Optimizing Workforce Resources with AI

In this episode of the “Business Excelleration^® Podcast,” Kyle McNabb interviews technology experts from The Hackett Group – Michael Fuller and Vladimir Petreski – as they dive into how generative artificial intelligence (Gen AI) is transforming managed services. AI is enabling managed services providers to deliver customized, real-time solutions – automating routine tasks and changing team structures. As enterprises demand more tailored services, AI integration is key to staying competitive.

Welcome to The Hackett Group’s “Business Excelleration^® Podcast,” where week after week we hear from experts on how to avoid obstacles, manage detours and celebrate milestones on the journey to world-class performance. This episode is hosted by Kyle McNabb, vice president of Research and leader of Technology Advisory at The Hackett Group. He is joined by Michael Fuller, Technology Transformation lead, and Vladimir Petreski, director of Technology Transformation, at The Hackett Group. The conversation focuses on how organizations are leveraging generative artificial intelligence (Gen AI) to redefine operations and services, particularly through managed service providers (MSPs) and information technology outsourcing.

To begin, Michael and Vlad explore how Gen AI accelerates improvements in managed services. Key trends include incremental improvements by enhancing personalization, real-time results, and modular, on-demand services and transformative services, in which MSPs use automation to shift from transactional tasks to innovative, strategic offerings. However, this transformation faces challenges, such as a reduced reliance on large teams with greater emphasis on automation and specialization, difficulty hiring cross-functional and integration experts, and difficulties scaling Gen AI innovations across industries.

Then, the discussion turns toward how MSPs are embedding AI to strengthen client relationships. Clients are more thoughtful about outsourcing resources, balancing nearshore and offshore placements, while MSPs aim to position AI as an embedded, integral service, scaling this across complex legacy systems and diverse industries that present significant hurdles. Four trends in enterprise adoption of managed services and AI are highlighted. First, clients are demanding efficient, flexible teams that adjust to project and seasonal needs. Second, there are rising expectations for performance management with AI-enhanced, service-level agreements. Third is the scarcity of skilled AI and data professionals intensifies competition for talent. Finally, companies are prioritizing ownership of customized solutions and demand standardized improvements through AI. The growing focus on “prompt engineering” as a skill reflects how Gen AI expertise is becoming a recognized discipline.

To harness Gen AI effectively, companies need clear strategies aligning AI investments with business outcomes. This approach ensures capital is allocated to initiatives driving meaningful value. It is equally stressed that MSPs must balance transformative AI capabilities with maintaining operational stability, availability and performance. Gen AI is a revolutionary tool but cannot compromise essential services. Stability remains critical for client trust, even as organizations explore innovative AI-driven solutions.

Time stamps:

• 0:12 – Welcome to this episode hosted by Kyle McNabb.
• 3:10 – Gen AI transforming managed services.
• 6:57 – Shifting dynamics in managed services.
• 8:32 – Evolving enterprise expectations.
• 13:44 – Balancing innovation and operational stability.
• 15:49 – Conclusion and final thoughts.