IT Service Providers Research Articles

IT Service Disruptions and Provider Choice

Digital supply chains are increasingly interconnected and vulnerable to disruption, causing service interruptions impacting many firms and their customers. Combating threats to the digital supply chain is the top challenge for leaders in most supply chain industries, demonstrated by the tacit approval of nation-states for cyber-attacks on corporate supply chains to disrupt downstream firms. Disruptions to digital supply chains are not new. In April 2019, hundreds of flights in the United States were delayed when a critical service provider, AeroData, had a computer systems failure. AeroData delivers flight planning services to many airlines including Southwest, United, American, and Delta. All flight operations for AeroData’s over 100 clients simultaneously ceased and thousands of customers were stranded at airports across the country. In an increasingly connected business environment, competitors may be simultaneously disrupted due to a common service provider, impacting all affected firms’ demand. The synchronization of disruptions for firms that use a common service provider has implications for service provider choice and investment. We use a two-stage game to model how a firm’s customer demand is impacted by disruptions at a service provider, and how this subsequently affects the firms’ choices in managing service provider risk. Considering downstream demand effects from upstream service disruptions, the contribution of this paper is the examination of how risk synchronization impacts provider choice decisions and profits. In addition, we illustrate how these choices impact upstream industry concentration.

Improving Productivity and Reducing Costs in an IT Service Provider: Applying the Lean Six Sigma Methodology

Objective: to present the use of the Six Sigma framework as a framework for IT Governance, in a multinational company that operates in the market of IT outsourcing services, with a view to assisting in the improvement of productivity, in its consequent significant reduction of costs and a better operational performance in the processes of the company providing outsourced IT services. Theoretical Framework: The study addresses concepts of the Lean philosophy, as well as the Six Sigma framework and the marriage of Lean and Six Sigma as a way to obtain advantages from the application of its methods, meeting the needs of the organization. Method: In this study, quantitative and qualitative methods were used from a descriptive research. A literature review and associated issues were carried out and a case study was applied from the results obtained through a project in a large multinational company that provides IT outsourcing services. Outcome and Discussion: The combination of Six Sigma with the business process offered the company an opportunity for cost reduction and improved its competitive advantage in an increasingly competitive and quality-driven market. Regarding the implementation of the incident governance process, a reduction of 24% was obtained; Regarding actions to reduce the number of overtime, a reduction of 40% was obtained. A total monthly reduction of US$ 5,589 was obtained and annually the reduction amount plus benefits reached US$ 67,068. Research Implications: Research contributes to the improvement of quality and significant cost reduction with the application of the Six Sigma framework, properly tested and demonstrated in an organization. Originality/Value: This study contributes to the literature by using the Six Sigma framework as a framework for IT Governance in order to help improve productivity with consequent significant cost reduction and better operational performance in the processes of an outsourced IT service provider. The relevance and value of this research are evidenced by the demonstration of the benefits obtained in the environment of the company under analysis.

Strategic management in digital transformation: prioritizing strategic initiatives through Analytic Hierarchy Process (AHP) in Indonesia’s services sector

Purpose: The rapid pace of digital transformation has significantly impacted the IT services sector, particularly in emerging markets, such as Indonesia. This thesis explores the strategic challenges faced by Indonesian IT service providers as they navigate a competitive landscape characterized by evolving customer demands, technological advancements, and market dynamics. This research aims to prioritize strategic initiatives that align with market needs and enhance the competitive positioning of these providers. Research Methodology: By integrating strategic management frameworks such as Porter’s Five Forces, Value Chain Analysis, and SWOT Analysis with the Analytic Hierarchy Process (AHP), this study addresses the issue of stagnant revenue in PT ABC, a leading IT service provider in Indonesia. The findings indicate that AI-based product innovation and the development of low-code solutions are critical strategies for driving sustainable growth and meeting the increasing demand for advanced technological solutions. Limitations: This study underscores the importance of customer-centric approaches and continuous adaptation to maintain a competitive edge in a volatile, uncertain, complex, and ambiguous (VUCA) environment. Contributions: This research contributes to the strategic management literature by demonstrating the practical application of AHP in the context of digital transformation within the IT services sector, and provides actionable insights for IT service providers in emerging markets facing similar challenges.

Project Management Maturity Level and PMBOK 7th Recommendations: Case Study of an IT Service Provider Company

Project Management Maturity Level and PMBOK 7th Recommendations: Case Study of an IT Service Provider Company

Cybersecurity preparedness of small-to-medium businesses: A Western Australia study with broader implications

This study was prompted by the scarcity of focused quantitative research on the cybersecurity of SMBs. Our research aimed to understand the factors influencing SMBs' approach to cybersecurity, their level of threat awareness and the importance placed on cybersecurity. It also explored the extent to which NIST CSF practices are implemented by SMBs while also detecting and ranking the prevalent challenges faced by SMBs. Additionally, resources that SMBs turn to for help and guidance were also evaluated. While the survey-based study was on Western Australian SMBs, the results are of more general and wider interest. Our study found the lack of funds to be the biggest hindrance to cybersecurity, along with a lack of knowledge on where to start implementing good security practices. SMBs also lacked familiarity with relevant regulations and frameworks. The study highlights areas for improvement, such as access control mechanisms, individual user accounts, formalised policies and procedures, and dedicated budgets. SMBs heavily rely on Google search for cybersecurity information, emphasising the need for optimised search results from authoritative sources. IT service providers and informal networks also emerge as important sources of cybersecurity guidance, while local universities could assist SMBs but remain underutilised in this regard. Interestingly, factors such as organisational size, industry sector, and revenue level did not significantly impact SMBs' perception of vulnerability to cyber threats. However, further investigation is needed to evaluate the effectiveness of different IT service models for SMBs' cybersecurity needs. Overall, the research provides valuable insights into the specific gaps and challenges faced by SMBs in the cybersecurity domain, as well as their preferred methods of seeking and consuming cybersecurity assistance. The findings can guide the development of targeted strategies and policies to enhance the cybersecurity posture of SMBs.

Constrained routing in multi-partite graph to solve VNF placement and chaining problem

Network Functions Virtualization (NFV) and Software-Defined Networks (SDN) empower IT professionals and service providers to strategically deploy Virtual Network Functions (VNFs), resulting in enhanced services and security while minimizing costs. Network services are dynamically provided through the deployment of Service Function Chains (SFCs), which involve selecting and interconnecting physical or virtual servers hosting VNFs.In this paper, we address the online VNF placement and chaining (VNF-PC) problem, aiming to optimize the overall cost while satisfying the resource constraints. We begin by proving the NP-completeness of finding feasible solutions for both fixed-size NFV infrastructures and constant-size SFCs. Subsequently, we formulate the VNF-PC problem using Integer Linear Programming (ILP), which is adept at handling and solving small-scale instances of the problem. However, the efficiency of ILP hinges on the quality and quantity of precomputed paths, a factor that escalates rapidly with the expansion of NFV infrastructure size. To tackle scalability, we initially suggest resource homogenization using a novel multi-partite graph, followed by the introduction of the Constrained Shortest Path-based Heuristic in multi-Partite Graph (CSPH-PG) to solve the VNF-PC problem in polynomial time. Our heuristic focuses on promising solution areas by restricting the exploration to the K shortest paths that meet the constraints at each node, with K acting as a fixed parameter of our heuristic.Extensive simulations demonstrate that our heuristic rapidly converges towards optimal solutions, even with small values of the parameter K.

Employee behavior: the psychological gateway for cyberattacks

PurposeCyberattacks have become a major threat to small and medium-sized enterprises. Their prevention efforts often prioritize technical solutions over human factors, despite humans posing the greatest risk. This article highlights the importance of developing tailored behavioral interventions. Through qualitative interviews, we identified three persona types with different psychological biases that increase the risk of cyberattacks. These psychological biases are a basis for creating behavioral interventions to strengthen the human factor and, thus, prevent cyberattacks.Design/methodology/approachWe conducted structured, in-depth interviews with 44 employees, decision makers and IT service providers from small and medium-sized Swiss enterprises to understand insecure cyber behavior.FindingsA thematic analysis revealed that, while knowledge about cyber risks is available, no one assumes responsibility for employees’ and decision makers’ behavior. The interview results suggest three personas for employees and decision makers: experts, deportees and repressors. We have derived corresponding biases from these three persona types that help explain the interviewees’ insecure cyber behavior.Research limitations/implicationsThis study provides evidence that employees differ in their cognitive biases. This implies that tailored interventions are more effective than one-size-fits7-all interventions. It is inherent in the idea of tailored interventions that they depend on multiple factors, such as cultural, organizational or individual factors. However, even if the segments change somewhat, it is still very likely that there are subgroups of employees that differ in terms of their misleading cognitive biases and risk behavior.Practical implicationsThis article discusses behavior directed recommendations for tailored interventions in small and medium-sized enterprises to minimize cyber risks.Originality/valueThe contribution of this study is that it is the first to use personas and cognitive biases to understand insecure cyber behavior, and to explain why small and medium-sized enterprises do not implement behavior-based cybersecurity best practices. The personas and biases provide starting points for future research and interventions in practice.

The role of international consulting in improving the international investment activity of the IT business

In wartime, the IT industry increases the provision of IT services not only in the domestic market, but also in foreign sales markets due to the increase in the export of IT products. However, there is a problem regarding the financing of foreign projects, so the purpose of the paper is to determine modern sources of financing IT business investment activities in order to enter the international sales markets of IT products and the use of international consulting as an effective management system for the development of foreign economic activities of domestic business entities in the field of IT. Such methods of scientific research as: systematization, comparison and systematic approach for finding sources of financing of international activities in the IT industry are applied; induction and deduction for the justification of preferential taxation and crediting, as well as the use of international consulting services for conducting export operations in the field of IT technologies. The modern conditions of taxation, crediting and financing of business entities are considered, which include: preferential taxation, credit programs for importers of IT products, inclusion of the IT industry in the "5-7-9" lending program, direct investment, use of crowdinvesting operations and fundraising. It is proposed to introduce a group of "small businesses and entrepreneurs" for IT enterprises and IT entrepreneurs as residents of Diya City and to create conditions for their preferential taxation. Measures have been developed to implement a special program for crediting the export of IT products through the export credit agency with the help of long-term bonds, as well as a special fund for crediting the IT business at the expense of deductions from all types of taxes and fees of Diya City residents. For the effectiveness of the proposed investment decisions, it is suggested to use the services of international consulting for the support of foreign economic activity.

IT PROJECT MANAGEMENT: OPPORTUNITIES AND SOFTWARE ANALYSIS

The article considers the role of the IT industry in the economy of Ukraine, its revival and development against the background of difficult conditions. The authors emphasize the importance of optimizing management processes. IT service management includes the design, provision, administration and improvement of IT services in an organization or company. Thanks to this, the IT organization can support all business processes as much as possible, because existing software tools can be used not only to optimize IT. In recent years, they have been increasingly used for business processes and other industries. Means of automatic rescheduling of tasks become especially important for large projects taking into account resource limitations, when the manager is not able to independently analyze the reasons for the lack of resources and find a solution for each specific type of work. The publication analyzes modern software tools for IT project management, focusing on three key tools: Jira, Miro and Figma. These programs help streamline project management, increase the efficiency of IT companies and reduce time and resource costs. The article also covers popular alternatives to these tools such as Lucidchart, Cacoo, RealtimeBoard, and Conceptboard. It is the services discussed in the article that are designed to automate current tasks, and a single data environment helps to improve methodology, communication and speed up the work of service departments. Tracking completed tasks and evaluating employee performance makes it easier to distribute the workload of an enterprise's IT team, as well as evaluate its effectiveness. Thus, thanks to its clear structure, IT product management allows to create effective and sustainable solutions. In the future, it is planned to conduct research aimed at summarizing the practice of using software products in the IT industry.

Mapping last mile logistics in Spain

In this work, a depiction and analysis of the state of last mile logistics in Spain is presented. Through the study of the data from 12 Spanish provinces gathered by an IT service provider that enables the operation of 12 different carriers, the main characteristics of each region in Spain are analysed and discussed, portraying not only the geographical and demographic distinctions between the areas, but also the differences in operational efficiency between carriers. Furthermore, the posited metrics are collated with the population density indicators of the provinces, in an attempt to identify significant correlations and patterns that may bring light to the effect on the operation of the agencies of geographic concentration.

Quality of service attributes based hybrid decision-making framework for ranking cloud service providers under Fermatean fuzzy environment

Cloud Computing has gained substantial popularity due to its ability to offer diverse and dependable computing services suited to clients demands. Given the rapid expansion of this technology, an increasing number of IT service providers are competing to deliver cloud services that are both of excellent quality and cost-efficient, in order to best meet the requirements of their clients. With the extensive range of options available, selecting the best Cloud Service Provider (CSP) has become a challenging dilemma for the majority of cloud clients. When evaluating services offered by many CSPs, it is important to consider multiple attributes. Efficiently addressing the selection of the best CSP involves tackling a challenging Multi-Attribute Decision Making (MADM) problem. Several MADM techniques have been proposed in academic literature for evaluating CSPs. However, the persisting problems of inconsistency, uncertainty, and rank reversal remain unresolved. In this paper the authors present a hybrid MADM framework to rank eight CSPs using nine Quality of Service (QoS) attributes. In order to achieve this objective, Fermatean fuzzy sets-full consistency method (FFS-FUCOM) is combined with Grey-Relational-Analysis and the Technique-for-Order-Preference-by-Similarity-to-Ideal-Solution (Grey-TOPSIS) technique. The framework successfully resolved the aforementioned problems. Sensitivity analysis is conducted to assess the stability and robustness of the results produced by the proposed framework. The sensitivity analysis results indicate that the proposed framework offers an accurate and robust solution. A systematic ranking test is undertaken to ensure that the results are ranked in a systematic manner. Additionally, a comparative analysis is carried out with the most relevant study.

Metaverse Virtual Workplace Market Penetration Possibility in Indonesia for IT Services Provider

Digitalization has revolutionized sociability, and enterprises have recognized the virtual universe as a solution for post-pandemic work-from-home. Metaverse virtual workplace, a novel networking technology, provides Indonesia a new economic potential. Indonesia, a booming market with rising financial growth, has experienced a huge change in technology usage, including Metaverse virtual workplace. Many big IT service providers see this as a chance to enter the Metaverse virtual workplace market. The analysis for the strategic decision is constructed using external analysis coming from secondary data along with discussions with SMEs and discussions with customers. The external analysis includes a macro environmental study utilizing PESTEL, Porter’s five forces, and customer analysis. Both SMEs and Customers’ discussions are qualitative assessments including subject matter expert interviews the decision maker from the IT service provider and present clientele. In the business-to-business market, the qualitative technique is utilized to understand sellers and customers. Using external studies, conversations, and sources, the author can determine if the market is viable. The first mover in the metaverse virtual workplace will gain the most benefit. Hence, the market penetrator must go to aim to be one, especially considering the low entry barrier of the market. These led the author to infer that Metaverse virtual workplace is a viable option and highly profitable market that can be entered as a new opportunity for IT Services Providers in Indonesia.

The Impact of Trust, Understanding and Power on Self-managed Teams

Local administrations and companies rely on committed and self-reliant employees to achieve their goals. However, there is limited research on how influencing factors such as trust, understanding, and power affect self-managed teams. This study investigates the modes of interaction of these factors on the team structure within self-managed teams in IT departments and service providers of different German public administrations. The research methodology was a quantitative online survey comprising validated items from standardised test procedures to measure the influence factors. A total of 246 data sets were analysed by regression and mediator analysis. The study found significant positive effects of trust and power on understanding and a mediator effect of power on the relationship between trust and understanding. In conclusion, investments in team member empowerment in low-trust environments can be recommended to improve understanding more significantly than in high-trust situations.

Service Automation Implementation for Delivering CaaS at the Ministry of Finance of Indonesia

Evaluation is an essential aspect of service improvement. Within the Ministry of Finance, there is an organization responsible for providing IT services to various units and employees. One of the services offered by this organization is cloud computing, which supports the development of information systems. However, there are several challenges related to service fulfillment. For instance, the time required to fulfill a service is relatively long, taking two days, in contrast to public cloud providers, which can deliver their services in minutes. Additionally, there is a potential for human errors in the manual process carried out by the Request Fulfillment Team (RFT) during service delivery. This study aims to explore the design and implementation of automated container service fulfillment, transforming them into self-service products. The author employs the Finite-State Automata (FSA) model to test the input and output of the automation system using seven states and inputs. The results indicate that the container service cycle, when compiled and tested with FSA using predetermined inputs, can generate containers according to user-selected specifications. As a result, the implementation of an automated and self-service model is proposed to reduce delivery time and mitigate potential errors in the container-as-a-service (CaaS) offering.

The Role of Business Model Innovation in the IT Services Sector: a Comprehensive Mapping Review

Purpose: The study analyzes the evolution of Business Model Innovation (BMI) in the IT sector, which is mentioned in many available scientific publications. The major output of this paper is concrete customer requirements that invite business model innovations to managed IT services and challenges to establish corresponding business model innovations.
 Design/Method/Approach: The study identified more than 200 journal articles and conference articles with BMI and IT service providers, and it conducted a mapping review of current research to identify relevant academic theories, implementation strategies, and BMI in the managed IT service sector while highlighting gaps in empirical research.
 Findings: Most applied are BMI and the framework of dynamic capabilities in business models of IT services. Early movers, who develop a comprehensive platform strategy, can achieve an invulnerable moat and establish a leading market position.
 Practical Implications: The insights of this study could be applied by large companies, small- and medium-sized companies and start-ups, researchers, etc. They can use the insights to innovate their current business models and improve tailored client solutions. 
 Originality/Value: The study concludes that business model innovations and IT service providers develop areas for future success.
 Research Limitations/Future Research: The design of the study is based on a systematic literature review and limited to the areas of BMI research in the IT service sector. For further research projects, individual articles can be chosen to perform in-depth analysis. Our trend analysis shows the focus on main technologies. However, this can be compared with the technologies mentioned in the Gartner Hype Cycle. Further research could be conducted to overcome limitations and cover the uncertain content of this research.
 Paper Type: Conceptual
 JEL Classification: M21, O14, O33

Digital Zero-Price Market – VAT Consequences

In Italy, criminal proceedings and large VAT assessments have been initiated against IT service providers in relation to the free access to their apps/platforms aimed at collecting users’ data. However, in the view of the authors, there is currently no legal ground to consider this a supply of services relevant for VAT given the lack of a legal relationship pursuant to which there is a reciprocal performance (exchange of a consideration versus an economically valuable supply).

The IT Services Management Architecture Design for Large and Medium-sized Companies based on ITIL 4 and TOGAF Framework

The development of information technology occurs rapidly in almost all areas of life. All companies must immediately carry out a business transformation following the development of information technology to survive amid increasingly fierce competition. One of the keys to this business transformation's success is an enterprise architecture that is used as a reference in planning, developing, operating, and monitoring company information technology. Implementation of service management practices in state-owned enterprises needs to be translated into IT Services Management Architecture Design, that match the IT Governance Principles as mandated in PER-03/MBU/02/2018. This research focuses on preparing an enterprise architecture design in IT service management by referring to ITIL 4 best practices. The resulting solution is a target architecture design in the business domain, data, and applications arranged according to the TOGAF framework. It was carried out in four stages: scope identification, which defines practices; preliminary phase, which resulted in 11 architecture principles; architecture vision that produces a value chain for IT service provider organizations; a business architecture which resulted in a business service/function catalog consisting of 13 business functions and 43 business services; and an information system architecture that produces a conceptual data model on the three main priority processes of IT service management and an application use-case diagram that describes the relationship between the four actors (users, service managers, service desks, and support groups) with their roles in applications. The enterprise architecture has been designed following the scope of IT service management practices commonly used as a reference for all large and medium-sized companies.

The Impact of Persuasive Response Sequence and Consistency When Information Technology Service Providers Address Auditor-Identified Issues in System and Organization Control 2 Reports

ABSTRACTWe examine how an IT service provider’s persuasive communication related to SOC2 report findings influences management’s (i.e., user-entities’) perceptions of the outsourced services. Within SOC2 reports, service providers can attempt to influence management’s impressions of auditor-identified issues and, due to the report’s limited audience, also follow up with management about these issues. Using dual-process theories of persuasion, we predict the type of persuasion used by a service provider in a SOC2 report (contend or concede), and its consistency with follow-up persuasive appeals (contend or concede), will influence management’s perceptions of the services provided. In an experiment, only when the service provider first contends the auditor’s findings does a follow-up concession (rather than contention) result in more favorable perceptions. Persuasion tactics also influence management’s processing of risk factors, which impact their trust in the service. Thus, IT service providers’ initial and follow-up persuasive communications influence management’s assessment of SOC2 auditor-identified issues.Data Availability: Data used in this study are available upon request.

Облікове забезпечення процесу надання ІТ-послуг на підприємстві

The aim of the article is the scientific substantiation of theoretical provisions and the development of practical recommendations for the optimal accounting support of the process of providing IT services at the enterprise. The article analyzes the views of scholars on the relevance of the process of providing IT services at the enterprise in the context of digitalization of business processes, the vectors of their scientific research in accounting for the IT industry are presented. The types of IT services that can be provided by IT entrepreneurship entities are listed. The characteristic features of IT service as an object of accounting are generalized. It is emphasized that the specific features of IT services require high-quality documentation and accounting support. The article underlines variety of IT services, which is reflected in the relevant methodological aspects and the procedure for displaying information in accounting accounts. The documentary support of the process of providing IT services on the terms of trust between the subject of IT entrepreneurship and customers of IT services is generalized. Emphasis is placed on the possibilities of cooperation between an IT company under civil law contracts with individuals and under gig contracts with residents of Diia.City. Options for organizing the accounting support of the process of providing IT services are provided. The peculiarities of reflection in the accounting accounts of the provision of various types of IT services, including the IT product as a comprehensive set of services and IT outsourcing, are outlined. The need to fix the transfer of ownership of an intangible asset in the case of providing a comprehensive set of IT services and creating an IT product is emphasized. It is summarized that the organization of accounting support for the process of providing IT services can be ensured in different ways, taking into view the needs of the IT entrepreneur and the possibility of optimizing the tax burden. As a direction for further research, the need to develop ways to optimize the tax burden of IT entrepreneurship entities is outlined.

How shifting to cloud services changes employees' skills at small and medium-sized IT service providers: Perspectives from IT managers in Germany and Austria

How shifting to cloud services changes employees' skills at small and medium-sized IT service providers: Perspectives from IT managers in Germany and Austria