Study results revealing that Nordic organisations lack a coordinated overview of their IT services ecosystem. A lot of value could be gained by deploying a more mature model in service integration and management (SIAM). A study by IDC and Tieto. Read the whole study: http://pages.tieto.com/SIAM-Maturity.html

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Maturity of Service
integration and management
(SIAM) in the Nordics, 2016
Research conducted by IDC on behalf of Tieto
August 2016

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Key findings
 SIAM is quite new for most organisations in the Nordics. This is not just a challenge; it is a huge
opportunity at the same time.
 SIAM is about aligning LoB and IT, and creates an opportunity for Nordic organisations to raise their
business value even higher when implementing a SIAM office function.
 Larger organisations as well as the IT & Telecom and Banking, Finance and Insurance sector have
come the furthest in their SIAM efforts and maturity while the difference by country is small.
 VSM “thrivers” are the organisations who have the highest SIAM maturity. They are focusing on
business outcome while lowering total cost rather than cutting cost.
 Most Nordic organisations believe that a strong partner for the implementation and management of
SIAM can help them make the leap into the future a much faster, better and customer focused ride.
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Source: IDC research on behalf of Tieto: Maturity of SIAM in the Nordics, 2016

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Research Summary
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 IDC conducted a survey that covered general
vendor and sourcing management questions and
more specific SIAM (Service Integration And
Management) questions.
 The main purpose is to outline the maturity of
vendor and sourcing management and SIAM
capabilities with any differences between industries
and countries among the participating organisations
in the survey.
 The 300 respondents are based in Finland, Norway
and Sweden (100 in each country), from all
industries, and work at an organisation with 100 or
more employees.
Source: IDC research on behalf of Tieto: Maturity of SIAM in the Nordics, 2016

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Service Integration & Management is tricky business.
Only 15% of Nordic organisations having implemented
SIAM consider running it themselves
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Do you use or consider using external resources for providing SIAM or other service integration capabilities?
Use of External Resources For Providing SIAM or Other
Service Integration Capabilities
Use external
resources
today, 37%
Use internal resources only, but
consider using external
providers, 48%
Use external
resources today,
but consider
insourcing
completely, 15%
Source: IDC research on behalf of Tieto: Maturity of SIAM in the Nordics, 2016

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Cost, quality and freeing up resources are by far the main
advantages, while supporting business is surprisingly low.
What do you see as the main advantages of SIAM or other service integration models?
Perceived Advantages of SIAM and Other Service Integration Models
0% 5% 10% 15% 20% 25% 30% 35% 40%
Reduce cost
Improve performance or quality of service
Free up internal resources
Ensure compliance
Make better use of skills and competencies
Ensure consistent service levels
Improve transparency
Assign responsibility
Reduce business risk
Improve governance
Improve agility and reduce time to market
Support changing business models
None of these
5
Source: IDC research on behalf of Tieto: Maturity of SIAM in the Nordics, 2016

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Almost one third (32%) of the respondents have a formalised SIAM
(or similar) model in place. Many of respondents don’t know if they
are using such a model, as awareness is low
Do you use or have you considered using a formalized SIAM model?
7% 8%
17%
13%
10%
45%
We already using
SIAM
We use other types
of service
integration models,
but consider using
SIAM
We use other types
of service
integration models,
and do not consider
SIAM
We do not use
formalized service
integration models,
but consider
implementing it
We do not use
formalized service
integration models,
and do not expect to
implement it
Don’t know
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Source: IDC research on behalf of Tieto: Maturity of SIAM in the Nordics, 2016

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37% of the large companies have 10+ suppliers and would
strongly benefit having a clear SIAM implementation
How many suppliers do you have an agreement with today to operate your IT environment?
45%
53% 61%
22%
17%
17%6%
7%
8%
22% 18%
11%
0%
20%
40%
60%
80%
100%
Finland Norway Sweden
59%
45%
21%
15%
6%
8%
9%
29%
-999 1000+
0 1-5 6-10 11-15 15+
66%
54% 46%
13%
22%
19%
9%
4%
8%
10%
18% 20%
Manufacturing,
Trade & Logistics
Public Sector Other
Agreement to Operate IT Environment Across Countries, Company Sizes and Industries
7
Source: IDC research on behalf of Tieto: Maturity of SIAM in the Nordics, 2016

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25% believe they will have more suppliers in the future
How do you expect the number of suppliers to change in the coming years?
Expected Change in the Number of Suppliers
5%
20%
40%
14%
21%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
We will have significantly more suppliers
We will have a few more suppliers
We will have the same number of suppliers
We will have fewer suppliers
Don’t know
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Source: IDC research on behalf of Tieto: Maturity of SIAM in the Nordics, 2016

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Overall Nordic SIAM Maturity 2016 based on
Tieto SIAM Maturity scale
7%
18%
31%
28%
15%
4%
0 1 2 3 4 5
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Managed
(pre-emptive)
Processes are refined to the
level of best practice.
Measurement is used to
monitor KPI’s. Tools are used
to support workflow &
automation.
Sustained
The processes, training
and protocols have been
followed at Level 4
continuously for more
than 12 months
Defined (pro-active)
Processes have been
standardized, documented
and communicated but
unsophisticated. Team
members are trained
consistently
Repeatable (active)
Different people doing the
same task follow similar
procedures; limited training;
high reliance on the
individual.
Initial (re-active)
There are no standardized
processes; individual or
case by case approach.
Non-existing
Complete lack of any
recognizable process
Source: IDC research on behalf of Tieto: Maturity of SIAM in the Nordics, 2016

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IDC recommendations
 The importance of integrating IT services into business
services by implementing SIAM has never been as
substantial as it is now, when the digitalization of
everything is becoming the only way forward.
 Organisations that have weak overall vendor and
sourcing management must establish an organisation to
manage and guide their sourcing activities across the
organisation and ensure committment on group top
management level.
 Using a strong partner for the implementation and
management of SIAM can help the organisation to
make the leap into the future a much faster, better and
customer focused ride.

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For more information:
Download our Whitepaper:
http://pages.tieto.com/SIAM-Maturity.html
Visit:
www.tieto.com/services/outsourcing/servi
ce-integration-and-management
Contact
Erik Johannisson
Head of Marketing, Technology Services and
Modernization at Tieto
+46 73 08 25 813
erik.johannisson@tieto.com

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