Economic uncertainty and the ongoing effects of the pandemic continue to hinder the pace of large-scale digital transformation in 2023. But even as concerns of a recession grow, enterprises are still planning to spend money on the digital technologies they need most.
How exactly has this environment affected the evolution of technology from a service perspective? In this article, we’ll take a look at how technology is evolving from an IT service perspective, along with best practices for service delivery frameworks.
How IT Services Are Changing in 2023 and Beyond
According to Garter, spending on IT services will continue to grow at a rate of 7.9% in 2023. The climate is heavily influenced by IT staffing shortages, accelerated digital initiatives, and the growing demand for SaaS.
Here are five of the top IT service trends this year.
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Subscription-as-a-Service (SaaS)
SaaS grew more than 300% between 2012 and 2018—a rate five times faster than the revenues of S&P 500 companies, including many traditional software brands. And though the growth took a hit during the COVID-19 pandemic, SaaS is still outpacing the popularity of traditional, on-premise technology. In fact, Gartner predicts public cloud end-user spending will reach $600 billion in 2023.
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Multi-Vendor Approach
A growing number of businesses are adopting a multiple-vendor strategy as they implement large-scale digital transformations. This is a new approach that reduces the risk of over-reliance on a single vendor. It also creates competition that produces better outcomes for the client, and minimizes the negative impact of a vendor with limited capacity and resources.
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Increased Security
Global cyberattacks increased by 38% from 2021 to 2022, thanks to a growing number of savvy cybercriminal groups and the rapid digitalization of many organizations during the pandemic. In response, companies are realizing the urgent need for increased cybersecurity at all levels of an organization.
Multi-layer security (also known as “defense-in-depth”) protects businesses by guarding against polymorphic malware, email attacks, and a variety of other data breaches. It also provides DNS-level security that defends against threats at the network level.
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Interoperability
Disparate networks are becoming a thing of the past as they are replaced with APIs that allow organizations to access and consume data and services from countless independent sources. By allowing systems to communicate, APIs help improve efficiencies, drive revenue, and gain access to a wide variety of functionalities without having to create custom applications.
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OpEx Approach
In light of the looming recession, budget cuts, and geopolitical conflicts, many companies are shifting budgets to avoid capital expenditures (CapEx) in favor of operating expenses (OpEx). Whereas CapEx often requires a large upfront payment that benefits a company over the long term, OpEx requires less capital and provides immediate ROI.
This pattern is in line with the current trend away from on-premise technologies to SaaS-based models. After all, on-premise technologies can require a much larger initial investment, whereas SaaS and cloud technologies may require less upfront capital.
Best Practices for Service Delivery Framework
Many of today’s businesses are adopting a multi-vendor service approach to technology, making service delivery frameworks more important than ever.
Developing and maintaining an efficient and streamlined service delivery framework helps companies improve processes and stay on top of the latest advancements in technology.
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ISO-9001 and ISO-27001
The best service delivery framework should include certifications and standards, including ISO-9001 and ISO-27001. These information security standards give organizations the framework and guidelines for securely managing information systems in today’s unpredictable world.
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Agile Delivery Methodology
Agile delivery is an approach to software delivery that requires teams to build software in small deliverables at the beginning of a project, rather than delivering it all at once after everything is complete. This allows teams to be fast and efficient while focusing on collaboration, customer satisfaction, prioritization, and iterative development.
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Information Technology Infrastructure Library (ITIL 4) Framework
In an effort to be more agile and efficient, today’s businesses are delivering IT services based on the best practices of ITIL 4. This much-needed update is a complete overhaul of the ITIL framework, emphasizing principles such as value, risk, and cost. ITIL 4 expands beyond basic IT processes and includes all elements of IT service delivery, which is shifting the way organizations manage IT services.
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The Future of IT Services
Even as enterprises cut IT budgets and lay off workers, digital transformation continues, albeit at a slower pace. Organizations that prioritize cybersecurity, a multi-vendor approach, APIs, and a service delivery framework will be well-positioned for long-term growth. Likewise, companies that adopt a hybrid approach to IT services will have a strong tech roadmap that allows for agility in an uncertain economy.
If you’re ready to transform your IT services approach, Spinnaker Support can help. Contact us today to take control of your enterprise software strategy.