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Driving ITSM adoption
Madan Mohan of Frost & Sullivan puts forth his
views on the state of on IT Services Management adoption in India.
Madan Mohan, Director, Consulting, ICT Practice, Frost &
Sullivan, highlighted the different aspects of IT Services Management
in India by citing a survey of 179 firms which covered factors such
as annual spend, vertical-wise adoption, drivers and future projections.
He pointed out that there were a lot of business
drivers for ITSM in the Indian economy, and the prominent ones among
them were:
- A lot of platforms have been adopted without looking at
OPEX or CAPEX.
- Companies are moving from Tier 1 to Tier 2 cities.
Madan Mohan |
Looking at ITSM as a framework from the management consultant’s
perspective, Mohan cited globalisation and the concomitant adherence to practices
and regulations (SOX et al), and consolidation, which resulted in 7,000 IT /
ITeS firms shutting down.
Many challenges
Aligning the business practices of acquisitions and partners, managing IT assets—should
they be leased or loaned from one division to the other? If your e-mail system
goes down for more than four hours, someone will howl; these were among some
of the challenges that were pointed out.
From the management perspective, ITSM is purely about managing IT assets and
the complexity of IT systems. Here, techniques such as Balanced Scorecard come
into the picture.
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$15 million has been spent on ITSM
or related products during 2005-06, and this figure is projected to rise
to $35 million by 2011. HP had a 46 percent share of this market segment
during 2005-06 followed by BMC, CA and IBM
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Presenting the research highlights, Mohan said, “$15 million has been
spent on ITSM or related products during 2005-06, and this figure is projected
to rise to $35 million by 2011. HP had a 46 percent share of this market segment
during 2005-06, followed by BMC, CA and IBM.”
The drivers of ITSM include mergers and acquisitions, and the rapid growth of
Indian companies. Adoption is strong in chemicals, pharmaceuticals and manufacturing.
In telecom 80 percent of the assets of the two large players are outsourced.
In banking the factor propelling ITSM adoption are Basel II and the Narasimhan
Committee Report. Inhibiting factors inlcude a lack of ITSM consultants, for
while the country has a large pool of ITSM consultants, the preponderance of
dollar work results in a lack of incentive on their part to work for Indian
companies.
“Another shortcoming is that there aren’t many SMB-focussed products.
Asset management and service desk are two key products that have been adopted
in India from an ITSM perspective,” pointed out Mohan.
ITSM’s benefits include improved quality of service. Here, Mohan gave the
instance of Canara Bank. By adopting ITSM the bank’s decision-making with
regard to the number of printers to buy improved with regard to availability
and uptime and this had a direct impact on its internal users.
| The ITSM market has witnessed a year-on- year growth
of 20 percent in 2005-2006 and is expected to grow at a CAGR of 20 percent
over the next 5 years to reach $31 million.
Demand to be primarily generated by large enterprises
that are waking up to the complexity of best practices in IT management.
Further, demand expected from BFSI, IT/ITeS, Retail, and Health Care segments
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| Parameters |
Aspects |
| Globalisation |
Competitive pressures of a borderless world |
| Growth and consolidation |
Growth with standardised infrastructure and reduction
in management complexity |
| Expanding regulatory requirements |
Adopt and maintain standardised procedures |
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