IT service management refers to the process of designing, managing, delivering and optimizing the IT services an organization provides to users. It is focused on matching IT processes and services with business needs and objectives to help an organization perform its function.
It is a customer-focused approach to delivering information technology and provides a framework to structure and formalize all IT-related activities and the interactions of IT support staff with customers and clients.
Service management in IT is important because it can help standardize IT delivery processes using documented procedures. It helps to save costs by building an efficient IT function that can provide insights to the business that can help in IT decision making and future planning. When done well it leads to increased efficiency and productivity because if the way it defines roles and responsibilities to meet IT management and business needs.