As we advance through 2024, IT service management (ITSM) remains a pivotal cornerstone for organizations aiming to streamline their services and manage IT operations more effectively. With approximately 48 percent of organizations rating their ITSM capabilities as "great" or "good," there's a burgeoning confidence in current ITSM strategies. However, this sentiment is balanced by an equal number acknowledging the necessity for significant enhancements.
This post delves into the nuances of ITSM adoption, the implications of the remote work era, the transformative role of artificial intelligence (AI) and automation, the intensifying investment in cloud infrastructure, and the evolving focus on the employee experience.
1. ITSM adoption and perception:
- Large organizations typically have more complex infrastructures and have been leading the adoption of ITSM, necessitating robust solutions for their extensive requirements. (Imarc Group, 2024)
- Small- and medium-sized enterprises are adopting ITSM solutions at the highest growth rate, seeking cost savings and flexibility to compete with larger businesses. (Research and Markets, 2024)
- A significant growth in the ITSM market is anticipated, with a forecasted size of $22.1 billion by 2028, growing at a CAGR of 15.9%. (MarketsandMarkets, 2024)
- North America is expected to hold a major share of the cloud ITSM market, with an increasing number of businesses adopting hybrid cloud and on-premises solutions. (Mordor Intelligence, 2024)
- The integration of AI in ITSM solutions is not just a trend, it is also starting to make a real impact, with predictions that 70% of organizations will implement structured automation by 2025, significantly up from 20% in 2021. (TOPdesk, 2024)
- Challenges in ITSM adoption often include a lack of senior management buy-in, inadequate tools, and the need for strategic alignment at higher levels. (AXELOS, 2022)
2. Impact of remote work on ITSM:
- There's a notable shift towards AI-driven automation, with reports suggesting that companies implementing AI-powered knowledge base tools have improved first-contact resolution by five to seven percentage points and reduced handling time by 20 to 30 %. (SDI, 2024)
- Industries with unique remote work challenges, like the entertainment industry, are expected to increasingly embrace remote work as technological constraints are overcome. (Cybersecurity Intelligence, 2023)
- With the proliferation of devices—29 billion connected to the internet—IT helpdesks face escalating challenges, causing 80 percent of IT leaders to work longer hours. (Cybersecurity Intelligence, 2023)
- The management complexity for IT teams has risen, with 35 percent finding the variety of devices and locations challenging. (Cybersecurity Intelligence, 2023)
- The overloading of VPNs is causing performance issues, leading to a pivot away from traditional VPNs to more modern solutions. (Cybersecurity Intelligence, 2023)
- The transition to remote work has led to a surge in ITSM ticket volumes, exceeding the historical annual growth rate and placing added pressure on IT staff. (InvGate, 2022)
3. AI and automation in ITSM:
- Organizations using generative AI for ticket resolution have seen a remarkable 75% reduction in resolution times, leading to increased productivity and happier employees. (SDI, 2024)
- Around 60% of companies are now using AI-based ITSM tools to enhance their service desk functions. (Rezolve, 2023)
- AI-driven automation in ITSM can potentially reduce incident resolution times by up to 50%. (Rezolve, 2023)
- About 75% of ITSM professionals believe that AI will significantly impact ITSM by 2025. (Rezolve, 2023)
4. Cloud infrastructure spend:
- Cloud-native platforms are on the rise, with predictions that by 2025, 95% of new digital workloads will be on such platforms, a significant increase from 30% in 2021. (SDI, 2024)
- Investment in cloud infrastructure services has increased remarkably, with a 29% growth from the previous year, indicating accelerated cloud adoption. (Rezolve, 2023)
- The leading players in the cloud market are Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, which collectively hold about 66% of the global market share. (Rezolve, 2023)
- Multi-cloud strategies are becoming more prevalent, with 42% of companies using four or more public cloud services for their workloads. (Tech Target, 2023)
5. Employee experience:
- Organizations using AI and automation report that employees believe they can increase their workload by 30% due to the efficiency gains provided by these technologies. (SDI, 2024)
- Enhancing employee experience is a growing focus in ITSM, with 67% of organizations acknowledging the importance of better employee experiences. (Halo ITSM, 2023)
- There's an increasing trend to improve employee engagement and retention through enhanced ITSM-driven experiences. (Rezolve, 2023)
- The adoption of AI and intelligent automation in ITSM is set to play a significant role in improving employee experiences by reducing incident resolution times and increasing the availability of IT support. (AXELOS, 2022)
The ITSM landscape continues to evolve. Organizations are adapting to the demands of remote work, exploring the advantages of AI and automation, investing heavily in cloud services, and placing a renewed emphasis on the employee experience. By embracing these trends, companies can stay resilient and agile in the face of ongoing digital transformation.
