What is IT Service Management (ITSM) in 2025? A Strategic View from the CIO's Chair
- Richard Keenlyside
- May 6
- 3 min read
TL;DR:
In 2025, IT Service Management (ITSM) has evolved into a strategic enabler, blending AI, automation, and intelligent data insights to drive business performance. It’s no longer just about ticket resolution but delivering measurable value at speed.
Introduction: The Strategic Role of ITSM in 2025
As we progress through 2025, IT Service Management (ITSM) is undergoing a transformation from a reactive operational function to a strategic pillar of enterprise value. Having led large-scale IT operations globally, I’ve witnessed firsthand the shift in expectations placed upon IT leaders: we’re no longer just service providers—we’re business enablers. ITSM today is about aligning technology operations with business goals, ensuring agility, resilience, and continuous improvement.
What is ITSM in 2025?
IT Service Management in 2025 is a business-centric approach that blends traditional ITIL-based processes with automation, artificial intelligence, and predictive analytics. The goal? Enhance user experience, operational efficiency, and strategic agility.
Where ITSM once focused on resolving incidents and managing service requests, modern ITSM platforms now:
Integrate AI and machine learning to predict issues before they occur
Use automation to streamline change management and deployments
Offer real-time dashboards and analytics for decision-making
Align with business outcomes rather than just SLAs
This evolution is especially critical in industries with distributed teams and multi-national operations—like the LoneStar Group, where I oversee global IT strategy across 13 business units.
Key Trends Defining ITSM in 2025
1. AI-Powered Service Management
AI-driven virtual agents handle first-line support, drastically reducing human workload. AI also enables anomaly detection, predictive maintenance, and root cause analysis—proactive IT support is the new norm.
2. Hyperautomation
Routine tasks—like user provisioning, password resets, and software deployment—are fully automated. Platforms like ServiceNow and Freshservice now offer hyperautomation capabilities, freeing up resources to focus on innovation.
3. ITSM as a Business Value Generator
Today’s ITSM is tied directly to KPIs like customer satisfaction, revenue enablement, and compliance. It’s not about closing tickets—it’s about enabling business outcomes.
4. Service Integration and Management (SIAM)
In multi-vendor environments, SIAM ensures seamless delivery across providers. This model is especially relevant in globally outsourced structures, where ITSM must orchestrate services across time zones and territories.
5. Experience-Level Agreements (XLAs) Over SLAs
We are seeing a shift from Service-Level Agreements (SLAs) to Experience-Level Agreements (XLAs), focusing on user satisfaction and journey metrics over mere uptime percentages.
The CIO’s Imperative: Governing ITSM at Scale
From my role overseeing IT across various countries, the successful delivery of ITSM hinges on a well-defined operating model. This includes:
A unified service catalogue across business units
Standardised governance and policy frameworks
Continuous service improvement (CSI) loops built into every process
Security-first architecture, aligning ITSM with cybersecurity policies
I implemented this at a client in Germany, transitioning legacy systems to a unified Azure environment, cutting £2 million in technical debt while enhancing service resilience.
FAQs
What’s the biggest change in ITSM since 2020?The integration of AI and automation into core service workflows, making ITSM more proactive and strategic.
Is ITSM still relevant with DevOps and Agile?Absolutely. Modern ITSM supports Agile and DevOps by providing structure, compliance, and enterprise visibility.
How do XLAs improve service delivery?XLAs focus on user perception and satisfaction, which are critical in retaining talent and maintaining digital workplace productivity.
Conclusion: A Strategic Evolution
IT Service Management in 2025 is no longer just an IT responsibility—it’s a boardroom concern. For CIOs and IT leaders, the focus must now be on embedding ITSM into the DNA of the business. This means viewing service management not as a cost centre, but as a value centre.
If you don't measure ITSM by the value it brings to your organisation, you're not measuring it right.
Richard Keenlyside is the Global CIO for the LoneStar Group and a former IT Director for J Sainsbury’s PLC.
Call me on +44(0) 1642 040 268 or email richard@rjk.info.
Follow me on X https://x.com/cioinpractice & LinkedIn https://www.linkedin.com/in/richardkeenlyside/
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