Global Market Outlook on Service Integration and Management

  • SIAM is essentially an approach/model that creates a single IT facing organization to manage multiple governance and delivery of services across internal and external IT solution/service providers
  • While ITIL provides for ITSM best practices, SIAM expands the framework, finding relevancy in a multisource environment
  • SIAM solutions provide an integration layer between the IT function that liaises with the business units and the various IT service providers
  • SIAM is a relatively new term and an evolving solution (as the complexity of software and service landscape within organizations increases). SIAM as a function is also called MSI that primarily involved collaboration and communication between various internal and external IT service providers for the business



Porter’s Five Forces Analysis 

Supplier Power

  • SIAM is still at an early stage, in terms of adoption as a separate function
  • Supplier power is low considering the demand for external tools as much of the SIAM function is being done by in-house IT teams or achieved through co-sourcing with a lead service provider
  • Lead service providers offer a managed service led service

Barriers to New Entrants

  • As there are only limited off-the-shelf software vendors, barriers to entry are not high
  • Despite demand in the industry, the existence of managed service-led MSI services from external lead service providers or in-house IT service providers poses a challenge to software vendors

Intensity of Rivalry

  • There are only few suppliers in the market and ServiceNow with its early entry enjoys a significant share of the market
  • Competition is expected to increase with the emergence of nimbler deployment models through the cloud, driving demand for SIAM

Threat of Substitutes

  • Threat for substitution is low, as emerging vendors who offer niche SaaS-based integrator solutions complement existing ITSM systems
  • Clients are also preferring to opt for external managed service-based MSI offerings, where the service integrator is typically a partner of a software publisher

Buyer Power

  • Buyer power is not high despite there being only few suppliers, as adoption rates are still low
  • The presence of managed service led alternatives are also a challenge for market penetration
  • Buyer power is tending to be high, due to the emergence of SaaS-only service integrator solutions that complement existing ITSM systems

SIAM Software SLAs: To Measure Deployment Success

Customer Satisfaction

  • Measured through customer surveys across each customer group/business unit group within the organization
  • Measured through tracking of year-on-year or quarter-on-quarter improvement of user ratings

Supplier Reviews

  • Number of supplier reviews conducted
  • Number of changes made to contracts – increase in change of contractual clauses can indicate deviation in delivery compliance
  • Number or percentage of operational level obligations that were not fulfilled by suppliers
  • Number or percentage of compliance to delivery SLAs

Budget Overruns and Savings

  • Percentage of IT expenses that overshot agreed budgets
  • Percentage of optimization achieved service-wise measured by the year-on-year reduction of costs and time incurred to fulfill services
  • Capacity utilization of resources measured by number of times external resources were called for or costs incurred in providing training to upskill existing resources

Security Testing

  • Number of periodic security tests conducted by individual suppliers
  • Number of incidents of security breach or threats detected. Robustness of system can also be gauged by the incidence of new threats upon addition of new suppliers and services