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ITSM KPIs: controlling IT service costs and margins

Rédigé par iTop by Combodo | May 14, 2024, 8:51:00 AM

ITSM tools throw off indicators by the hundred, about how the service desk is running, about the infrastructure behind it, about the support teams themselves. Used properly, those KPIs do more than fill a dashboard. They improve the economics of IT delivery.

ITSM KPIs: the facts, and nothing but the facts

An ITSM tool sits at the centre of IT delivery and touches every part of it – infrastructure, people, processes, the help desk. That position is what lets it produce the indicators you need to measure how an IT operation is actually performing:

  • incidents generated by a given piece of equipment
  • tickets handled inside and outside working hours
  • tickets by incident type, by user or client, by support agent
  • average resolution time for a given type of incident, or handling time for a given type of request
  • SLA compliance rates

That is a small selection. The point is that an ITSM tool gives you something tangible to analyse. It turns what IT teams feel into something you can look at — the familiar “there aren’t enough of us, we have too much to do” or “this system causes constant incidents” becomes a number you can act on or dismiss.

Activity indicators are worth pairing with satisfaction surveys, which any decent ITSM tool should be able to run. It is the only way to take the pulse of the people on the other side of the service desk at regular intervals.

So operations managers, support managers and IT directors have a wide set of KPIs to work with. What they do with them differs, though, depending on whether they run an internal IT department or a service provider’s delivery centre. The economics are not the same.

Internal IT: KPIs to size the resources

In an internal IT department, help desk KPIs – time per ticket, which technician handled it, and so on – are how you understand and control the cost of support. Watching them lets you spot things degrading, catch a drift before it becomes a problem, and adjust people and equipment accordingly.

A fall in service quality might point toward more automation, or toward opening another channel into support, a chatbot, say. Whose contribution you then measure, naturally.

The same indicators are what you use to argue for resources. Activity growing? If ticket volume is rising and there is no realistic way to cut the time spent on each one, the KPIs make the case for more people. A technician leaving? The KPIs show what that actually cost you in responsiveness and service quality, rather than leaving it to impressions.

In larger organisations, IT departments often outsource level 1 support, sometimes level 2 as well. ITSM indicators make those providers easier to manage: they measure performance against contractual commitments, typically an Operational Level Agreement. Satisfaction surveys add the qualitative half. The relationship then rests on something both sides can see.

Service providers: KPIs reveal what delivery really costs

For a provider delivering against SLAs, ITSM KPIs measure contractual performance directly – time to acknowledge a request, time to resolve it. Alongside satisfaction surveys, they give review meetings something factual to work from instead of impressions, and they push the delivery team toward genuine continuous improvement.

More to the point, the time and resources spent on each ticket – all tracked by the ITSM tool – translate straight into cost of delivery. For every contract and every client, a provider can compare what the service sold for against what it cost to provide. That gives a real view of margin, and with it the ability to adjust resourcing, stop over-delivering, or revisit pricing.

It also lets a provider check, with numbers rather than hope, that it is delivering the level of service the client actually bought. In the pressure of day-to-day work it happens that a technician keeps going on a ticket well past what the contract requires, out of conscientiousness, or because the problem is interesting. ITSM indicators quietly remind the team and the delivery manager what the commercial shape of the engagement is.

The same data supports other things worth doing. Tracking a client’s consumption against a block of prepaid hours, so you can propose an extension before it runs out. Or targeted analysis: what a release deployment actually costs, what fixing a bug costs, figures that feed into a better understanding of operational costs over time.

Whether you run a delivery centre or an internal IT department, the KPIs an ITSM tool produces turn out to be formidable instruments for steering operations and keeping costs under control.