Russian ITSM Systems Market

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2024: Focus on Automation and Cybersecurity

In 2024, the Russian ITSM market continues to demonstrate adaptability and stability. Companies are actively looking for ways to replace foreign ITSM systems with domestic counterparts, which stimulates the localization of products and the creation of their own solutions for managing IT services. According to experts, this process, although it creates certain challenges, at the same time opens up opportunities for business.

One of the growth drivers is state digitalization initiatives, which contain the national project "Digital Economy," including the urgent need for import substitution of products of those vendors who left the Russian market. In addition, demand continues to increase for solutions that manage IT services. All this positively affects the development of not only ITSM systems, but also the IT market as a whole.

The demand for complex solutions is growing. Customers are increasingly looking not just for separate tools, but for integrated platforms that combine the functionality of Service Desk, project management, task control and document coordination. This desire for unification and centralization of processes reflects the general tendency to increase the efficiency of interaction between different departments of organizations.

Another important growth factor is the increase in demand for digitalization of business processes. Companies in various industries are looking to improve the efficiency of their operations through the implementation of modern IT tools, automate routine operations and processes to increase efficiency and relieve IT staff. At the same time, there is an increased interest in solutions with a large number of pre-configured business processes and ready-made functionality, which allows you to speed up implementation and get a quick result.

The key demand of the market is to increase the efficiency, transparency and speed of IT services both within and with the business customer. The external environment is changing dynamically, which requires all departments to adapt, while continuing to provide high-quality service at high speed. This principle covers the entire set of trends in the IT management market - omnichannel service, the use of AI, deep integration with infrastructure and management systems, increasing the level of information security and total experience, or a high level of satisfaction of internal and external consumers of services, - says Nikita Kardashian, head of integrated digitalization of Naumen processes.

Realizing that the decision to replace the ITSM system is made rarely and for a long time, medium and large companies began to approach it more carefully. If earlier there was a race of import substitution, now we see a thoughtful approach with a detailed analysis of options for serious ITSM systems, which are not enough for medium and large businesses at the moment, - comments Oleg Skrynnik, managing partner of Cleverics.

{{quote 'Companies' IT infrastructure becomes more complicated, its composition changes, the number of various internal and external integrations increases significantly. In addition, requirements for ensuring information security are being strengthened, including from government agencies. Technologically, it has become more difficult to ensure control over the IT infrastructure. Companies need to monitor their IT infrastructure, automate processes, and have trained, skilled personnel involved in setting up and managing their IT infrastructure. Therefore, the main growth drivers are the needs for changing the IT infrastructure and the constant development of competencies among both customers, integrators and vendors, - notes Andrey Rassamakin, General Director of InfraManager LLC. }}

The main drivers of market growth today are digital transformation and the desire for complete automation of IT service management processes. More companies are integrating ITSM with DevOps and cloud technology to improve the speed and flexibility of their operations. There is also a growing emphasis on cybersecurity, leading to the development of ITSM solutions with advanced incident and security threat management functions, says the Vasily Sautin head of the business development directorate. IBS

The number of ITSM solutions in the Russian market continues to grow. This is primarily due to the fact that after the introduction of basic functionality from several processes, it is always possible to expand this list. For example, in addition to the incident management process, companies can add a problem management process. Secondly, Russian IT companies are trying to commercialize internal developments and develop them to the level of market ITSM solutions. As a result, there are more products on the market.

At the same time, the presence of absolutely all ITSM tools may be redundant for the company. The more functional the system, the more difficult it is to configure and maintain, start and control processes - and the more qualifications you need from IT specialists, "said Natalya Builina, ITSM Platform Sphere (Holding T1) stream leader.

We are seeing an active growth of domestic ITSM solutions and increased competition between local vendors. This creates a favorable environment for innovation and improving the quality of the products offered. Government support for the IT industry also plays a significant role in the development of the market. Programs to stimulate the development of domestic technologies are being implemented, which creates a favorable background for companies developing ITSM solutions, - comments Igor Prostokvashin, leading analyst at Comindware.

Today, the market is at the stage of an active transition to domestic software, which greatly helps Russian vendors. At the same time, a pool of players has already formed who will become key market participants. They already existed on the market until 2022, or appeared before the beginning of 2024. And due to the active demand for Russian products right now, it is difficult to imagine the further emergence of a large number of developers of this class of software that can get a significant market share, "says Roman Myskin, Commercial Director of EvaTeam.

The main driver of ITSM market growth today is, of course, import substitution. An important part of this trend was the explosive growth of insourcing. Large corporations with large funds are actively developing their own IT structures that take on the tasks of both the vendor and the software integrator.

If we talk in general about the IT market, about 150 players participate in the creation of industry solutions at the expense of the state, including ITSM solutions. The market is also growing noticeably in the direction of implementations, improvements and support, because it is necessary to make real import substitution. At the same time, most software manufacturers are faced with the task of entering foreign markets, since it is impossible to ensure profitability in Russian. Units will survive, which will either greatly develop services in the direction of implementation-refinement-support, or begin to work with foreign companies, - said Yuri Bloshchinsky, General Director of KSK TECHNOLOGY.

The market situation today can be described as consistently progressive. IT companies are showing steady growth and do not intend to slow down. And if immediately after the departure of foreign vendors, the level of digitalization of the business was with an eye, just to "close the hole" faster, now companies are entering the stage of planned import substitution. The main difficulty in such a process is to create a seamless transition from Western software to domestic software, - comments Andrey Klubnikin, head of the frontend department of the IT company SimbirSoft.

Customers focus on their needs and tasks. Some need to import substitution of solutions that have left the market, while others need to replace outdated and ineffective instruments. Still others, typically smaller companies, are ripe to implement systems to automate IT service management processes. In general, it is extremely important for organizations to reduce the risks of using non-guaranteed solutions in order to achieve reliability and stability in operational matters, - said Artem Khizhny, General Director of RIKITLAB.

However, the market also faces certain problems. One of the most acute is the shortage of qualified IT personnel. According to HeadHunter, the shortage of specialists is about 25% of the market demand. This creates certain difficulties for both vendors and integrators.

Another problem is the complexity of integrating new solutions into existing, often outdated, infrastructure. Many companies need to integrate disparate systems into a single ecosystem and face interoperability and migration challenges, slowing the transition to new platforms.

Limited access to international technologies and innovations due to sanctions also puts pressure on the market, but this stimulates the development of domestic solutions and helps strengthen the position of Russian ITSM vendors.

At the same time, as Artem Khizhny explains, some companies take a wait-and-see attitude: they postpone the transition to Russian solutions until recently, focusing on other aspects of business restructuring in recent years. However, they also understand that it is in their interests to switch to domestic products.

Experts note that the market is primarily focused on customers who need to switch to a domestic solution right now. Accordingly, general efforts are aimed at introducing products, as well as improving functionality to meet customer requirements.

According to Kirill Fedulov, co-founder and development director of Okdesk, one of the key problems is the lack of a massive need to introduce ITSM solutions. Such systems, as, in fact, the service approach itself, are focused on large businesses and require appropriate resources.

There are many small and medium-sized businesses that, not fully aware of these aspects, are trying to "implement ITIL." Such initiatives, as a rule, end with nothing. On the other hand, for the vast majority of SMEs, ITSM solutions are redundant and solutions of a different class are suitable for automating service processes, technical support and even field service - ready-made products that can be launched in virtually a few days, having previously configured the basic aspects of service processes. Such software is an order of magnitude cheaper and is available to any business. If representatives of the mass segment of SMEs realize that the purchase and introduction of corporate "elephants" from among ITSM solutions for millions of rubles, they simply do not need, the market will grow due to mass demand, which will be able to satisfy existing solutions, - says the expert.

Despite the existing challenges, the situation in the ITSM market in Russia remains positive. The growing demand for integrated solutions, state support and the active development of domestic developments create favorable conditions for further growth and innovation in this area. The key to success for vendors is the ability to offer integrated, easily customizable solutions that meet the specific needs of Russian business.

Rate of import substitution of Western systems

The departure of foreign vendors of ITSM systems in 2022 became a problem for Russian business. But over the past time, not all companies have switched from Western systems to domestic ones. The import substitution process in the ITSM sphere is quite active, but uneven. According to the data, Ministry of Digital Development Russia about 60% of government organizations and 45% of commercial companies have already switched to domestic ITSM solutions or are in the process of migration. However, these figures, according to experts, do not reflect the full picture of the market.

According to a survey conducted by the IBS Group of Companies and the RTK IT Plus company, 48% of Russian companies that still use foreign solutions plan to migrate from Western solutions to Russian ones in the coming year. Another 37% are in the next 5 years, and 15% of respondents noted that they will continue to use software from foreign companies, despite the termination of their support by vendors.

According to my feelings, the peak of import substitution is either already passed, or we pass it in 2024. Companies that have suffered from sanctions and have lost access to their usual Western products, for the most part, have already found alternatives in order to "cover" the current gaps in the landscape, but this has not reduced the demand for solutions. Now we are talking about "import conservation," replacing existing solutions, not because they have become expensive or impossible to service, but because the internal and external environment require more flexible, functional and modern products. In 2025 and beyond, this request will not disappear, but will only become more relevant, - said Nikita Kardashian, head of the practice of comprehensive digitalization of Naumen processes.

The import substitution process is uneven: so far not so many large installations have been transferred to new platforms due to the large number of processes automated on them and, accordingly, the high duration of migration projects. Part of the company is at the stage of choosing a solution and preparing for migration. Others are waiting for the first migration cases to be completed to take into account the experience of colleagues and avoid possible errors when planning their own transition. We are actively working to demonstrate to potential customers the successful implementation of our solutions, - comments Sergey Chukanov, CEO of SimpleOne.

At the same time, 35% of companies that have already switched to Russian solutions note an improvement in the quality performance of ITSM systems by 100%. Slightly less than half of respondents do not yet see the difference between the functionality of Russian and foreign solutions, and 21% of respondents still doubt the quality of Russian products.

If we say that the transition to Russian systems slows down, then rather this is the customer's ignorance about the very fact of the existence of full-fledged analogues, or a long process of choosing a solution, assessing and coordinating all migration processes. As well as uncertainty about reliability associated with a lack of experience in using such products. In simple words, everything new causes fears, psychological discomfort. To do this, there are a number of actions that help overcome this barrier. For example, we regularly hold product presentations and demonstrations, together with customers and partners we take part in pilot implementations, approvals, provide customers with complete and sufficient documentation for using products, we conduct training on the resources of our partners, - comments Roman Myskin, EvaTeam Commercial Director.

The issue of import substitution remains one of the priority tasks for Russian companies. The process of replacing foreign solutions with domestic ones is actively underway, but it cannot be called fast. In areas such as incident, service request and change management systems, domestic solutions are already taking competitive positions. Russian ITSM platforms are actively developing and expanding their capabilities, filling the niches left by Western vendors. However, the rate of migration from foreign solutions varies depending on the complexity of the infrastructure. Especially large organizations with integrated IT infrastructures face difficulties in integrating domestic ITSM solutions into outdated systems, which slows down the transition process, "says Vasily Sautin, head of the IBS business development directorate.

Migration from foreign solutions to Russian ones is hindered by such factors as:

Functional limitations - not all domestic solutions have a wide range of functionality that Western systems offer due to technological and time restrictions on development.

Integration Challenges - About 35% of companies face challenges integrating new systems with their existing IT infrastructure, which may require additional effort and resources. Companies also fear that migration could lead to disruptions.

Cultural and organizational barriers - employees of the company may not be ready to change the usual tools, and this requires additional training and adaptation efforts.

Financial burden - Initial investment in the transition to local solutions can be significant, causing some companies to fluctuate in decision-making. The business strategically approaches the selection of products, carefully evaluating the ratio of price and functionality.

In addition, long-running Western systems are perceived as more reliable, so the transition to a new solution may cause doubts.

The main deterrent is the ability of customers to continue to use foreign solutions with well-developed integrations. However, an avalanche-like understanding comes that this is a dead end: to use a product without accompaniment, development, with a smoldering risk of being left without it at any time. The illusion that foreign solutions are more effective than Russian ones is also dispelled. Our systems are tested by practice, grow up and become better by the combination of price-quality factors, "says Artem Khizhny, General Director of RIKITLAB.

The need for specific functionality also affects the pace of migration. For example, some customers need the ability to build complex role rights matrices or integrate with certain instant messengers. Not all out-of-the-box solutions can satisfy such requests.

If the existing ITSM solution still meets the business objectives, finding an analogue is not a priority for many companies. This explains why they continue to use outdated versions of the software, even if they are not completely satisfied with its functionality.

Enterprise-level companies have implemented ITSM systems for a long time, and accordingly they have been finalized and developed for years. Therefore, migration from such developed systems is a rather time-consuming process, which is carefully planned.

Firstly, the ITSM system is not the system with which import substitution begins in companies. Priority is certainly given to business systems, as well as systems of vendors urgently leaving the Russian market. Therefore, replacing ITSM is a task that many companies are just starting. Secondly, the complete migration of the ITSM system to an average and even larger company is a project for 9-18 months. They started a lot with whom, but not still successfully completed, - emphasizes Oleg Skrynnik, managing  partner of Cleverics.

Also, among the factors hindering the transition of business to Russian solutions, we can note the need for a deep examination of the IT teams of companies.

The most difficult thing is to transfer already debugged and working processes to a new tool, to perform correct data migration, to reconfigure external integrations, to retrain personnel. Despite the fact that most professional tools support the ITIL methodology, in large companies the processes have their own specifics, which need to be customized anew, - explains Natalya Builina, leader of the ITSM Platform Sphere (Holding T1) stream.

Today, there are many domestic business applications on the Russian market that are not inferior to foreign ones in terms of functionality and can meet the demand of small and large companies. Some of the products have been developing for a long time and have already received a significant share in the segment, while some are only winning a niche.

According to Evgeny Novikov, Director of the Competence Center for IT Management and Monitoring Systems T1 Integration, in terms of ITSM and ESM systems, Russian vendors can replace practical any foreign solution. According to the company, it remains to import replace about 20-30% of such systems.

Successful cases of introducing domestic solutions demonstrate that Russian developments are able to effectively solve the problems of business and government organizations. The key success factor is the ability of vendors to offer flexible, easily customizable solutions that can be quickly adapted to the specific needs of the customer and which provide opportunities for further independent development of the system, - said Igor Prostokvashin, leading analyst at Comindware.

Experts also note the tendency for companies to independently implement ITSM systems without the participation of a vendor or partner. This can slow the migration process, especially if the organization does not have enough internal resources or experience.

Any ITSM solution implementation project is a complex complex story, because it includes a global organizational restructuring of processes, interactions, etc. In addition, such systems cover the entire scope of the enterprise, ensuring the continuous provision of a variety of, but primarily IT services to internal users. It is for this reason that the scale of migration projects is colossal, and the pace of migration, respectively, is low. This is true for "migrations" from any systems, work and interaction with which the enterprise penetrates through and through, "says Kirill Fedulov, co-founder and development director of Okdesk.

Preliminary estimates of results and volumes of dynamics in 2024

Based on current trends and analysis of the situation, experts expect the growth of the Russian ITSM market to continue in 2024. According to preliminary estimates of some market participants, its volume may increase by 12-15%.

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This will become possible due to the continuing process of import substitution and the growth of confidence in Russian developments.

According to Comindware, investments in automation and digitalization of business processes may increase by 18%. This reflects a general trend towards improving IT efficiency and optimizing IT costs. The company also predicts that the market will become more consolidated. Leading vendors will strengthen their position and will be able to offer customers the most comprehensive and technologically advanced solutions.

In the sector of government organizations, we expect a particularly active growth in the implementation of ITSM solutions. This is due to government digitalization programs and requirements for the transition to domestic software. In the corporate sector, we expect an increase in demand for cloud ITSM solutions and systems with integrated artificial intelligence capabilities. This could lead to an increase in the share of SaaS models in the market. At the same time, market dynamics can be adjusted depending on the general economic situation and geopolitical factors. However, given the strategic importance of the IT sector for the country's economy, the ITSM market will maintain positive growth dynamics even in the event of unfavorable external conditions, - comments Igor Prostokvashin, leading analyst at Comindware.

Market participants expect not only quantitative, but also qualitative growth, an increase in the technological level of the proposed solutions, their adaptation to the specific needs of Russian business and the public sector. The companies are targeting strong revenue growth.

We forecast steady growth of 20-30% per year. It is justified by raising customer awareness about the effectiveness of ITSM systems, entering the market of new products from new vendors, as well as marketing activity of players and attracting new customers from various market segments, - says Roman Myskin, Commercial Director of EvaTeam.

In 2024, the Russian ITSM market showed stability and dynamic development. The trends that have formed this year will determine the future development of the industry and contribute to its further growth. We are confident that next year the market will continue to adapt and find new opportunities for growth and innovation, - said Vasily Sautin, head of the IBS business development directorate.

According to Victor Sitnik, Product owner ELMA365 Service, ELMA, we should expect the scaling of ITSM systems outside IT for the efficient operation of related departments, the use of an ESM approach for managing internal corporate services in a single window format.

We are also waiting for an improvement in the user experience: the introduction of self-service, chatbots and virtual assistants to quickly solve user problems. ITSM tools and processes will adapt to support employees working from home or in distributed teams. The flexibility and adaptability of ITSM systems will develop, allowing you to quickly respond to market changes and adapt to new requirements. As well as an integrated approach to automating business processes within the framework of a single ecosystem of IT solutions, the expert notes.

Market development prospects in the coming years

The development of the ITSM market in the coming years will probably be characterized by several key trends. Experts expect further market expansion due to the emergence of new domestic developers who will strive to occupy certain niches, offering specialized solutions for specific industries or types of business processes. The dynamics of volumes will continue to grow - the annual increase may be about 10%. This is due to the ongoing exchange rate for import substitution and the growing demand for local solutions.

Investments in research and development are expected to increase. This is necessary to maintain competitiveness in a rapidly changing market. Special attention is likely to be paid to improving user experience and personalization of services. Customers are already increasingly interested in solutions that can adapt to individual business needs.

It is estimated that the IT market will grow at a rate of 10-15% until 2030, i.e., strongly ahead of the development of the economy as a whole. Since the IT-Business is highly dependent on the development of the real economy, the growth rate will be associated with it. Of course, the market hopes for stable growth, but the future will show, - predicts Yuri Bloshchinsky, General Director of KSK TECHNOLOGIES.

The qualitative growth of systems will continue, business and growing competition will demand this. We expect market and product segmentation - someone will go to a large corporate market, someone will offer cloud solutions for small groups. Since the departure of foreign services continues, most likely the players of the Russian market will offer new functionality that was not previously expected in ITSM systems, which will significantly enrich them. In addition, the systems will offer solutions not only for managing IT services, but also for production, development, financial management and other divisions, - says Roman Myskin, Commercial Director of EvaTeam.

Today, about 76% of companies in Russia already use ITSM systems, and in general, the ITSM market has huge potential. Therefore, market dynamics will be at the level of 10% and higher. The big players will be looking to strengthen their position, so we can expect an increase in the number of mergers of companies. In addition, new players will appear, and artificial intelligence, machine learning and robotization will increasingly integrate into ITSM systems, - comments Andrey Klubnikin, head of the frontend department of the IT company SimbirSoft.

The market certainly won't stand still. The appearance of new participants occurs every day, however, not all of them withstand the competition and expectations of customers at a long distance. Work in the IT management systems market is a marathon, not a sprint, precocious products rarely come to the court of large customers, - said Nikita Kardashian, head of the practice of comprehensive digitalization of Naumen processes.

But not all market participants expect the emergence of new players. According to Kirill Fedulov, co-founder and development director of Okdesk, the market will continue to oligopolize between 3-4 players. And the emergence of new worthy solutions is extremely unlikely.

Firstly, the development of a mass software product today is hundreds of millions of rubles. Secondly, the development of corporate-level ITSM solutions requires, in addition to expertise in the development of deep methodological expertise. And this story is expensive and "piece." At the same time, its acquisition, development and implementation in the corresponding solution will take years. That is, the threshold for entering the ITSM solutions market today, I would estimate at least one hundred to two hundred million rubles and 3-5 years. It is for this reason that many companies that try to play in this "clearing" end with isolated successes. This is not a good story for the market, because, of course, it is not monopolized, but there is still practically no choice. On the other hand, in some areas there is no choice at all and worthy domestic solutions for today do not exist in principle, the expert believes.

If we consider the niche occupied by ITSM solutions for enterprise-level companies, then we believe that the market will remain stable and no new players will appear. However, it is possible that large technology companies such as Sberbank, VTB, Rostec and others, solving internal ITSM tasks on their own, will want to bring their product, which they are developing for themselves, to the market. But this will not happen in the coming years, say ESMP experts.

When choosing ITSM systems, business will pay more attention to ensuring data security and infrastructure, focus on more flexible and scalable solutions. Vendors, in turn, will rely on automation and cybersecurity to meet growing customer demands. To improve the user experience, developers will offer convenient interfaces, fast support and cloud solutions.

The maturity and readiness of the system for implementation will become the main criteria for the development of the relationship between the business and the vendor. Customization, customization flexibility and elaboration will be important aspects in choosing such systems. Solutions with ready-made in-box capabilities and pre-configured processes will be preferred. Thus, companies will be able to choose the systems that most correspond to their needs and maturity level, - comments Andrey Rassamakin, General Director of InfraManager LLC.

Another important trend will be the creation of integrated platforms that combine various services and products. This meets customer needs for end-to-end solutions covering all aspects of IT service management. This approach can lead to the formation of new partnerships and alliances in the ITSM market, when companies will join forces to create more complete and effective solutions.

ITSM systems are becoming one of the key elements of the IT infrastructure in companies with a developed IT segment. We see a tendency to increase the versatility of ITSM platforms towards full-fledged systems that can automate not only IT processes, but also the work of other departments. Both within the framework of the ESM concept (activities of all departments of both service) and any others. New Service Desk and ITSM solutions are emerging from development companies that specialize in other software classes, such as BPM. In turn, ITSM vendors are also expanding their product portfolio, "says Sergey Chukanov, CEO of SimpleOne.

There will also be growing interest in augmented and virtual reality (AR/VR) technologies in the context of ITSM. Although these technologies are not yet widely used in this area, they have the potential to train staff, visualize complex IT infrastructures and remote technical support.

In terms of technology, we predict significant changes. The use of blockchain and IoT technologies at ITSM is expected to grow by about 30% by 2025. These technologies can significantly improve IT asset management, improve infrastructure monitoring, and provide greater data security. Artificial intelligence and machine learning will continue to play an increasingly significant role in ITSM processes. We expect these technologies to integrate deeper into various aspects of IT service management, from automating routine tasks to improving predictive analytics and streamlining incident management, "said Igor Prostokvashin, lead analyst at Comindware.

The possibility of using artificial intelligence in the operation of ITSM systems still looks promising. However, now such functionality is unreasonably expensive, so it has not yet found mass use. As soon as the issue of reducing the cost of using AI is resolved, as well as the issue of protecting sensitive data, the market will immediately be filled with solutions with deep integration of AI, which will participate in various ITIL practices, - said Victor Sitnik, Product owner ELMA365 Service, ELMA.

Thus, the ITSM market in the coming years will be characterized by further growth and significant technological transformation.

2021-2022: Key players and development prospects

The real volume of the ITSM market in Russia in 2021 amounted to about 6.8 billion rubles. The leaders in revenue were Naumen, Micro Focus and Terrasoft (from March 2022, the team of the Russian office of Terrasoft moved to Lanit). At the same time, the share of Russian players was 30%. Now there are about 20 Russian companies on the ITSM market in Russia (not all companies agreed to take part in the study). They are mainly concentrated in the segment with revenues of up to 200 million rubles. More than 700 million rubles a year in the direction of ITSM is earned only by Naumen.

Read more in a separate article.

See also

• ITSM Customer Priorities
• Technological trends in the development of ITSM systems
• ITIL Information Technology Infrastructure Library
• Why do I need a Service Desk?
• ITSM import substitution. How to make the right choice and migrate quickly?
• TADdetails: how to introduce artificial intelligence into user support
• How do I choose and implement an ITSM system?
• "We have revoked all licenses": how to choose and migrate to domestic ITSM systems