Adding ITAM to your ITSM tool? Here’s what you need to know to succeed

IT service management (ITSM) has been a cornerstone of the IT lifecycle, helping organizations maintain service quality, security, and operational continuity. ITSM tools are widely used to manage processes such as patching, upgrades, and incident response.

“The market for IT service management is expanding rapidly as a result of growing cloud usage, digital transformation, and industry-wide demand for effective IT operations,” according to S&S Insider. The global market is projected to grow from $14.77 billion in 2025 to $47.88 billion by 2032, stated the same press release.

In recent years, many ITSM vendors have introduced IT asset management (ITAM) capabilities into their platforms. The promise of managing services and assets in one place is appealing. However, ITSM and ITAM are fundamentally different disciplines; combining them without the right approach can lead to costly mistakes.

Let’s explore the differences between ITSM and ITAM, the risks of a DIY approach, and what organizations should consider before making the leap (solo or not).

The difference between ITSM and ITAM

IT service management focuses on operational continuity and support — ensuring systems remain available and secure, processes run smoothly, and incidents are resolved quickly. ITSM provides a structured framework, best practices, and processes that guide you on how to manage, plan, test, and deploy software patches. Effective ITSM keeps the lights on, so to speak, and minimizes disruption.

ITAM, by contrast, is about governance, compliance, and optimization. An effective ITAM practice helps your organization understand which assets you own, what you are entitled to use, and how to maximize their value. ITAM involves managing complex licensing agreements, reducing financial risk, and ensuring compliance with vendor terms.

While there is some overlap, the objectives, stakeholders, and expertise required for each are vastly different. Treating ITAM as an extension of ITSM can create challenges if the correct resources and knowledge are not in place.

Why adding ITAM isn’t always straightforward

Adding ITAM functionality to an ITSM tool may seem like a natural progression, but without proper planning, it can become an expensive exercise. Common challenges can include:

• Data accuracy: ITAM relies on precise data. If your tool cannot distinguish between old and new data or validate accuracy, decisions based on that data may be flawed.
• Interpretation: Collecting data is only the first step. Turning that data into actionable insights requires expertise in licensing, compliance, and optimization.
• Complexity of licensing: ITAM involves navigating agreements from multiple vendors, each with unique terms and conditions. Misinterpretation can lead to compliance risks and unexpected costs.

These obstacles are not a reflection of organizational capability. They highlight the overarching complexity of ITAM as a discipline. Even experienced IT teams can underestimate the effort required to implement ITAM effectively.

The reality of DIY ITAM

Many organizations choose a DIY approach because it can offer more control and independence outside of a third party.

However, this method has drawbacks, including a slow time-to-value and a high total cost of ownership. Beyond the tool itself, organizations need skilled staff to manage, interpret, and maintain ITAM processes. Without expertise, it is difficult to validate whether the tool is collecting the right data or whether entitlements are correctly applied — risking inaccurate information.

Gartner® research on large-scale IT initiatives, such as enterprise resource planning (ERP) systems, “predicts that by 2027, more than 70% of recently implemented ERP initiatives will fail to fully meet their original business goals.” ERP systems are designed to integrate core business processes like finance, HR, supply chain, and customer management into a single platform. These projects share similar complexity with ITAM implementations, which require governance, lifecycle controls, and specialized expertise.

The lesson is clear: ITAM implementations can face comparable risks if approached without adequate planning and resources.

Before adopting an ITAM extension for your ITSM tool, consider:

• Do you have the expertise to manage and interpret ITAM data effectively?
• Are you familiar with licensing practices across major software publishers?
• What is the true cost, including salaries and benefits for skilled staff?
• Can you wait months (or years) to see measurable value?

Managed services: A smart alternative

For many organizations, a managed ITAM service can offer a faster, more cost-effective route. These services provide immediate access to expertise without the overhead of building in-house capabilities.

What are the benefits? Experts accelerate compliance and licensing optimization, which can lead to reduced risk. Managed services shorten the implementation timeline and reduce trial-and-error delays. You can also benefit from more predictable costs, and avoid the hidden expenses of recruitment, training, and ongoing maintenance.

ITAM introduces a different set of challenges that require specialized knowledge and resources. As ITSM platforms increasingly add ITAM features, organizations should approach these tools with a clear understanding of what is involved.

For those with the right skills and appetite for control, a DIY method can work well. For others, managed services may deliver better outcomes with less risk and lower costs. Not sure what the right path is for your organization? Whether you’re considering an in-house approach or are interested in learning more about managed services, SHI’s experts are on hand to help.

We bring decades of experience in ITAM, ITSM, and IT lifecycle services to help you adopt the right approach, whether that’s augmenting an ITSM tool, implementing managed ITAM services, or optimizing existing processes. With deep expertise across both disciplines, our teams can bridge the gap — combining proven ITAM knowledge, managed services, and technology partnerships to help ensure your investments deliver long-term value, not added complexity.

NEXT STEPS

Ready to add ITAM without adding risk? Connect with one of SHI’s experts to map the best path forward for your ITSM environment.

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