[Term of the Day]: Service Portfolio Management

Term of the Day

"Service Portfolio Management"

Definition — What is Service Portfolio Management and its purpose?

A service portfolio describes a provider’s services in terms of business value. It is the complete set of services that are managed by a service provider.

It comprises three categories of services:

Service Pipeline
Service Catalog
Retired Services

A service provider deploys service portfolio management to control the entry of any service into the service portfolio by tracking any investment in services through its entire lifecycle starting from the development till the delivery and retired stages.

Purpose:

The main purpose of service portfolio management is to ensure that the service provider has the right IT services, within the defined level of investment, to cater to its customers.

It ensures that the entry or exit of service from any stage is dependent on the approval of funding. It also requires an appropriate financial plan to recover the costs or to generate a required level of profit, depending on the nature of the service provider’s organization.