Service Integration and Management Market Intelligence

Industry Outlook & Drivers

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

Service Integration And Management  Market Overview

• The global service integration and management market was valued at $3.37 billion in 2018 and is expected to reach $4.73 billion by 2021, at a CAGR of 8.8 per cent
• Based on the current investments, Europe is expected to become the biggest adopter of service integration and management, closely followed by North America
• The presence of prominent managed services led-SIAM vendors in the Asia Pacific is expected to give a boost to service integration and management adoption rates in this region.
• The emergence of applications on the cloud (SaaS) provides for greater flexibility of deployment and faster go-live
• Applications, though procured from multiple vendors, have flexible APIs to integrate with legacy systems
• A consequence of cloud applications is the increase in smaller value procurement
• The need for nimbler applications that help achieve quick ROIs has even led to direct procurement by business units themselves as opposed to running through the IT function
• The regulatory landscape is constantly changing with increasing mandates for data disclosure and reporting
• Keeping pace with data disclosure requirements, like GDPR and maintaining internal governance requirements, can be challenging
• Key component of SIAM offering and is broadly called as Service Desk
• Concerned with the implementation and ongoing management of services to ensure alignment with intended business outcomes
• Various services and respective service provider SLAs are tied together
• Provides a dashboard of cross-supplier performance by collating service metrics and asset information from supplier service catalogs

Why You Should Buy This Report

• Information on the service integration and management market size, overview, market outlook, technology and industry trends, etc.
• Porter’s five forces analysis of the global service integration and management industry
• Supply analysis, functional capabilities study, and key profiles and SWOT analysis of major players like ServiceNow, Cherwell Software, etc.
• SLAs, best practices, commercial models, etc.