research Managed Services Outlook 2023-2024, companies’ top three reasons for choosing a managed services provider are process expertise, industry expertise, and advisory capabilities in areas such as data and analytics, risk, and regulatory compliance.

That’s because the most successful transformations are tech-enabled and strategy-led, with knowledgeable people and technology working together in harmony.

So as you consider service providers, look for firms with the right combination of expertise and tech to match your intended outcomes. That’s how you can drive sustained advantage in the cloud—and make your SaaS vision a reality.

Learn more about key considerations in SaaS optimization.
For an archive of my past blogs, please visit Going Beyond: Managed Services.