Service integration and management (SIAM), or multisourcing service integration, is a strategy organizations utilize to coordinate numerous internal and external service providers. This is achieved through a “service integrator” role, which centralizes and streamlines the services offered by the various service providers, ensuring the delivery of a unified and dependable set of services.
The components of a service integration and management/SIAM framework or model encompass:
- A client organization
- A service integrator
- One or more service providers.
What service integration and management involves
Service integration and management discussions often revolve around its application within familiar IT service management (ITSM) realms, notably in ITSM areas like incident, problem, and change management. However, its influence stretches beyond these and the other standard ITSM practices outlined in service management bodies of best practice guidance, such as ITIL.
Service integration and management encompasses the full spectrum of the service lifecycle. This begins with the initial ideation phase, moves through demand management, project and service portfolio management, and extends into operations, incorporating the ITSM processes popularized by ITIL. Given its comprehensive coverage of the entire service lifecycle, service integration and management capabilities need to be supported by solid frameworks for contract, commercial, and supplier management.
Organizations adopting service integration and management may note a significant shift in the complexity and quantity of contractual agreements and the need for more synergistic engagement with suppliers. This shift may necessitate expanding the skill sets and the number of personnel specializing in contract and commercial roles.
The capabilities typically involved in a service integration and management framework include:
- Audit and control
- Availability management
- Business relationship management
- Capacity management
- Change enablement/management
- Commercial/contract management
- Continual improvement
- Demand management
- Event management
- Financial management
- Incident management
- Information management
- Information security management
- IT asset management
- Knowledge management
- Performance monitoring, measuring, and reporting
- Problem management
- Project management
- Release management
- Risk management
- Service catalog management
- Service configuration management
- Service continuity management
- Service introduction, retirement, and replacement
- Service level management
- Service portfolio management
- Service request management
- Supplier management
- Toolset management.
Hence, service integration and management is not confined to the familiar ITIL ITSM practices and processes.
SIAM models
Service integration and management models are structured approaches that organizations use to manage multiple service providers and ensure the effective delivery of IT services. There are three main service integration and management models, each with its own unique structure and approach to service integration and management:
- Internal service integrator model – the client organization keeps the service integration function in-house, where a dedicated internal team or department is responsible for coordinating and managing the various service providers. This service integration and managementmodel offers direct control over the integration process and is often chosen when there’s a strong in-house capability or a desire to retain strategic control of the integration and management functions.
- External service integrator model – the client organization outsources the service integration function to a third-party specialist. This third-party service integrator is responsible for coordinating and managing all other service providers (and they can also be one of the service providers). The external service integrator brings expertise, best practices, and often economies of scale to the management of services using service integration and management.
- Hybrid service integrator model – the hybrid model blends the internal and external models. Some aspects of the service integration function are retained in-house. In contrast, others are outsourced to a specialist provider. This service integration and management model allows client organizations to maintain control over key strategic functions while benefiting from external service integrators’ expertise and capabilities.
Example service integrator activities
Regardless of the service integration and management model employed, the service integrator will undertake activities such as:
- Service coordination – ensuring that services from various providers are delivered in a coordinated and cohesive manner.
- Performance management – monitoring, analyzing, and managing the performance of the multiple service providers against agreed-upon service level agreements (SLAs).
- Incident and problem management – managing issues across the service provider landscape, ensuring timely resolution and minimizing the impact on the business.
- Change enablement/management – overseeing and coordinating changes across different service providers to ensure minimal service disruption.
- Financial management – ensuring services are delivered within budget and that providers are held accountable for their financial commitments.
- Supplier management – including contract management, negotiation, and regular performance reviews.
- Risk management – monitoring the service and service provider landscape for potential risks and implementing appropriate controls and contingency plans.
- Demand management – this includes managing and influencing the demand for services and ensuring that the various service providers can scale up or down as required.
Why organizations look to service integration and management
The growing adoption of service integration and management models can be attributed to various influences, including:
- A shift away from the large-scale, single-vendor outsourcing agreements prevalent in the early 21st century.
- Transformation in the business demands placed on IT departments, with the need for increased adaptability, agility, and promptness in service operations.
- The evolving role of IT has transitioned from a mere internal service provider to a critical business enabler and strategic partner integral to every facet of business operations.
- IT must align with broader organizational objectives, particularly in driving cost-efficiency across the enterprise.
- Progress in defining service integration and management models and a growing recognition of its value.
How SIAM benefits organizations
Service integration and management offers organizations a wide range of benefits, primarily by enhancing how multiple service providers are managed, ensuring that end-to-end service delivery is seamless, efficient, and aligned with business objectives. Example service integration and management benefits include:
- Enhanced service quality, which leads to improved end-user experiences and service levels
- Cost efficiency by avoiding overlaps in service provision and leveraging economies of scale; service providers within the service integration and management ecosystem competing for specific projects
- Improved governance, risk management, and control – for example, service integration and management allows organizations to distribute operational risk across multiple service providers, reducing dependence on a single supplier and enhancing overall resilience
- Increased agility and flexibility such that organizations can respond more rapidly to market changes and internal demands (and ultimately business needs); this includes flexibility to smoothly integrate or remove service providers as service integration and management contracts evolve
- Better visibility and reporting that provides a comprehensive view of service performance, aiding in informed decision-making and continual improvement
- Effective supplier management that holds all service providers accountable to their contractual agreements
- Strategic alignment, ensuring IT services support and drive the overall business strategy
- Access to expertise sourced from various suppliers
- Greater service provider accountability in the complete service delivery chain
What would you add to my explanation of service integration and management?
Other ITSM.tools service integration and management articles can be found here:
- Service Integration and Management and SLAs
- How to Ensure Your Service Integration and Management Contract Requirements Fit the Bill
- Building an Effective Service Request Process in a Service Integration and Management Model
- 8 Key Factors to Recognize When Implementing a Service Integration and Management Operating Model
- 10 Tips for Using Service Integration and Management to Deliver Better IT Services and Support
- 10 Key Steps for Service Integration and Management Success
- The Benefits of Better Invoice Management with Service Integration and Management
- How To Build an Effective Service Integration and Management Process Model
- Navigating the Road to Service Integration and Management
- Service Integration and Management From the Frontline
Stephen Mann
Principal Analyst and Content Director at the ITSM-focused industry analyst firm ITSM.tools. Also an independent IT and IT service management marketing content creator, and a frequent blogger, writer, and presenter on the challenges and opportunities for IT service management professionals.
Previously held positions in IT research and analysis (at IT industry analyst firms Ovum and Forrester and the UK Post Office), IT service management consultancy, enterprise IT service desk and IT service management, IT asset management, innovation and creativity facilitation, project management, finance consultancy, internal audit, and product marketing for a SaaS IT service management technology vendor.
