What is ITSM?

What is IT Service Management (ITSM)?

IT Service Management (ITSM) is how IT teams manage the end-to-end delivery of IT services to customers, encompassing all the policies, processes, and tools used to design and deliver IT services. Essentially, ITSM ensures that IT services align with business objectives and emphasize a customer-focused approach.

Unlike other IT management practices that are heavily technology-oriented, ITSM is characterized by a process-based approach that’s closely associated with frameworks such as the Information Technology Infrastructure Library (ITIL) and DevOps.

What is an IT Service?

In ITSM, an IT service refers to the management and support of technology solutions provided to end-users or customers. This includes a variety of workplace technologies like computers, servers, and mission-critical software applications. ITSM teams oversee incident management and service requests, ensuring efficient and reliable service delivery that enhances user satisfaction.

What is an ITSM Framework?

An ITSM framework is a set of best practices and guidelines that standardize the management of IT services. These frameworks offer a structure for continuous improvement, optimizing service delivery and support. They provide essential methodologies and tools for managing IT functions, helping organizations streamline processes and enhance system performance. Frameworks guide businesses in developing their ITSM strategy and ensuring maximum value from their IT operations.

AI in ITSM: Key Trends Shaping the Future in 2025

In 2025, AI is set to drive transformative changes in IT Service Management (ITSM). Organizations are increasingly adopting AI to automate processes, leverage data for smarter decision-making, and enhance overall efficiency. Here are some key trends to watch in AI-powered ITSM:

1. Enhanced Agent Productivity: AI is streamlining routine tasks, such as generating responses, standardizing procedures, and drafting documentation. This allows IT teams to focus on more complex, high-priority issues, ultimately improving resolution times and service quality.

2. Empowered User Self-Service: AI-driven virtual agents are enabling users to access instant, accurate support through conversational interfaces like MS Teams and Slack. This reduces reliance on human agents, cuts down on wait times, and enhances the overall user experience.

3. Automation of ITSM Workflows: The growing use of low-code platforms and intelligent automation is enabling rapid deployment of automated workflows, optimizing IT operations. This trend is central to creating more agile and responsive service operations.

In 2025, AI will continue to shape ITSM, providing organizations with smarter, faster, and more efficient ways to manage their IT services, all while reducing costs and improving the user experience.

Why is ITSM important in your business processes?

By implementing ITSM frameworks, businesses can ensure that their IT services are aligned with broader organizational goals. This cohesion helps in reducing redundancy, minimizing downtime, and automating routine tasks, allowing technical staff to focus on more strategic initiatives. Efficient IT operations support better service delivery, reduce the time to resolve issues, and ultimately enhance overall productivity.

Common benefits experienced when implementing ITSM practices include:

• IT services are more closely aligned with the overall objectives of the organization

• Consistent and reliable technical services that meet predefined standards and service level agreements (SLAs)

• Enhanced efficiency through streamlined processes and improved resource utilization

• Improved incident management facilitates faster identification and resolution of IT issues

• Optimized resource allocation and process efficiencies contribute to lower operational costs

• Structured processes and documentation help ensure regulatory compliance

• Better documentation and knowledge sharing improve problem-solving and decision-making

How does ITSM benefit you across all functions?

ITSM does much more than simply enhance the performance of IT systems and teams; it acts as a crucial link in connecting these services to end-users, both internal and external. Its structured, yet adaptable, ITSM framework provides an abundance of benefits for various stakeholders, ranging from other departments within an organization to individual users.

ITSM benefits for businesses

• Improved service quality ensures consistent and high-quality IT performance that meets organizational needs

• Mitigates IT-related threats, enhancing security and reliability for improved risk management

• Identifies potential issues before they become major problems, promoting proactive problem management

• Provides valuable insights into IT performance and areas for improvement, allowing companies to continually refine strategies over time

ITSM benefits for the IT department

• Automation of routine tasks allows IT staff to focus on strategic projects

• Promotes quicker and more effective resolution of technical issues, thus minimizing service disruptions

• Helps verify adherence to SLAs, ensuring that IT services meet specified standards and performance metrics

• Standardized workflows reduce complexity and improve efficiency in technical operations

ITSM benefits for employees or end-users

• Dependable IT services reduce downtime, ensuring that employees remain productive and customers have access to vital resourced

• Defined processes and SLAs verify that end-users are informed about service expectations and status updates

• Access to self-service portals empower users to resolve common issues on their own, saving time and effort

• Clear processes and responsibilities promote transparency and ensure users know where to turn for support

What are the key ITSM processes and services ?

ITSM is all about managing IT services in a structured way. It’s about setting up systems and processes to make sure IT supports the business effectively. Think of it as a roadmap for delivering IT services.

Many IT teams use frameworks like ITIL to guide their ITSM practices. ITIL breaks down IT service management into a bunch of steps, or processes, to follow.  ITIL 3 defines 26 processes in 5 lifecycle stages. ITIL v4 introduces a more flexible and adaptable approach called the Service Value System (SVS). Here, we won’t worry about the extensive terminologies of the different processes. By establishing repeatable procedures and aligning IT with business goals, your team can ensure efficient and effective IT service delivery. 

Outlined below are some of the core ITSM processes to look out for:

Service request management

Service request management in ITSM is a process focused on handling various user requests in a structured and efficient manner. These requests can range from password resets and access requests to new equipment procurement and software installations. The primary goal here is to provide a streamlined process for managing these requests, ensuring that they’re fulfilled promptly and accurately.

Knowledge management

Knowledge management refers to the systematic approach of capturing, organizing, and sharing information within an organization to enhance IT service delivery. It involves the creation and distribution of knowledge assets such as documentation, FAQs, and troubleshooting guides. Its main goal is to ensure that relevant and accurate information is readily available to IT staff and end-users, facilitating quicker problem resolution and informed decision-making.

IT asset management

IT asset management, or ITAM, requires tracking and maintaining an inventory of hardware, software, and related technology assets to ensure they’re used efficiently and actively support business operations. It encompasses activities such as asset discovery, inventory management, resource tracking, and financial management. By having a comprehensive view of all IT resources, companies can avoid unnecessary expenditures and verify that all assets are up-to-date and functioning as intended.

Incident management

Incident management emphasizes identifying, recording, and resolving incidents as quickly as possible. An incident is classified as any unplanned interruption, such as system outages, hardware failures, or software bugs. Incident management involves detecting disruptions, logging them in a centralized system, prioritizing them based on severity, and assigning them to appropriate technical staff for resolution. 

Problem management

Unlike incident management, which focuses on immediate service restoration, problem management aims to address the underlying issues that cause disruptions. The process necessitates identifying problems through trend analysis, documenting known errors, and conducting root cause analysis (RCA) to determine the source of the problem. Once the root cause is identified, problem management works on developing solutions to eliminate or mitigate the issue.

Change management

Change management is a structured process aimed at managing changes to IT systems and services to ensure successful implementation. It strives to facilitate beneficial changes while avoiding unintended disruptions to technical services. Well-implemented change management requires the identification, assessment, and implementation of adjustments, which can include software updates, hardware upgrades, and other alterations to the IT environment.

Release management

Release management is closely related to change management, as both processes aim to systematically manage alterations in the IT environment. While change management focuses on the control of individual changes, release management deals with the broader coordination of multiple adjustments that are packaged together as a release. By coordinating these activities, release management ensures that all aspects of the release are considered, including resource allocation, risk assessment, and rollback procedures.

Configuration management

Configuration management refers to the process that ensures the systematic identification, recording, and management of all technical assets and their relationships. This process involves creating and maintaining a Configuration Management Database (CMDB), which contains detailed information about configuration items (CIs) such as hardware, software, and network components. Configuration management aims to provide a comprehensive view of the IT environment, facilitating improved decision-making and enhanced problem-solving capabilities.

What are the important ITSM frameworks?

There are various types of frameworks included under the ITSM umbrella that aim to support the alignment of IT services with broader business goals. For instance, ITIL, COBIT, and ISO/IEC 20000 focus on improving service quality, governance, and compliance, while Lean IT and Agile Service Management emphasize efficiency and adaptability. 

ITSM vs ITIL

ITSM and ITIL are distinct concepts that share many similarities; in fact, ITIL falls under the larger ITSM umbrella as one of its key frameworks. That being said, you’ll need to evaluate your unique business requirements to determine which approach is most appropriate for you.

ITSM acts as a broader discipline that encompasses all processes and policies involved in designing, delivering, and managing an organization’s IT services. Its main objective is to align technical services with the needs of the business, ensuring that they support and enhance larger goals. ITSM covers various aspects, including service strategy, design, operation, and much more.

ITIL, on the other hand, is a specific framework within ITSM that provides detailed guidelines for managing IT services. It outlines a systematic approach to ITSM, offering a series of processes that companies can adopt to improve their service management efforts.

Popular ITSM frameworks and standards

• ITIL: A widely adopted framework that provides best practices for ITSM, focusing on aligning technical services with business needs. It covers the entire service lifecycle, from service strategy and design to operation and continual service improvement

• COBIT (Control Objectives for Information and Related Technologies): Serves as an approach for developing, implementing, and monitoring IT governance and management practices

• ISO/IEC 20000: An international standard for IT service management that specifies requirements for establishing, incorporating, and continually improving ITSM systems

• Lean IT: An extension of Lean principles to the technical environment, focusing on maximizing value and minimizing waste in IT processes

• Agile service management: Integrates Agile principles into ITSM practices, emphasizing flexibility, collaboration, and iterative improvements

• DevOps: Acts as a set of best practices that combine software development (Dev) and IT operations (Ops), aiming to shorten the system development lifecycle and provide continuous delivery with high software quality

• eTOM (Enhanced Telecom Operations Map): A comprehensive business process framework specifically designed for the telecommunications industry. It covers all aspects of telecom operations, including strategy, infrastructure, product development, and customer management. 

• MOF (Microsoft Operations Framework): A collection of best practices developed by Microsoft to help organizations manage their IT operations more effectively. MOF provides a structured approach to managing the lifecycle of IT services, including planning, delivering, and optimizing these services. 

What are the key considerations when choosing ITSM software and tools?

When determining which ITSM technology best suits your specific business needs, you’ll need to assess your unique challenges and objectives and identify which ITSM software best addresses these requirements.

A few factors to keep in mind during your selection process include:

• First, assess how well the ITSM software aligns with your organization’s specific goals and requirements. Consider the features and functionalities that are most important for your business processes and how the software will support your strategic objectives. For instance, if you’re struggling with longer-than-anticipated resolution times, you might seek out a platform that offers robust incident management capabilities and extensive workflow automation tools.

• Next, evaluate whether the technology can grow with your organization. Choose a solution that can handle an increasing volume of users, incidents, and changes without compromising performance or requiring frequent upgrades. This is particularly important for businesses operating in dynamic environments or those expecting rapid expansion in the future.

• Don’t forget to determine how well the ITSM software integrates with your existing systems, such as enterprise resource planning (ERP), customer relationship management (CRM), and other IT management tools. Seamless integration is crucial for maintaining workflow efficiency and data consistency across platforms. We suggest requesting a free trial or demo to ensure that softwares connect smoothly to your current infrastructure.

• Lastly, verify that the potential solutions comply with relevant industry regulations and standards. Robust security features are vital for protecting sensitive data and maintaining compliance with legal and organizational requirements. To do this, you’ll need to evaluate the track record of providers by researching client reviews, testimonials, and possibly reaching out to peers within your industry.

Freshservice for your ITSM needs

Freshworks’s Freshservice acts as the market’s premier ITSM platform, providing an impressive array of features designed to optimize resource allocation, streamline workflows, and ensure alignment with larger business objectives.

Freshservice provides all the tools your business requires to expertly navigate IT service management; standout features include:

• Incident management, problem management, change management, and release management attributes ensure that all areas of IT operations are sufficiently monitored and optimized.

• Unified Service Catalog offers powerful and extensible workflows that help streamline service delivery.

• Support portal and knowledge base act as useful self-help resources that assist end-users in resolving issues autonomously.

• Robust AI and ITSM automation potential powered by Freddy AI. Freddy serves to significantly enhance productivity by automating routine tasks, such as ticket routing, categorization, and auto-responses.

• Service Health Monitoring delivers a user-centric view into the state of your digital operations by tracking the health of your business and technical services.

• Asset normalization creates a unified view of all resources across multiple systems, offices, and clouds, while our integrated CMDB helps to identify the interdependencies between them.

Even better, we not only provide our clients with an arsenal of useful ITSM tools, but are also dedicated to ensuring that they can use them to their fullest potential. Users can easily access our comprehensive Support Center 24/7 to help resolve common issues, while our live support agents are also on standby to assist with more complex problems. Here at Freshworks we’re committed to transparency, accountability, and most importantly, your satisfaction – try out a free trial or request a demo to experience the Freshservice advantage for yourself today!