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The centre and origin point of the ITIL Service Lifecycle, the ITIL Service Strategy (SS) volume,[5] provides guidance on clarification and prioritization of service-provider investments in services. More generally, Service Strategy focuses on helping IT organizations improve and develop over the long term. In both cases, Service Strategy relies largely upon a market-driven approach. The Service Strategy lifecycle stage is often considered as the core of the service lifecycle. In Service Strategy stage, the strategic approach for the whole lifecycle is identified to provide values to the customers through IT service management. Key topics covered include service value definition, business-case development, service assets, market analysis, and service provider types. List of covered processes: Strategy management for IT Services Service portfolio management Financial management for IT services Demand management Business relationship management For candidates in the ITIL Intermediate Capability stream, the Service Offerings and Agreements (SOA) Qualification course and exam are most closely aligned to the Service Strategy (SS) Qualification course and exam in the Lifecycle stream. Service Portfolio Management[edit] The customer needs services to achieve business outcomes. The service provider should ensure it can provide these services at the required level. The purpose of Service Portfolio Management is ensuring the service offerings are defined and meet the requirements of the customers. The service portfolio contains the services offerings that are available from the service provider. The service portfolio comprises: the pipeline section, which contains the services that are yet to be offered; the service catalogue section, which contains the details of operational services; and the retired section, which contains details of the services that are no longer offered. Financial management for IT services[edit] Main article: Financial management for IT services IT Financial Management comprises the discipline of ensuring the IT infrastructure is obtained at the most effective price (which does not necessarily mean cheapest) and calculating the cost of providing IT services so an organization can understand the costs of its IT services. These costs may then be recovered from the customer of the service. This is the second component of the service delivery process.

Responding to growing dependence on IT, the UK Government's Central Computer and Telecommunications Agency (CCTA) in the 1980s developed a set of recommendations. It recognized that, without standard practices, government agencies and private sector contracts had started independently creating their own IT management practices. The IT Infrastructure Library originated as a collection of books, each covering a specific practice within IT service management. ITIL was built around a process model-based view of controlling and managing operations often credited to W. Edwards Deming and his plan-do-check-act (PDCA) cycle.[1] After the initial publication in 1989–96, the number of books quickly grew within ITIL Version 1 to more than 30 volumes. In 2000/2001, to make ITIL more accessible (and affordable), ITIL Version 2 consolidated the publications into nine logical "sets" that grouped related process-guidelines to match different aspects of IT management, applications and services. The Service Management sets (Service Support and Service Delivery) were by far the most widely used, circulated, and understood of the ITIL Version 2 publications.[citation needed] In April 2001, the CCTA was merged into the OGC, an office of the UK Treasury.[2] In 2006, the ITIL Version 2 glossary was published. In May 2007, this organization issued ITIL Version 3 (also known as the ITIL Refresh Project) consisting of 26 processes and functions, now grouped into only 5 volumes, arranged around the concept of Service lifecycle structure. ITIL Version 3 is now known as ITIL 2007 Edition. In 2009, the OGC officially announced that ITIL Version 2 certification would be withdrawn and launched a major consultation as per how to proceed.[3] In July 2011, the 2011 edition of ITIL was published, providing an update to the version published in 2007. The OGC is no longer listed as the owner of ITIL, following the consolidation of OGC into the Cabinet Office. In 2018, Axelos started work on the next version of ITIL, to be called ITIL 4 and the first part to be released in early 2019.

ITIL (formerly an acronym for Information Technology Infrastructure Library) is a set of detailed practices for IT service management (ITSM) that focuses on aligning IT services with the needs of business. In its current form (known as ITIL 2011), ITIL is published as a series of five core volumes, each of which covers a different ITSM lifecycle stage. Although ITIL underpins ISO/IEC 20000 (previously BS 15000), the International Service Management Standard for IT service management, there are some differences between the ISO 20000 standard, ICT Standard by IFGICT and the ITIL framework. ITIL describes processes, procedures, tasks, and checklists which are not organization-specific or technology-specific, but can be applied by an organization for establishing integration with the organization's strategy, delivering value, and maintaining a minimum level of competency. It allows the organization to establish a baseline from which it can plan, implement, and measure. It is used to demonstrate compliance and to measure improvement. (It is to be noted that there is no formal independent 3rd Party Compliance Assessment available for ITIL compliance in an organisation, Certification in ITIL is only available to individuals and relates to their knowledge of the 5 books) Since July 2013, ITIL has been owned by AXELOS, a joint venture between Capita and the UK Cabinet Office. AXELOS licenses organisations to use the ITIL intellectual property, accredits licensed examination institutes, and manages updates to the framework. Organizations that wish to implement ITIL internally do not require this license.