ESM that spans IT, business and corporate functions prepares companies for an all-cloud future, ISG Provider Lens report says
Enterprises should converge all IT, business and organizational operations under one enterprise service management (ESM) mesh, because the distinctions among these realms are disappearing, according to a new research report published today by Information Services Group (ISG), a leading global technology research and advisory firm.
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“The core of our reports is the same, including an executive summary, observations, quadrants and leader profiles”
The 2022 ISG Provider Lens™ Enterprise Service Management – Services & Solutions report for the U.S. finds enterprises are adopting long-term strategies to manage all operations using similar processes and eliminate redundant ESM solutions for separate silos. ESM software providers are embracing this trend, assembling broad, pan-enterprise solutions in a “platform of platforms” approach.
“New business models and definitions of work have blurred the lines between IT and business,” said Bill Huber, ISG partner, Digital Platforms and Solutions. “To be sustainable and focused on business goals, companies need a standardized, resilient enterprise service mesh.”
Over time, much of enterprise IT will vanish into the cloud, ISG predicts. Traditional IT departments that currently manage systems, access and assets will continue to shift to a primary role as strategic partners enabling business functions at every level. Other enterprise utilities will also move to the cloud, as functions such as accounts payable and workforce administration become modular, omnipresent capabilities within one comprehensive platform.
Enterprises want managed services to reflect this consolidation of portfolios, resolving multiple issues with one solution, says Jan Erik Aase, partner and global leader, ISG Provider Lens Research.
“The new approach to managed services is converging IT and business operations to include software product and application maintenance and personalization across IT, business and corporate portfolios,” Aase says. “The new focus is on pre-built solutions and support.”
Enterprises need comprehensive ESM consulting services to navigate these changes, he says.
“Enterprises are looking for a consolidated consulting capability across all their enterprise portfolios,” Aase says. “We see a growing demand for a calibrated fusion of strategy, technology, business and industry consulting.”
The report also identifies four other capabilities enterprises are seeking from ESM consulting service providers: industry-leading frameworks, methodologies and reference architectures; services for resiliency and continuity beyond IT, extending to the business and corporate realms; industry and domain consulting; and process modernization. ISG offers additional insights and observations on these demand areas in the other three quadrants of the report.
For more insights into how ESM is being transformed by new technologies and business models, read this ISG blog post, “Demystifying Enterprise Service Management – Beyond IT.”
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The 2022 ISG Provider Lens™ Enterprise Service Management – Services & Solutions report for the U.S. evaluates the capabilities of 42 providers across four quadrants: ESM Consulting Services, ESM Managed Services for Converged IT and Business Operations, ESM Implementation and Integration Services and ESM Software Providers.
The report names Accenture, Capgemini, Cognizant, Infosys, TCS and Wipro as Leaders in three quadrants each and Tech Mahindra as a Leader in two quadrants. It names Atlassian, BMC, Deloitte, DXC Technology, HCL, Ivanti, KPMG, LTI, Micro Focus and ServiceNow as Leaders in one quadrant each.
In addition, LTI, Mindtree, Symphony SummitAI and Tech Mahindra are named as Rising Stars – companies with a “promising portfolio” and “high future potential” by ISG’s definition – in one quadrant each.
ISG Provider Lens is kicking off a new research year with this report and is introducing a new format for its 2022 studies, says Aase.
“The core of our reports is the same, including an executive summary, observations, quadrants and leader profiles,” Aase said. “But we are placing even more emphasis on the day-to-day issues of the enterprise buyer of these services. The trends, challenges, best practices and characteristics of enterprise buyers are better highlighted in our new format, along with more direct quotes and observations from the lead authors.”
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