Ablation is a process which removes material by vaporization. In order to vaporize a thin film you typically need quite a bit of power delivered to the substrate. In your case, peak powers of pulsed lasers are several (often many, many) orders of magnitude greater than that of a CW laser. I suppose it could be done with a CW laser, but at the risk of damaging the surrounding material from large amounts of heat transfer.
Thank you very much for your valuable answer. I understand that it's better to use higher power for shorter amounts of time to limit the heat transfer within the ITO layer.