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June 9, 2025

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ITSM vs ITIL: understanding the distinction

“What’s the difference between ITSM and ITIL?” – if you’ve searched for an answer to this question, trust me, you are not alone. Many IT professionals, CIOs and even business leaders often struggle to differentiate between these two terms and use them interchangeably.

Both ITSM and ITIL play a vital role in delivering IT services, but they are distinct. This article should shed light on their distinction.

Let’s say, you are running a busy fancy restaurant. You need to take orders, prepare food, serve the customers, and keep the kitchen run smoothly. This entire system that ensures your restaurant operates efficiently is IT Service Management (ITSM). ITIL, on the other hand, is like a guiding book helping run the restaurant effectively and efficiently.

IT Service Management (ITSM) is the overall practice of managing IT services, and ITIL is a framework that guides ITSM.

Let’s break it down further.

What is ITSM (IT Service Management)?

ITSM is about keeping IT services reliable, efficient and aligned with business needs.
 
It’s all about making sure that IT services run smoothly, just like a restaurant manager making sure that customers get their dishes on time. It covers various disciplines from fixing issues (incident management), making improvements (change enablement) and tracking assets (like kitchen equipment or software and hardware in IT).
 
Tools in action: ITSM 
Think of ITSM tools as your reliable kitchen assistants in the busy restaurant you run. These tools make sure all the behind-the-scenes operations—like taking orders, prepping dishes and cleaning up spills—happen without delay. These tools help organizations design, automate and streamline IT service workflows just like how a good chef’s brigade keeps the kitchen humming.
 

These tools help:

Automate ticketing, approvals and escalations 

Manage incidents, changes and assets in real time 

Integrate with DevOps and security systems 

Enable user self-service portals and knowledge management 

Track SLAs and XLAs with visual dashboards 

Understanding the core of ITSM 

Process-focused: clear steps for fixing problems, managing changes and handling service requests 

Customer-oriented: meeting real business needs with user satisfaction at the centre 

People, Process, and Technology: working together to deliver top-notch service

What is ITIL?

ITIL is the most tried and tested playbook for ITSM. It provides a set of best practices to help organizations effectively and efficiently run and continually improve IT services. Developed in the 1980s and evolving over time, ITIL offers guidance, such as:

Handling service outages efficiently (incident management) 

Making sure system updates don’t disrupt business (change management) 

Building strong relationships at all levels to co-create value 

Applying principles like focus on value, optimize and automate 


Tools in action: ITIL
ITIL helps enterprises make informed decisions when selecting ITSM tools by providing a list of Accredited Tool Vendors aligned with ITIL best practices. The list is maintained under the ITIL-Accredited Tool Vendors (ATV) Programme and ensures enterprises can benefit from:

Industry standard. Companies can access the only authoritative and most trustworthy information about vendors and tools aligned with ITIL best practices.

Verified vendors’ expertise. Businesses can ensure that selected vendors have professional teams committed to evolving and improving their products in adherence to recognized best practices for customers’ success.

Time and effort savings. Enterprises can streamline the tool and vendor information gathering process allowing more time for their specific needs and trusting that basic ITIL processes are covered for you by the ATV accreditation.

Risk mitigation. Customers can minimize commercial risks by opting for ATV-certified software, ensuring compliance with intellectual property rights.

ITSM vs. ITIL: a comparison

ITSM is the big picture, covering everything about managing IT services, while ITIL is one of the best ways to implement ITSM. Here’s a simple comparison:

Evolution of ITSM and ITIL

1. Beyond IT: Though the acronym of ITSM is ‘IT’ Service management, it is no more relevant just to IT. The ITSM approach which helped an IT organization manage IT services better is now helping HR, finance and others respond to manage their internal and external services.
2. Evolution of ITIL: Originally the acronym meant IT Infrastructure Library. Since 2007, it has expanded well beyond just running the IT infrastructure, so the acronym has been retired. ITIL has continually adapted to changes in the industry. ITIL 4 is designed to work with lean and agile empowering the companies to meet the goals of Industrial Revolution 4.0 and digital transformation.  
3. Evolution of ITSM tools: The tools have taken advantage of AI and automation handling repetitive IT tasks and improving response times to let the service provider’s people focus on higher value relationship and experience outputs.
4. Business-centric metrics: Companies are measuring IT performance based on business impact rather than just technical statistics. At the same time, user and customer experience are being incorporated into Experience Level Agreements (XLAs) to ensure loyal users and customers.
5. Security-first approach: ITSM is being integrated with cybersecurity frameworks to improve risk management.

Conclusion

Rather than viewing ITSM and ITIL as competing concepts, it’s more beneficial to see them as complementary.

ITSM is the ‘What’- the broader discipline of managing and delivering IT services. ITIL is the ‘How’ – a proven and adaptable framework offering guidance on how to do ITSM well. Organizations that have embraced ITIL find it as de facto model for ITSM, making the two seem synonymous. However, ITIL is just one approach among many.

The ultimate goal, regardless of the frameworks adopted, should always be to drive meaningful business value, deliver better experiences, and meet stakeholder expectations. Whether you are providing consulting, advisory or training services, or transforming your own organization, consider using the phrase “ITSM with ITIL” to reflect their partnership. Embracing ITIL’s guiding principles like focus on value, collaboration and continuous improvement helps ensure that your IT services are not just efficient but truly strategic.

In a world where IT is no longer just a support function but a business enabler, understanding and applying both ITSM and ITIL together can be your key to sustained success.