TY - JOUR AB - Purpose– The purpose of this paper is to first evaluate the effect of IT service management (ITSM) tools in a practical environment followed by sharing experience in developing management process modules in a service outsourcing model. In order to improve the fault correlation from business and user perspectives, the aim is to propose a framework to automate network and system alerts with respect to its business service impact and user impact for proactive notification to IT operations management.Design/methodology/approach– Three years of quantitative analysis using real operational data were used to present the effect on ITSM tools adoption. For the proposed framework, it consists of a hybrid case‐ and rule‐based reasoning module and a new approach for fault mapping with business criticality and user activities.Findings– Over the past decade there has been significant focus in the context of ITSM in the IT services operations industry. In the market of ITSM software tools, customer and operational processes are not sufficiently developed nor integrated with other management applications following IT services daily processes which make it difficult to correlate faults to business service impacts and user impacts. For any fault of the same severity level, traditional fault discovery and notification tools provide equal weighting from business and user points of view.Research limitations/implications– Most of the related works were done individually in the entire ITSM processes. Moreover, some works present the enabling technology for outsourced facilities management rather than IT operations management. Lack of research activity was noted in the areas of user and business impact correlation with service management.Practical implications– This paper outlines the implications of implementing ITSM tools in outsourced IT operation. The business continuity planning also forms one of the critical factors to improve responsiveness in service management.Originality/value– This paper illustrates the effect of ITSM tools adoption by analyzing real operation data. Central to the service‐oriented philosophy in ITSM, we introduce a framework to correlate with user and business elements. Inclusion of the dimensions of business and user impact in the fault correlation process could further improve service efficiency and user satisfaction. VL - 5 IS - 3 SN - 1472-5967 DO - 10.1108/14725960710775072 UR - https://doi.org/10.1108/14725960710775072 AU - Wan Stewart H.C. AU - Chan Yuk‐Hee PY - 2007 Y1 - 2007/01/01 TI - Improving service management in outsourced IT operations T2 - Journal of Facilities Management PB - Emerald Group Publishing Limited SP - 188 EP - 204 Y2 - 2024/09/26 ER -