Zoltán Szabó and Péter Fehér of Corvinus University of Budapest conducted a survey of Hungarian IT service management companies in early 2009. The survey found that (1) the average IT budget was 6.44% of company revenues, with financial sector companies spending 5-20%, (2) 24% of IT budgets went to outsourcing, and (3) over 60% of companies had implemented or planned to implement IT service management processes based on ITIL v3 such as incident management and change management. The researchers planned additional detailed surveys and case studies to further analyze IT service management practices in Hungary.

1. Current Challenges of IT
Service Management in
Hungary
2009
Zoltán Szabó & Péter Fehér
Corvinus University of Budapest
& ITSMf Hungary

2. Research Goals
• ITSM – theory vs. practice?
• Investigated issues:
– the role of IT in competitiveness and innovation;
– the actual activities in IT strategy planning;
– the characteristics of IT infrastructure and
applications;
– the actual and planned state of IT service
management;
– the IT budget and the role of IT in the financial
planning.

3. The Sample
Hungarian IT service
management applier companies
in the first half of 2009

4. Organizational Size

5. Responding Representatives

6. IT Budget

7. IT Budget – in General
• IT is business-critical
• IT costs usually varies between the average 3-5%
of the revenue (international)
– Industry/sector-dependent
– IT spending can exceeds 10% of the revenues -
conservative companies spend only 0,5-1%
• Results
– 6,44% of the revenue
– Lowest level: 0,1% (public sector)
– Highest: 5-20% (financial sector)

8. Share of operational costs

9. Operational Cost vs. Development
Outsourcing: 24%

10. What portion of the IT budget is
determined by the IT function?

11. Is IT budget going up or down in real terms
comparing to last year?

12. IT Strategy

13. Is there a documented IT strategy?
for 2,9 years

14. Major Issues in IT Strategy
NEW

15. The Role of IT
information technology as a
factor of the organisational
performance and
competitiveness

16. Our IT function is
the main initiator of innovation

17. IT has a significant role in
implementing business innovations

18. Business understands the role of IT

19. There is and efficient partnership
between IT and business

20. Basic IT services are provided on the
required quality level

21. IT is more important
than the IT function
3,6 3,6
3 2,85 2,8
IT has a significant IT provides the basic Business areas Theres is an efficient IT is the originator of
role in accomplishing IT services in an understand the role partnership between innovations
innovations adequate level of IT business and IT

22. IT Infrastructure

23. IT Infrastructure (lower segment)
Human resource management systems
Cost management applications
Manufacturing support systems
Marketin support systems
E-business applications
Information Management oriented applications
Logistic support systems
Executive Information Systems
ERP system 39% (42,7% in 2006)
Quality management applications
Systems supporting technical development
Systems supporting organizational development
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

24. IT Infrastructure (upper segment)
Financial management applications
Accounting information systems
Groupwork applications
Workflow applications 61,1% (30% in 2006)
Payroll systems
Inventory management systems
Sales management applications
Controlling applications
Business Intelligence
55,5% (10% in 2006)
Procurement management applications
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

25. IT Service Management
Based on ITIL v3

26. Service Desk
Incident Management
Request Fulfillment Management
Transition Planning and Support
Change Management
Access Management
Asset and Configuration Management
Information Security Management
Availability Management
Demand Management
Service Measurement
Service Validation and Testing
Service Continuity Management
Already accomplished
Financial Management
Implementation in progress
Service Strategy
Planned
Service Reporting
Not expected
Problem Management
Release and Deployment Management
7- Step Improvement Process
Supplier Management
Capacity Management
Service Level Management
Common Service Operations
Service Catalogue Management
Service Portfolio Management
Evaluation
Knowledge Management
Event Management
0% 20% 40% 60% 80% 100%

27. Impact of economic
downturn
In the afternoon session…

28. Research Phases and Plans
1. Phase 2a. Phase 2b. Phase
Quick survey Detailed survey Case studies
Short survey for the ITSMF Online questionaire Focus on the matured ITSM
conference participants practitioners
Respondents from IT and
Major issues can be non IT domain Analysis of best practices,
explored experiences, success and
failures
Focusing on general issues
Solid base for the fine- but more detailed analysis
tuning Exploration of complex
relationship between ITSM
and business

29. Further information:
Corvinus University of Budapest– Department of Information Systems
http://informatika.uni-corvinus.hu
Zoltán Szabó
(szabo@informatika.uni-corvinus.hu)
Péter Fehér
(pfeher@informatika.uni-corvinus.hu)
Corvinus University of Budapest
& ITSMf Hungary