Eighty-seven percent of senior executives believe that information technology (IT) is important to their organization, according to a global survey commissioned by the IT Governance Institute (ITGI). However, more than half do not feel that IT is an important contributor to innovation, underlining an opportunity for IT to increase its value as a strategic partner. Additionally, nearly half of all organizations do not measure the value they are achieving from IT.
The ITGI study revealed that 59 percent do not view IT's contribution to innovation as important or very important, although a significant majority recognize IT as a major contributor in its traditional strongholds: efficiency and effectiveness. Only a third of enterprises rely on their IT department to provide information about potential business opportunities enabled by new technologies, a key benefit of innovation.
Executives reported that the organization's culture and a lack of the right skill base are among the top barriers to achieving value. ITGI also found that executives do not believe that IT managers are communicating new opportunities to the business -- this finding was in contrast to a 2008 study of IT managers, who reported that they provide the business with frequent information. A solution, according to ITGI, is to include the chief information officer (CIO) on the executive team -- 40 percent of respondents do not currently do this or do not have a CIO.
Based on the challenges that executives identified in the survey, ITGI offers the following advice:
--Take ownership of IT governance and assume overall accountability over IT.
--Make the CIO reporting line as direct as possible to the top executive decision body.
--Use external advisors, when necessary, as a source of knowledge and guidance.
--Pay more attention to the potential for innovation IT can offer.
--Start measuring the value that IT brings -- or does not bring -- to the enterprise.
More information on the service and support industry can be found at www.supportindustry.com
Monday, March 16, 2009
Thursday, March 12, 2009
Four Identity & Access Management Predictions for 2009 and Beyond
Gartner, Inc. has revealed its key predictions for identity & access management (IAM) between 2009 and 2011. Analysts have identified forward-looking assumptions around smart-card authentication, identity-aware networks, hosted IAM and out-of-band (OOB) authentication.
By 2011, hosted IAM and IAM as a service will account for 20 per cent of IAM revenue. Solution sets related to intelligence, administration, verification and access are evolving from software-centric platform delivery models to composite services models. These reduce the costs of implementation and use and prepare for a more-mature production-centric approach to delivering IAM as a service. Markets for first-generation hosted and managed IAM services address relatively mature implementations. They enable customers to focus their technical planning and delivery on less-mature feature sets such as access and intelligence.
A growing percentage of the revenue realized by IAM vendors and service providers will be made possible by the next step in the IAM maturity model, toward hosted IAM and IAM as a service. Gartner recommends that existing IAM solutions users evaluate service-based options for extending the solutions, rather than significantly upgrading those solutions. Those that have not deployed a significant IAM solution should include service and appliance options in their review to gauge the progress of IAM maturity and its suitability.
Through 2011, 20 per cent of smart-card authentication projects will be abandoned and 30 per cent scaled back in favor of lower-cost, lower-assurance authentication methods. The use of smart cards with public-key credentials is generally regarded as a high-assurance authentication method. However, provisioning and managing smart cards and the necessary desktop infrastructure are relatively expensive. A risk-based approach may force some organizations to implement two or more authentication methods, which are likely to include smart cards. This will drive the adoption of versatile authentication servers (VASs), which provide a single infrastructure for multiple methods and a single integration point for the local network and heterogeneous downstream applications.
Gartner recommends that organizations with a free choice of authentication methods for local access should take a scenario-based approach to selecting new authentication methods, based on risk, end-user needs and total cost of ownership (TCO).
By 2011, 30 per cent of large corporate networks will become ‘identity aware’ by controlling access to some resources via user-based policies. Most corporate networks are anonymous, because they forward packets based on internet protocol (IP) addresses, rather than users' identities. Adding identity awareness to networks to monitor user behavior and enforce access based on a user's identity is identity-aware networking (IAN), which blocks access to resources that a user is not authorized to access. Some solutions also provide audit trails that satisfy auditors.
Gartner recommends that network managers and others responsible for IAM projects develop strategies for making networks identity aware. They must ensure that all new network infrastructure and network access control equipment purchases have the capability to support this strategy.
By 2010, approximately 15 per cent of global organizations storing or processing sensitive customer data will use OOB authentication for high-risk transactions. The security measures that most financial institutions and other service providers have in place are proving inadequate in the face of new cyber-crime attacks against customer accounts. Man-in-the-browser (MITB) Trojan attacks in particular are rendering most installed stronger user authentication measures ineffective so organizations are turning to OOB user authentication and transaction verification for high-risk customer transactions.
Most global businesses that implement OOB authentication and transaction verification will use customer-owned landline and mobile phones as the ”something you hold” factor. Users must understand and trust OOB calls or SMS messages delivered to their phones and service providers must ensure that they have reliable working phone numbers (and backup numbers) for their customers. Another problem is that Trojan horses and other forms of malware now prevalent on PCs will become common on smartphones in the next few years, which may render OOB authentication methods that use smartphones insecure and ineffective.
More information on the service and support industry can be found at www.Supportindustry.comWednesday, March 11, 2009
Financial crisis to remove $40bn from global retail banking technology market
The global banking technology market will decline by almost 2% in 2009, according to a new report by independent market analyst Datamonitor. The report says this will be concentrated in European and North American markets, led by the UK, where banking technology spend will have the greatest fall, declining -- almost 7%. Datamonitor expects overall technology growth to remain depressed compared to pre-crisis forecasts up to 2012, removing over $40bn of what would have been IT spending from the banking sector, over next five years.
Datamonitor’s report finds that while IT budgets are under pressure, requirements are different to the last IT downturn cycle (after dot com crash), where technology was particularly targeted for cost reduction. Indeed for banks post financial crisis, IT intensity is likely to increase; this is the ratio of IT cost to overall operating cost base. Technology spend will reduce, but the need to obtain synergies from recent mergers and drive lower costs/ higher productivity elsewhere will protect budgets to some degree.
Banks are realizing the crisis is likely to drive a structural shift in the banking sector and future operating income growth and that this will eventually require a corresponding structural shift in the bank structures and organizational size. Immediate cost pressures will constrain in the short-term, but this will need transformation and IT investment.
Many areas of IT spending will therefore remain resilient. IT spend in the branch will be maintained as banks look to technology to maintain service levels after headcount reduction, with banking operations (e.g. account administration/ loans processing) growing in IT investment focus to support greater efficiency and drive lower cost base. Similarly, technology spend to support risk management and compliance will be maintained, however, banks will be looking to re-use existing systems as far as possible, so immediate technology vendor opportunity will be more subdued than many expect.
More information on the IT industry can be found at www.supportindustry.com
Datamonitor’s report finds that while IT budgets are under pressure, requirements are different to the last IT downturn cycle (after dot com crash), where technology was particularly targeted for cost reduction. Indeed for banks post financial crisis, IT intensity is likely to increase; this is the ratio of IT cost to overall operating cost base. Technology spend will reduce, but the need to obtain synergies from recent mergers and drive lower costs/ higher productivity elsewhere will protect budgets to some degree.
Banks are realizing the crisis is likely to drive a structural shift in the banking sector and future operating income growth and that this will eventually require a corresponding structural shift in the bank structures and organizational size. Immediate cost pressures will constrain in the short-term, but this will need transformation and IT investment.
Many areas of IT spending will therefore remain resilient. IT spend in the branch will be maintained as banks look to technology to maintain service levels after headcount reduction, with banking operations (e.g. account administration/ loans processing) growing in IT investment focus to support greater efficiency and drive lower cost base. Similarly, technology spend to support risk management and compliance will be maintained, however, banks will be looking to re-use existing systems as far as possible, so immediate technology vendor opportunity will be more subdued than many expect.
More information on the IT industry can be found at www.supportindustry.com
Monday, March 9, 2009
Communications, High-Tech Companies Give Away One-Quarter of Their Technical Service Support Due to Limited Customer Insight
Providers of communications and high-tech products and services give away, on average, 28 percent of the technical service and support they deliver to business customers each year, because they lack insight into what customers are entitled to receive, Accenture research has found.
The research consisted of two simultaneously administered online global surveys, one for providers and the other for customers. It explored the state of business customer service in the communications services, communications equipment, electronics and high-tech industries, querying more than 650 senior executives from 11 countries.
The research uncovered another sizable problem. Nearly 30 percent of business customers surveyed are considering switching to another provider because they are dissatisfied with the quality of customer service they receive. With their current providers each of these customers spends, on average, $15 million on products and customer service per year. The research also revealed that 70 percent of business customers said that it's possible for a provider to create an experience that "locks in" their future business. At the same time, 70 percent of providers said that improving the overall customer experience and customer satisfaction ranks as their main business priority for 2009.
When asked why they are challenged in delivering superior service, the three reasons providers cited most often were their lack of supporting technology (selected by 30 percent of respondents), a dearth of trained resources (29 percent), and non-existent definitions of support processes (22 percent). According to providers and customers, the quality and competence of service agents, along with their ability to address customer concerns on the first phone call or e-mail, rank as the two most important factors in delivering a superior, differentiated service experience.
Respondents were asked to explain, in their own words, what they consider to be the main characteristics of a superior, differentiated customer experience. Their responses fell into several categories, the top three of which were: knowledgeable staff and accessible support (32 percent); efficient and timely problem resolution (26 percent); and proactive, personalized solutions (21 percent).
Another key finding of the research: providers estimate they will earn nearly one-third of their future customer service and support revenue by 2013 from service and support offerings that do not currently exist.
The research also discovered that, compared with customers in Europe or Asia, those in North America are more loyal to their providers and less likely to have switched providers or considered doing so. Furthermore, the research found that if North American communications and high-tech companies deliver a distinguished and superior customer experience, they have a 20 percent better chance than European and Asian companies of generating more customer service revenues from the same customers.
To build the kind of service and support capabilities that can help them achieve high performance during and after the current economic crisis, Accenture recommends six actions communications and high-tech companies should take. They are:
--Enhance the content on the service and support portal;
--Invest more in training and developing customer service agents;
--Enhance the knowledge of each provider's installed base;
--Improve first-call or email resolution;
--Improve the overall customer experience of self-service, not just reduce costs;
--Implement analytical and diagnostic tools.
More information on the service and support industry can be found at www.supportindustry.com
The research consisted of two simultaneously administered online global surveys, one for providers and the other for customers. It explored the state of business customer service in the communications services, communications equipment, electronics and high-tech industries, querying more than 650 senior executives from 11 countries.
The research uncovered another sizable problem. Nearly 30 percent of business customers surveyed are considering switching to another provider because they are dissatisfied with the quality of customer service they receive. With their current providers each of these customers spends, on average, $15 million on products and customer service per year. The research also revealed that 70 percent of business customers said that it's possible for a provider to create an experience that "locks in" their future business. At the same time, 70 percent of providers said that improving the overall customer experience and customer satisfaction ranks as their main business priority for 2009.
When asked why they are challenged in delivering superior service, the three reasons providers cited most often were their lack of supporting technology (selected by 30 percent of respondents), a dearth of trained resources (29 percent), and non-existent definitions of support processes (22 percent). According to providers and customers, the quality and competence of service agents, along with their ability to address customer concerns on the first phone call or e-mail, rank as the two most important factors in delivering a superior, differentiated service experience.
Respondents were asked to explain, in their own words, what they consider to be the main characteristics of a superior, differentiated customer experience. Their responses fell into several categories, the top three of which were: knowledgeable staff and accessible support (32 percent); efficient and timely problem resolution (26 percent); and proactive, personalized solutions (21 percent).
Another key finding of the research: providers estimate they will earn nearly one-third of their future customer service and support revenue by 2013 from service and support offerings that do not currently exist.
The research also discovered that, compared with customers in Europe or Asia, those in North America are more loyal to their providers and less likely to have switched providers or considered doing so. Furthermore, the research found that if North American communications and high-tech companies deliver a distinguished and superior customer experience, they have a 20 percent better chance than European and Asian companies of generating more customer service revenues from the same customers.
To build the kind of service and support capabilities that can help them achieve high performance during and after the current economic crisis, Accenture recommends six actions communications and high-tech companies should take. They are:
--Enhance the content on the service and support portal;
--Invest more in training and developing customer service agents;
--Enhance the knowledge of each provider's installed base;
--Improve first-call or email resolution;
--Improve the overall customer experience of self-service, not just reduce costs;
--Implement analytical and diagnostic tools.
More information on the service and support industry can be found at www.supportindustry.com
Friday, March 6, 2009
Cloud Computing Is More Than Just Hype; Worldwide IT Spending On Cloud Services Expected To Reach US$42 Billion By 2012
According to IDC, worldwide IT spending on cloud services will grow almost threefold, reaching US$42 billion, by 2012. As the cloud computing model offers a much cheaper way for businesses to acquire and use IT, IDC expects its adoption to be amplified by the cost-cutting mantra of most organizations today.
In a recent IDC survey conducted with 696 IT executives and CIOs across Asia/Pacific excluding Japan (APEJ) to gather their views, understanding, current usage and planned usage of cloud computing, it was found that 11% of the respondents are already using cloud-based solutions. A further 41% of the respondents indicated that they are either evaluating cloud solutions for use in their businesses, or already piloting cloud solutions. When asked about their opinion of the current state of cloud computing, 17% of the respondents stated that although cloud computing is very promising, there are currently not enough services available to make it compelling.
For IT vendors to be successful in the cloud market, they will have to address users’ cost concerns. The survey also revealed that more than 50% of the respondents indicated cost cutting as the key driver behind the adoption of cloud computing. However, it is also important to note that supplying low-cost services alone will not guarantee success, as users are also indicating that any cloud solution they buy must offer competitive pricing, offer Service Level Agreement (SLAs) and offer complete solutions.
More information on the service and support industry can be found at www.supportindustry.comWednesday, March 4, 2009
CIOs Report on Hiring Expectations for Second Quarter: Help Desk/Technical Support and Networking to Experience the Most Growth, Survey Finds
Eight percent of chief information officers (CIOs) anticipate adding information technology (IT) personnel in the second quarter of 2009 and 6 percent plan staff reductions in the next three months, according to the latest Robert Half Technology IT Hiring Index and Skills Report. The net 2 percent hiring increase compares with a net 8 percent increase projected last quarter. The majority of respondents, 83 percent, plan to maintain current staffing levels.
The IT Hiring Index and Skills Report is based on telephone interviews with more than 1,400 CIOs from companies across the United States with 100 or more employees. It was conducted by an independent research firm and developed by Robert Half Technology, a leading provider of IT professionals on a project and full-time basis.
Key Findings
-- Help desk/technical support and networking are the job areas experiencing the most growth.
-- Desktop support is the technical skill set most in demand, overtaking network administration, which led as the top skill for the past two quarters.
-- One in five IT executives who plan to add staff will hire a mix offull-time and contract workers.
-- Reduced IT budgets were cited as the primary factor for reductions in IT personnel.
-- CIOs in the Mountain region are most optimistic about hiring activity.
Twenty-one percent of CIOs who plan to add staff will hire a mix of full-time and project workers, while 8 percent plan to add contract workers. One-quarter of executives cited corporate growth as the primary factor driving hiring demand, followed by IT department expansion at 9 percent. Increased workloads and the need for systems upgrades tied for third, each receiving 8 percent of the response.
CIOs cited reduced IT budgets (40 percent) and the impact of the financial crisis on their company or industry (21 percent) as the reasons for reductions in IT personnel during the second quarter. IT projects being put on hold and companywide layoffs followed, each receiving 18 percent of the response.
Skills in Demand
When asked which technical skill sets were most in demand in their IT departments, 67 percent of CIOs cited desktop support. Network administration (LAN, WAN) and Windows administration followed closely, with 65 percent and 64 percent of the response, respectively. (Note: CIOs were allowed multiple responses.)
Help desk/technical support and networking tied as the job areas experiencing the most growth, each cited by 15 percent of CIOs. Internet/intranet development received 10 percent of the response.
Industries Hiring
CIOs in the business services and professional services sectors are most optimistic about hiring in the upcoming quarter. Ten percent of business services executives interviewed plan to add staff and 3 percent will reduce the size of their IT workforce, for a net 7 percent increase. In the professional services sector, 11 percent of CIOs anticipate hiring more staff and 5 percent expect staff reductions, for a net 6 percent increase.
More information on the service and support industry can be found at www.SupportIndustry.comMonday, March 2, 2009
IDC Forecasts Worldwide IT Spending Growth of 0.5% in 2009
The continued erosion of the global economy, including the prospect of negative GDP growth in many major countries, has led IDC to update its forecast for worldwide IT spending in 2009. The IDC Black Book now forecasts worldwide IT spending will grow by just 0.5% year over year in 2009 in constant currency, down from a November 2008 forecast of 2.6% growth. If recent exchange rate trends continue, this will translate into a significant decline in revenues for U.S.-based IT suppliers.
The greatest impact will be felt in global hardware markets, where overall spending growth will be -- 3.6% this year, led by a steep decline in outlays for servers, PCs, and printers/MFPs. In contrast, worldwide spending on software and IT services are each expected to grow 3.4% in 2009, down from 4.6% and 3.7% growth respectively in the previous forecast. Worldwide IT spending in 2009 will be $1.44 trillion.
In the United States, IDC is now forecasting year-over-year growth of 0.1% in overall IT spending, down from the November forecast of 0.9% growth. Paralleling the worldwide market, hardware will experience a sharp decline in spending with -- 16% growth while software and IT services spending will grow by 4% and 3% respectively. U.S. IT spending will total nearly $491 billion in 2009.
Other highlights from the new IDC Black Book include the following:
--Overall IT spending in Western Europe is now expected to grow 0.1% year over year in 2009, down from the November forecast of 1.2% growth. IDC expects IT spending in Germany and the United Kingdom to remain essentially flat in 2009, while France and Italy will experience negative growth.
--The forecast for IT spending growth in Asia/Pacific (excluding Japan) has also been reduced, with overall growth now expected to be 1.4%, down from the earlier forecast of 4% growth. IT spending in China is expected to grow 6.5%, down from 9.1%, and India's growth has been reduced to 5.7% from 10%.
--Japan will experience year-over-year IT spending growth of 1.8% in 2009, down from the previous forecast of 1.0% growth.
--Latin America will enjoy gains in all three market segments, driving overall IT spending to 4% growth in 2009, down from the November forecast of 8%. IT spending in Brazil will grow by 6% in 2009, down somewhat from the 9% forecast in November.
--In Central and Eastern Europe, IT spending will grow -- 7.5% in 2009 as a result of worsening economic assumptions and business climate volatility.
--The Middle East & Africa is expected to continue on a growth trajectory of almost 8% in 2009, down slightly from the November forecast of 8.5% growth.
More information on the IT industry can be found at www.supportindustry.com
The greatest impact will be felt in global hardware markets, where overall spending growth will be -- 3.6% this year, led by a steep decline in outlays for servers, PCs, and printers/MFPs. In contrast, worldwide spending on software and IT services are each expected to grow 3.4% in 2009, down from 4.6% and 3.7% growth respectively in the previous forecast. Worldwide IT spending in 2009 will be $1.44 trillion.
In the United States, IDC is now forecasting year-over-year growth of 0.1% in overall IT spending, down from the November forecast of 0.9% growth. Paralleling the worldwide market, hardware will experience a sharp decline in spending with -- 16% growth while software and IT services spending will grow by 4% and 3% respectively. U.S. IT spending will total nearly $491 billion in 2009.
Other highlights from the new IDC Black Book include the following:
--Overall IT spending in Western Europe is now expected to grow 0.1% year over year in 2009, down from the November forecast of 1.2% growth. IDC expects IT spending in Germany and the United Kingdom to remain essentially flat in 2009, while France and Italy will experience negative growth.
--The forecast for IT spending growth in Asia/Pacific (excluding Japan) has also been reduced, with overall growth now expected to be 1.4%, down from the earlier forecast of 4% growth. IT spending in China is expected to grow 6.5%, down from 9.1%, and India's growth has been reduced to 5.7% from 10%.
--Japan will experience year-over-year IT spending growth of 1.8% in 2009, down from the previous forecast of 1.0% growth.
--Latin America will enjoy gains in all three market segments, driving overall IT spending to 4% growth in 2009, down from the November forecast of 8%. IT spending in Brazil will grow by 6% in 2009, down somewhat from the 9% forecast in November.
--In Central and Eastern Europe, IT spending will grow -- 7.5% in 2009 as a result of worsening economic assumptions and business climate volatility.
--The Middle East & Africa is expected to continue on a growth trajectory of almost 8% in 2009, down slightly from the November forecast of 8.5% growth.
More information on the IT industry can be found at www.supportindustry.com
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