9 May 2025

2 min Reading Time

Managed Services often go far beyond traditional outsourcing. Expectations among large enterprises with revenues exceeding half a billion euros are correspondingly high when it comes to their service providers.

TL;DR

  • 74 % of surveyed large enterprises use Managed Services in IT; 4 % see potential but aren’t using them yet.
  • In HR, 54 % use Managed Services; in compliance and risk management, the figure is 45 %.
  • 36 % of IT decision-makers report that digitalization initiatives haven’t delivered as expected.
  • 77 % expect sustainable process improvements from Managed Service Providers (MSPs).
  • More than half of companies want to fully hand over IT and business processes to MSPs.

The Mindelheim-based consulting firm Lünendonk & Hossenfelder sought to understand how German corporations with revenues beyond the €500 million mark approach Managed Services in its latest market survey.

Of the 101 large enterprises surveyed, 74 IT leaders stated they entrust their IT – either fully or partially – to Managed Service Providers (MSPs). An additional 4 % see potential in these services but haven’t adopted them yet. In HR, adoption stands at 54 %, with another 10 % recognizing untapped potential. Similarly, in compliance and risk management, 45 % currently use Managed Services, while 13 % see room for future adoption.

Marketing shows lower utilization, with only 40 % leveraging Managed Services’ potential, according to findings from the survey conducted between October 2024 and January 2025. Lünendonk ensured proportional representation of Germany’s key sectors: industry, financial services, retail, chemicals, and the public sector.

Digital transformation overwhelms even the largest companies

All 101 respondents recognize that digital transformation of their business processes is unavoidable – and most have already taken steps toward it, though not always with the desired success.

Even large corporations often struggle with digitalization – Managed Services offer a solution. (Image source: Unsplash / Conny Schneider)

Indeed, 36 % of IT decision-makers admitted that their digitalization efforts haven’t yielded the expected returns, reports industry magazine ChannelPartner.

Even these major enterprises frequently lack the skilled personnel needed to drive digital transformation independently and sustainably reshape their internal processes. As Lünendonk notes, this positions Managed Services for a strategic breakthrough – though client expectations now extend well beyond classic outsourcing models.

 

500 Millionen Euro
revenue threshold for companies surveyed on their use of Managed Services. 74 IT leaders out of 101 large enterprises participated.
4 Prozent
see potential in Managed Services but don’t yet use them.
10 Prozent
also relatively high – similarly in compliance and risk management.

Demand for sustainable process improvements

More than three-quarters (77 %) of surveyed organizations demand sustainable, long-term process improvements from their MSPs. Additionally, 69 % believe outsourcing tasks to external providers will help reduce their IT costs.

Fifty-one percent expect IT service providers to fully take over their IT and business processes – not just deliver against standard Service Level Agreements (SLAs) – a priority especially for CIOs and CFOs. B2B clients also want to expand the scope of MSP offerings into more functional areas, with increasing emphasis on end-to-end solutions, innovation, and process digitization.

“The days when Managed Services were used solely for cost reduction and standardization are over,” says Mario Zillmann, Partner at Lünendonk. “Providers are now expected to offer strategic support in digitalization, automation, and compliance implementation.” To meet these demands, MSPs would be wise to deepen their expertise in regulatory frameworks like the Digital Operational Resilience Act (DORA) and the EU’s NIS2 Directive.

Frequently Asked Questions

Which industries were included in the survey?

The survey proportionally represented Germany’s key sectors: industry, financial services, retail, chemicals, and the public sector.

How many companies reported outsourcing their IT fully or partially to MSPs?

Out of 101 surveyed large enterprises, 74 reported outsourcing their IT – fully or partially – to Managed Service Providers.

What do companies expect from Managed Services?

Beyond cost savings, companies demand real value: 77 % seek sustainable process improvements, and 51 % want MSPs to fully assume responsibility for IT and business processes.

Why are large enterprises increasingly turning to Managed Services?

Many large corporations lack the internal talent to successfully execute digital transformation on their own. Managed Services help bridge this gap.

Which regulatory topics should MSPs focus on, according to the study?

MSPs should prioritize understanding DORA and the EU’s NIS2 Directive, as compliance obligations are increasingly passed down to them.

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