Paul Clark, Global Vice Chair of Managed Services at EY, emphasises the need for organisations to adopt managed services and outsource non-core functions like tax, finance, risk, and compliance.
What are Managed Services?
Customer expectations are skyrocketing, and the technology landscape is evolving exponentially. In this environment, clients should prioritise investments, balance immediate needs with long-term goals, and ensure great outcomes. Within this context, organisations must decide where to focus their investments. They must differentiate in areas that matter most to their businesses while outsourcing essential but non-core functions like compliance and tax.
These areas require C-suite enablement but do not necessarily warrant direct investment in research or technology innovation. Managed Services offer clients a new way to solve long-standing problems. It’s not just about cost savings or efficiency, but about unlocking value, improving effectiveness, and breaking down silos. A major benefit is providing insights clients might not have had previously.
What kind of clients do you work with? Across what sectors?
Financial services are often a significant component of our portfolio, but we work with great clients in every industry. Geographically, the patterns are consistent. Our domain expertise and ability to contextualise solutions are increasingly critical everywhere. The themes we observe—whether in finance, risk, or compliance—are global.
Is there a timeline of how this awareness has evolved among organisations?
Initially, there was growing awareness of what was possible—something beyond traditional outsourcing. Tax was one of the first areas to see this because it requires great insight and local understanding. Pre-COVID, some of these trends were emerging, but COVID accelerated everything. Clients realised they needed expertise quickly and couldn’t justify the investment to build it in-house. Boards expected rapid reactions, and in-house teams couldn’t always keep pace.
Post-COVID, the focus shifted to broader adoption. Initially, it was about solving immediate challenges in tax and risk. But then organisations began exploring other areas like finance, HR, and compliance. Now, we’re entering a phase where AI is driving even more interest.
Can you share some use cases for global managed services?
We worked with a pharmaceutical client on the West Coast of the US. They were pre-FDA approval and pre-IPO, focusing on getting their drug pipeline approved and setting up distribution. They needed a core head office structure to support their rapid growth and credibility during the IPO process. Our managed services team implemented a ‘head office in a box’ solution, built on SAP and integrated it with other data-driven technologies. This enabled the client to focus on their core business while having the operational backbone to scale effectively. Much of the delivery—both in terms of people and process—was driven out of India. This required functional expertise like tax, finance, and payroll and an understanding of the pharmaceutical industry.
Companies of what size typically benefit from these services?
We work across the spectrum—from Fortune 500 companies to mid-sized enterprises and start-ups. Large enterprises require expertise in specific domains, like technical accounting or tax issues. They often rely on our global capabilities.
For mid-sized companies, we provide access to high-end talent and domain expertise they may not be able to attract. Start-ups and carve-outs—especially during divestitures—also trust us for our operational expertise. For example, fledgling companies backed by strong parent organisations rely on us to ensure smooth operations as they scale.
Does providing global access allow companies to segue into other markets or talent pools?
Even the largest companies in the world often struggle to achieve the scale or access to talent in certain jurisdictions. For instance, we tailor our solutions to meet the needs of different markets. While we deliver high-end solutions for global organisations at the top level, we also focus on providing value-driven services for clients in emerging and mid-market regions. Companies cannot always find the right talent locally or ensure consistent application of technologies across regions. We bring scale, talent, and tailored technology solutions. This requires domain expertise and an interconnected ecosystem. Even within big companies, there’s a need for segmentation and specialized support, which is where we step in.