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SIAM: what is it and what is it for?

Outsourcing is an increasingly sought-after option by service companies. After all, working with other providers can reduce costs and increase productivity. On the other hand, outsourcing is becoming more and more challenging due to the overload it entails in management.

Therefore, it is very important that companies think about practices that help manage the integration of services. And in this sense, there is already, thanks to SIAM!

But what is SIAM?

SIAM, which stands for Search Integration and Management, is a practice/methodology that is based on the integration of service management. It is a little different from other traditional ecosystems, which are constituted through a client and several suppliers. Those who adopt SIAM as a practice have the concept of service integrator.

The service integrator is the one who will provide a unique and impartial point of contact. That is, it means that he is the one who decides how to manage the use, performance, and provision of the service. The integrator also negotiates the relationship between providers and consumers.

There are 3 layers in the SIAM ecosystem:

  • Customer’s Company;
  • Service Integrator;
  • Service Provider or Providers.

The layer in which the integrator is located in this practice is where end-to-end service governance works: in Management, Integration, Assurance, and Coordination. That is, the integrator ensures that providers operate normally. At first, all of this is done through direct relationship with the client organization.

Therefore, due to all this amplitude, SIAM is no longer applied only in IT services, as historically happened. So, other segments take advantage of SIAM, because of the volume of parties involved in providing a service.

SIAM acts as a Service Broker, a term that is closely related to outsourcing. In short, the Service Broker is someone who does not provide any services. However, he provides another company’s services. In addition, he offers support as needed. But be careful, since outsourcing means that someone will have access to data, in addition to the loss of internal knowledge, among other dangers.

When to apply (and not apply) in the company?

From the consumer company’s point of view, SIAM can be beneficial. Quick and controlled access to specialized skills can reduce digital transformation learning and delivery time.

It is possible to think of a list of scenarios where SIAM can be beneficial:

  • Organizations that want to optimize the management of several suppliers to improve a service;
  • Companies that need to enter the market or have short deadlines to provide a service;
  • Companies that have problems with supplier governance;
  • Companies that seek technological advancements and modern solutions;
  • Companies that want to focus on innovation in products and services;
  • Organizations in which there has been a significant growth in the number of suppliers.

On the other hand, there are situations where SIAM is not very suitable:

  • The client company has a small number of service providers and requires a more direct relationship;
  • Companies in which services are at risk of losing value if outsourced;
  • Businesses that offer too many services and products for the number of providers that provide appropriate solutions;
  • Companies with only one supplier;
  • Companies with too many autonomous business units or that make business agreements difficult.

Being aware of these two points will make it more likely to take advantage of the benefits of SIAM, which are:

  • Single integration point;
  • Vendor integration;
  • Reduced launch time;
  • Speed of response to requirements;
  • Lower costs for services;
  • Strategic focus.

SIAM in Service Management

Adopting SIAM as a management practice, as with other practices, requires managing, measuring, and reporting performance. Reflecting on what will be outsourced, the feasibility of contracts, or whether there are providers to meet your needs is essential!

Another important thing to be emphasized is that SIAM can be combined with other management practices. In operational models like VeriSM, it is possible to use SIAM in conjunction with Agile, DevOps, among others.

The fact is that with SIAM, outsourcing is transformed and can enhance a company’s resources.

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