The acronym "ITSM" stands for Information Technology Service Management. It encompasses the entirety of services provided by an organization to manage and deliver IT services effectively to users and businesses. ITSM focuses on aligning IT services with the needs of the business through practices and processes such as incident management, change management, and service level management. By implementing ITSM frameworks like ITIL, organizations can improve service quality, enhance customer satisfaction, and optimize IT costs.