Do we really need IETM (Class IV/ Level 4)? Do we have any alternatives?

YES. OEM definitely needs IETM.
Then I need to justify why “YES” And about alternatives if any.

Now IETM has become a mandatory deliverable when OEM is supplying any Electrical, Mechanical or electronic systems to the Navy/IAF/Army

All manuals i.e. UHB, Technical Manuals soft copies / PDFs anyhow how will be given on DVD and the same will also be given as Hard copies. IETM software /DVD is also supplied along with them.