ISO 20000 : Clause 8.4 - Supply and demand

by Alex .

International IT service management standards are contained in ISO 20000. These guidelines offer businesses a foundation for managing and offering IT services to clients successfully. The framework utilized by enterprises all over the world to manage their IT services, ITIL (Information Technology Infrastructure Library), serves as the foundation for the standard. In terms of supply and demand, ISO 20000 Clause 8.4 Supply and demand can be viewed as a set of standards that businesses can follow to satisfy the wants of their clients for IT services. Organizations can guarantee that the IT services they offer are dependable, productive, and economical by implementing the standard. As a result, client satisfaction and demand for their services may rise.

 ISO 20000 : Clause 8.4 - Supply and demand

However, enterprises must also be cognizant of the expenses involved in putting the standard into practice and maintaining compliance. Organizations will need to weigh the benefits of adopting the standard against the costs of doing so to determine how much time, money, and resources to invest in it. Overall, ISO 20000 may be viewed as a mechanism for businesses to expand their availability of high-quality IT services to fulfil consumer expectations while also making sure that they are doing it in a time- and money-saving manner.

It is crucial to remember that obtaining compliance with the ISO 20000 standard won't be simple. It takes a lot of work from the service management team, which involves fully understanding organizational procedures and standards requirements, aligning them, setting up a monitoring and improvement framework, and conducting regular compliance checks. As you put the ISO 20000 standard into practice, it may have a good effect on the level of service and customer satisfaction.

Why is managing supply and demand important in ISO 20000?

A worldwide standard for IT service management is ISO 20000. (ITSM). It outlines a framework for organizing and providing IT services that are tailored to an organization's requirements. In ISO 20000, clause 8.4 supply and demand is crucial since it makes sure that an organization's IT services are meeting the needs of its stakeholders and consumers.

The ISO 20000 standard for supply and demand management encompasses tasks including capacity planning, service level management, and availability management. Forecasting demand for IT services and making sure the company has the resources and expertise to meet that demand are both parts of capacity planning. The process of managing service levels entails deciding on the levels of service that will be offered to stakeholders and consumers, as well as monitoring and reporting on performance in relation to those service levels. The goal of availability management is to make sure that customers and stakeholders can use IT services when they're needed.

A company may make sure that it is providing IT services that fulfil the needs of its customers and stakeholders and that it is doing it in a cost-effective and efficient way by managing supply and demand properly. This can result in greater operational effectiveness, more customer happiness, and better alignment of IT with the organization's overarching goals and objectives. It is crucial to keep in mind that balancing supply and demand involves more than just the quantity of IT services; it also involves how those services affect the broader business. With the right balance and cost-effectiveness, an IT organization can help the business accomplish its strategic goals.

ISO 20000 Templates

Clause 8.4.1 - Budgeting and accounting for services

An important component of ISO 20000 is budgeting and accounting for services, which refers to the process of figuring out the costs of offering IT services, then assigning and controlling those costs. This involves tasks like cost estimation, planning, and cost recovery. Cost forecasting entails calculating the expenses related to offering IT services, taking into consideration things like the price of labour, hardware, and software. Budgeting entails distributing money to the organization that provides IT services to pay for those expenditures.

The practice of recovering costs related to delivering IT services from clients or other stakeholders who utilize those services is known as cost recovery. This may entail charging clients or stakeholders for the usage of IT services, or it may entail recovering expenses in other ways, such as by allocating resources among several clients. An organization should have a comprehensive grasp of the expenses related to delivering IT services and the income produced by those services to budget and account for services properly. For this, reliable budgeting and accounting procedures are needed, as well as precise cost and revenue data. In its clause 7.5 on financial management for services, the ISO 20000 standard specifies some requirements for budget and accounting of IT services.

According to the standard, IT service providers should have financial management procedures that will aid in comprehending service costs and assisting in decision-making regarding these costs. This can be accomplished by putting into practice sound financial management procedures, such as budgeting, financial analysis, cost recovery, pricing, reporting, and performance monitoring. Overall, budgeting and accounting for services is a crucial component of IT service management and is crucial for ensuring that an organization can offer IT services in a way that is both efficient and cost-effective, while also integrating IT with the firm's overall goals and objectives.

Clause 8.4.2 - Demand management

A worldwide set of guidelines for IT service management is called ISO 20000. (ITSM). It outlines the requirements for designing, implementing, delivering, and improving IT services. Demand management is one of the essential elements of ISO 20000 clause 8.4 supply and demand , and it refers to the procedures and actions taken to control the demand for IT services and make sure that they are in line with the organization's overall goals and objectives.

Demand management in ISO 20000 typically includes the following processes:

ISO 20000 Supply and demand

  • Service level management: This process oversees determining the service level requirements with the customers, coming to an agreement on those needs, and then making sure that those criteria are met through the provision of IT services.
  • Capacity management: Capacity management oversees making sure that the IT infrastructure can handle the demand for IT services both now and in the future. It involves both monitoring and managing the existing capacity utilization as well as forecasting and preparing for upcoming capacity needs.
  • Availability managementAvailability management oversees making sure that the IT services are accessible to satisfy the established service level standards. It entails organizing, creating, and preserving the accessibility of IT services.
  • IT service continuity: The management of IT service continuity oversees making sure that, in the case of a catastrophe or disruption, the IT services can be recovered and restored. The IT service continuity strategy is planned, created, and kept up to date.
  • Financial management for IT services: This process oversees making sure that the costs of providing IT services are recognized and that the IT services are provided in a way that is cost-effective. Accounting, spending plans, and payment for IT services are all part of it.

The IT organization can balance the supply and demand for IT services and match the delivery of those services with the overall aims and objectives of the company since all these processes are integrated with one another to fulfill end-to-end demand management. Demand management is a crucial procedure that aids IT firms in better understanding and satisfying the demands of their clients, making the best use of their resources, and in coordinating the provision of IT services with the organization's overall goals and objectives

ISO 20000 Templates

Clause 8.4.3 - Capacity management

One of the important processes in ISO 20000 for ensuring that the IT infrastructure can meet the demand for IT services both now and in the future is capacity management. The goal of capacity management is to make sure that the IT infrastructure is planned and set up to satisfy the company's present and future needs, and that any limitations or bottlenecks are located and fixed.

The main activities of capacity management in ISO 20000 include:

  • Capacity planning: Planning for future capacity requirements entails forecasting and making plans while taking into consideration variables like corporate expansion, seasonal swings, and the launch of new services or applications.
  • Performance management: Performance management is keeping track of and managing the IT infrastructure's performance, including the tracking of key performance indicators (KPIs) like CPU and memory consumption as well as network bandwidth.
  • Availability Management: Management of availability requires making sure that the IT services are accessible to satisfy the established service level standards. It entails organizing, creating, and preserving the accessibility of IT services.
  • Reporting on capacity: This entails producing and disseminating reports that give insight into the performance and capacity consumption of the IT infrastructure.
  • Capacity optimization: The goal of capacity optimization is to improve the performance and availability of the IT infrastructure by locating and eliminating any restrictions or bottlenecks.
  • Continuous Improvements: To address the changing needs of the organization, continuous improvement entails assessing the infrastructure, processes, and procedures

The processes of service level management, IT service continuity management and financial management for IT services are all strongly related to capacity management. This guarantees that any restrictions or bottlenecks in the infrastructure are recognized and fixed and that the IT infrastructure is designed, configured, and managed to suit the business's present and future demands.

Overall, capacity management is a crucial procedure in the ISO 20000  clause: 8.4 supply standard that aids IT firms in ensuring that their infrastructure can support the demand for IT services now and in the future while also maximizing the efficiency and accessibility of those services. The three main processes of ISO 20000, the international standard for IT service management, are service design, build, and transition.


In summary, the issue of ISO 20000 clause 8.4 supply and demand is complicated. The size and type of the company, the industry, the location, and the maturity of the ISO 20000 market are a few of the variables that affect the supply and demand of ISO 20000. Organizations must perform a thorough examination of their own unique circumstances to fully comprehend the problem.

ISO 20000 Clause:

ISO 20000 Templates