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No processes in place to manage IT service levels for majority of UK organisations

*New research shows stumbling block is lack of communication with IT departments

London 1st December 2005 – New independent research from Service Management company, Tertio SMS, reveals that more than half (52%) of organisations in the UK lack a well-defined IT service management process. The research shows that a major stumbling block is a clear disconnect between IT departments and other business units in defining service delivery requirements. Findings reveal that only one in four IT departments (25%) have a ‘great deal/total input’ from business units within their organisation in defining service level management agreements.

The research, ‘Putting IT at the Heart of Service Management’, also shows that 18% of organisations are spending considerable amounts of time on IT failures, with one in ten departments having to take valuable resources away from strategic IT development to deal with these problems.

Despite an increasing dependency on IT-based service delivery, most recently via the web and mobile technology, many IT departments remain isolated from the rest of the business in the service management process. Only one in five IT departments communicate service levels to business units, so even where other units have input, there is rarely any feedback or evaluation of service delivery. Worryingly, one in ten companies have no process to communicate service levels internally at all. Lack of communication over service management is leading to organisations underestimating the impact of failures on IT service delivery.

Alan Greenberg, CEO of Tertio SMS, comments: “The research just goes to show that companies simply aren’t aware of the state of their service delivery. With no plan, no process and no communication, how can IT service delivery possibly improve?”

“We know from previous research that there is a lot of frustration amongst consumers with poor service levels, especially when network and system failures occur. What end-users are saying and what organisations are seeing doesn't add up. 51% of senior IT management believe there is very little churn as a direct result of system or network failures. Yet 5% percent of consumers, that's one in 20 people, say they would be ‘certain to change’ service providers and a further nine percent say they would be ‘very likely to change’. That's a total of about one in seven people saying they would change their supplier directly as a result of computer or system failures.

“Increasingly, people are being driven to the competition because of poor service management. The fact that the majority of organisations are still not doing anything about this is extraordinary. The research shows that nearly a quarter (23%) of companies have no plan to implement an IT service management process but if they want to keep their existing customer base happy – and retain new ones – they are going to have to start taking action to address this.”

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Methodology
The research findings are based on 126 respondents, of which two-thirds are IT managers and the remaining one-third are IT directors or heads of IT. The survey was conducted online, using self-completion questionnaires during October and November 2005.

About Tertio SMS
Tertio Service Management Solutions (SMS) has been providing solutions to blue chip companies for over a decade, empowering organisations to deliver customer service excellence. It provides a comprehensive range of innovative Business Service Management, Service Management, and Network and Systems Management solutions, combining industry leading software applications with its specialist consultancy and support.

Tertio SMS de-merged from Tertio in 2002 and is headquartered in London. A financially strong company with a proven track record, and eight consecutive profitable quarters, Tertio SMS has 40 employees, serving customers across Europe including T-Mobile, The Post Office, Sainsbury’s and Dixons.

For further information:
Rebecca Dunstan/ Kate Hamilton at Portfolio Communications
rebecca.dunstan@portfoliocomms.com / kate.hamilton@portfoliocomms.com
020 7240 6959

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