The State of Service Management 2021

ITSM 2021
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In Q2 2021, Praecipio Consulting and ITSM.tools co-ran an industry survey that extended the coverage of the earlier ITSM.tools “Future of ITSM” surveys that were conducted in 2017 and 2019. This new State of Service Management survey not only extended the breadth of coverage, but it also elevated the questioning from IT service management (ITSM) to service management – to reflect the growing adoption of enterprise service management, or “service management,” strategies.

The full results of the survey are available in the downloadable Praecipio 2021 State of Service Management Report, while this article shares some of the key findings in summary form across the following five areas:

  1. Business value
  2. Employee Wellbeing
  3. Service management
  4. Technology
  5. Experience and improvement
This article shares some of the key findings from the joint @ITSM_tools and @praecipio 2021 State of Service Management Report across 5 key areas of: business value, employee wellbeing, service mgmt, technology, & experience &… Click To Tweet

Business value

  • The majority of survey respondents (63%) feel that they know enough about their companies’ products and services, markets, and customers. Respondents in the smallest of organizations are more likely to rate their company knowledge highly and least likely to want to know more.
  • Most respondents (84%), across organizations of all sizes, understand the adverse impact their service issues and failures have on business operations. However, those who work in smaller and larger organizations are least likely to understand the business impact of their team’s service issues and failures.
Survey from @ITSM_tools & @praecipio finds that 84% of respondents, across orgs of all sizes, understand the adverse impact their service issues & failures have on business operations #ITSM Click To Tweet

Employee wellbeing

  • 81% of survey respondents think that working in their team will get harder over the next three years. The respondents who work in the smallest organizations are least likely to think that working in their team is going to get harder.
  • 58% of respondents reported that their work is adversely affecting their personal wellbeing. Which is, unfortunately, three out of every five employees.
81% of people think that work in their team will get harder over the next three years according to a new survey from @ITSM_tools & @praecipio. #ITSM Click To Tweet

Service management

  • The majority of organizations have either started or are planning to use ITSM capabilities outside of IT – with 57% having strategies in-flight and another 14% planning to extend service management capabilities outside of IT. Only 21% of organizations have no plans. The smallest and largest organizations are most likely to be well-advanced with their service management strategy.
  • “Service management” is a more popular term of choice within organizations, than “enterprise service management,” for the use of ITSM capabilities outside of IT.
  • Customer service/support is the most popular use case for service management outside of IT (at roughly half of all organizations). When this is adjusted to reflect only those organizations with in-flight service management strategies, the level is 88%.
Survey from @ITSM_tools & @praecipio finds that 57% of orgs have either started or are planning to use #ITSM capabilities outside of IT. With another 14% planning for it. Click To Tweet

Technology

  • The level of service management tool churn is still high – only one-third of organizations have no plans to change their service management tool in 2021 or 2022, with 17% currently in the process of changing and another 24% expecting to during the rest of the calendar year. The organizations planning to adopt a service management approach or in the early stages of adoption are most likely to be changing or planning to change their service management tool in 2021.
  • The on-premises delivery model is now only in place for 26% of service management tools, with the cloud delivery model accounting for 44%. A final 22% of service management tools use a hybrid delivery model that encompasses both on-premises and cloud.
  • 40% of organizations currently employ intelligent automation capabilities for service management. Interestingly, larger organizations are currently less likely to already be using intelligent automation than smaller organizations.
40% of organizations currently employ intelligent automation capabilities for service management according to a survey from @ITSM_tools & @praecipio. #automation #ITSM Click To Tweet

Experience and improvement

  • When respondents rated their team’s delivered experience to that of other companies, 75% felt that it was the same or better. Only 14% thought they were behind other companies. Respondents who work in smaller organizations are more likely to think that their team provides a superior employee experience. Whereas those in organizations with 5000+ employees are more likely to think that their team is behind other companies.
  • Agile practices are being used more than the combined-version, and not insignificant, level of ITIL use (ITIL 4 and earlier versions). Respondents who see their team’s employee experience as being inferior to that of other companies are less likely to be using Agile or DevOps practices.
  • ITIL 4 has the highest level of planned adoption among respondents. Respondents who see their team’s employee experience as the same or better than other companies are significantly more likely to have adopted ITIL 4 already.
58% of respondents in a new @ITSM_tools & @praecipio survey reported that their work is adversely affecting their personal wellbeing. Which is, unfortunately, three out of every five employees. #wellbeing #ITSM Click To Tweet

Importantly, the 2021 State of Service Management survey confirmed the growing adoption of service management strategies in organizations of all sizes, adding extra flavor in terms of what we know about how this is happening.

If you would like a video-based view of the survey results, then this is available via a Praecipio State of Service Management webinar here.

Principal Analyst & Content Director at ITSM.tools | Website

Principal Analyst and Content Director at the ITSM-focused industry analyst firm ITSM.tools. Also an independent IT and IT service management marketing content creator, and a frequent blogger, writer, and presenter on the challenges and opportunities for IT service management professionals.

Previously held positions in IT research and analysis (at IT industry analyst firms Ovum and Forrester and the UK Post Office), IT service management consultancy, enterprise IT service desk and IT service management, IT asset management, innovation and creativity facilitation, project management, finance consultancy, internal audit, and product marketing for a SaaS IT service management technology vendor.

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