The best Enterprise Service Management (ESM) tools in 2025

The Best ESM Tools for 2025—Because Your Future Workflow Depends on It

Ever watched a busy restaurant kitchen during the dinner rush? Orders flying in, chefs coordinating, servers moving plates. It’s a beautiful dance when everything works. But throw in a broken ticket system or miscommunication, and suddenly you’ve got chaos.

Your business workflows aren’t so different. When they’re disjointed, everybody suffers. ESM tools are crucial in 2025 because they optimize operations and deliver significant business value by connecting various elements to achieve competitive advantages quickly. Let me show you which ones actually work.

Your Workflows Are Probably a Mess (And It's Costing You)

Let’s be honest: most companies run on digital duct tape.

HR is buried in spreadsheets that would make Excel developers weep. Your IT team uses a ticketing system so old it probably ran on Windows Vista originally. And Finance? Their approval process has more loops than a rollercoaster at Six Flags. These manual processes hinder immediate access to essential services, urging businesses to innovate and integrate automated systems for a streamlined service experience across various departments.

It’s no wonder Gallup reports that 59% of employees are not engaged, and 18% are actively disengaged. These fractured workflows directly contribute to diminished productivity and higher turnover rates.

When a new hire joins, watch the domino effect:

• HR completes their paperwork but forgets to notify IT
• IT discovers they need a laptop… three days later
• Facilities learns about desk needs when the employee is already standing in the lobby
• Finance hasn’t approved software licenses yet
• Result? Your $100K new hire spends their first week twiddling their thumbs

This isn’t theoretical. Companies with well-organized onboarding improve new hire retention by 82% and productivity by over 70%. When processes break down, that advantage evaporates.

A Gartner study found onboarding inefficiencies alone cost companies between 1-2.5% of total revenue annually. For a $50 million company, that’s up to $1.25 million evaporating yearly.

The problem gets worse at scale. A director at a Fortune 500 manufacturer told me recently: “We calculated that our approval processes alone, across departments, were costing us 11,500 person-hours quarterly. That’s nearly six full-time employees doing nothing but waiting for green lights.”

Project management can also benefit from a streamlined service model to enhance efficiency and decision-making within the organization.

Enterprise Service Management Explained (Without the Jargon)

Think of Enterprise Service Management like this: it’s taking everything that made IT help desks actually work, tickets, automated workflows, self-service, and applying it to every department. By leveraging core ITSM capabilities, ESM enhances business operations through improved digital workflows and various digital-work-enabling features.

Imagine if requesting HR benefits was as easy as ordering an Uber. Or if getting budget approval was as straightforward as one-click shopping on Amazon. That’s what ESM brings to the table. ITSM tools serve as a foundation for implementing a broader ESM strategy, making the transition simpler for companies already using effective ITSM solutions.

The ESM market isn’t just growing—it’s exploding. Projected to reach $12.8 billion by the end of 2025, the sector maintains a sustained Compound Annual Growth Rate (CAGR) of 18-20%, making it one of the fastest-growing enterprise software categories.

In a large healthcare network that recently adopted an enterprise service management platform, nurses went from spending 42 minutes a day on administrative tasks across disconnected systems to just 12 minutes. That’s a 30-minute daily gain per nurse—time now spent on patient care instead of paperwork.

When you multiply that across their 2,300 nurses, that’s 1,150 hours daily redirected to patient care instead of administrative busywork. In healthcare terms, that’s roughly 230 additional patients who can be seen each day.

ESM is more about efficiency, it reclaims time for the work that actually matters to your business.

Why 2025 Is the ESM Tipping Point

Three major shifts make ESM non-negotiable now:

1. Your hybrid workforce expects consumer-grade experiences When 76% of employees can get better digital experiences from their DoorDash app than their workplace tools, you’ve got a problem. Gen Z employees, now representing 27% of the workforce, abandon clunky internal processes at 3x the rate of older counterparts. “We lost three promising junior developers in six months,” confessed the CTO of a midsize fintech. “During exit interviews, all three mentioned our byzantine internal processes as a major factor. One said she spent more time filing tickets than writing code.”
2. AI has transformed what’s possible  In ESM, AI isn’t here to replace people—it’s here to make their jobs easier. Xurrent’s AI capabilities are designed to reduce repetitive tasks, improve accuracy, and save time—without compromising oversight. ESM benefits the entire enterprise by improving operations across all departments.

Some of the most impactful features include:

• AI-powered virtual agents to initiate and route requests
• AI-generated request summaries that reduce reading and triage time
• Auto-classification and auto-translation for faster, more accurate handling
• AI knowledge article creation and follow-up summaries that reduce the burden on support teams

All of this runs within a secure, explainable framework built on AWS Bedrock. Xurrent does not use your data to train external models, ensuring privacy at every level. In an era where 84% of IT leaders are investing in AI to drive efficiency, platforms like Xurrent stand out by delivering actionable automation that teams can trust. 3. Operational inefficiency kills in economic uncertainty Companies that streamlined workflows through ESM during the 2023 tech slowdown were 34% more likely to maintain profitability, according to McKinsey’s Service Excellence report. Westland Manufacturing provides a telling case study. When facing a 15% budget reduction in 2023, they didn’t slash headcount—instead, they invested in ESM to eliminate process waste and accelerate business growth. The result? They maintained output with 9% fewer staff hours and actually improved customer satisfaction by 12 points.

The Automation Opportunity You're Missing

Let’s talk specifics about where ESM creates immediate value. A ServiceNow study of mid-market companies found these processes had the highest ROI when automated through ESM:

1. Employee onboarding/offboarding: Average savings of 28.5 hours per employee lifecycle
2. Purchase approvals: 74% reduction in processing time
3. Access management: 91% decrease in security-related incidents
4. Facilities requests: 63% increase in first-time resolution rates
5. IT incident resolution: 42% faster mean time to resolution

The beauty of modern ESM platforms is that automation isn’t just for technical teams anymore. Other business functions can leverage ESM to enhance operational efficiency and improve employee experiences. "Implementing Xurrent's ESM solution has transformed our HR operations. We've automated onboarding processes, streamlined employee requests, and enhanced our self-service portals—all without the need for extensive coding or external consultants. This shift has not only improved our efficiency but also elevated the employee experience across the board."

However, the complexities and challenges of ESM implementation should not be underestimated. Successful deployment requires choosing the right tools, cultural and leadership support, and organizational buy-in and adaptation.

The 2025 ESM Shopping List: What Actually Matters

Before dropping six figures on an ESM platform, ask these questions:

• Does it connect HR, IT, AND Finance workflows out of the box? (If not, you’re buying another silo)
• Is AI built-in or an expensive add-on? (40% of vendors still charge premium for basic automation)
• What’s the ACTUAL implementation timeline? (Industry average: 4.7 months. Best-in-class: Under 8 weeks)
• Can non-technical teams build their own workflows? (If only developers can configure it, adoption will tank)
• What’s the real cost over 3 years? (Include implementation, training, integration costs)
• How are service level agreements defined and managed? (SLAs are crucial for setting service expectations and managing day-to-day IT operations)

A financial services client told me recently: “We chose the cheapest option and ended up spending 3x on consultants just to make departments talk to each other. Learn from our mistake.”

It's also important to integrate workflows across various business departments to enhance efficiency and break down silos, improving overall customer experiences.

The self-service component is particularly crucial. In organizations with robust ESM implementations, self-service resolution rates average 67% compared to just 24% in companies using traditional ticketing systems. Each percentage point increase in self-service adoption typically reduces operating costs by 1.2%.

The 2025 ESM Showdown: What Works for Whom

1. Xurrent

Perfect if: You prioritize security and AI-driven automation

The newcomer making waves, especially in regulated industries. This AI-powered platform brings together ITSM, ESM, and ITOM capabilities with an emphasis on secure cross-organizational collaboration.

The killer feature: Xurrent’s “Trust System” for multi-org collaboration lets service providers and clients work in the same instance while maintaining data boundaries—crucial for managed service providers. With our recent security enhancements including BYOK encryption and C5 attestation (February 2025), we’ve positioned ourselves as a leader for security-conscious organizations.

What sets us apart: Xurrent’s implementation philosophy focuses on providing significant out-of-box functionality with just enough customization options to support specific use cases. This balanced approach enables implementations in as little as 4 weeks—dramatically faster than industry averages.

Reality check: Being a newer brand means fewer pre-built integrations than established players, though our extensibility focus is helping close this gap.

Price: Tiered licensing focused on low total cost of ownership

Success story: SSP Group, a global food and beverage operator, deployed Xurrent across its operations—including IT and other internal support functions—serving over 5,000 users. By leveraging Xurrent’s multi-tenant architecture, supplier integrations, and self-service knowledge base, they achieved a 40% self-service adoption rate and significantly reduced reliance on first-line support. Automation features helped route requests directly to the right team, improving fix rates and SLA visibility, while streamlining collaboration across internal and external service providers. Xurrent’s robust service management capabilities have been instrumental in enhancing operational efficiency and employee experiences, supporting SSP Group's digital transformation initiatives.

2. ServiceNow

Perfect if: You’re a Fortune 1000 with complex needs and budget to match

Like the Swiss Army knife of ESM—it does everything if you have the patience and resources. When Accenture implemented ServiceNow across 30 departments, they reduced service resolution times by 46% over 18 months, showcasing the tool's role in driving digital transformation and improving operational capabilities.

Reality check: Implementation typically takes 6-8 months and costs can easily reach seven figures. One director described it as “buying a Ferrari when you might only need a Toyota.”

Price: Typically $100-250 per user monthly, plus implementation

Success story: Global insurance provider Allianz used ServiceNow to consolidate 62 separate ticketing systems into one unified platform. In year one, they processed over 2.3 million service requests with 99.8% uptime and reduced resolution times by 41%.

3. Freshservice: A Service Management Tool

Perfect if: You’re a mid-sized company (250-2,500 employees) needing fast results

Boasting a 75% faster implementation than legacy competitors, Freshservice has carved out the sweet spot between functionality and usability. When Trimble Navigation switched, their self-service adoption jumped from 31% to 74% in just one quarter, leading to better service delivery and improved service outcomes.

Reality check: While robust for basic needs, highly regulated industries may find compliance features less comprehensive than enterprise alternatives.

Price: $29-$109 per agent monthly

Success story: Marketing agency Havas Media rolled out Freshservice to manage both internal operations and client service workflows. They achieved 87% first-call resolution (up from 56%) and reduced average handle time by 4.2 minutes per interaction.

4. Jira Service Management

Perfect if: You’re already using Atlassian tools and have tech-savvy teams

Software companies love this option because it integrates seamlessly with development workflows. Spotify’s internal services team processes 15,000+ requests monthly through JSM with 92% satisfaction rates. Additionally, JSM leverages knowledge management to enhance service delivery, ensuring uniformity and efficiency in managing requests across various departments.

Reality check: Non-technical users find the interface challenging, with training requirements 2.5x higher than more intuitive alternatives.

Price: $21-$55 per agent monthly

Success story: SaaS company Datadog unified their development and operations workflows through JSM, achieving what they call “request-to-deployment synchronicity.” Changes requested by customers now move from ticket to production 58% faster than their previous siloed approach.

5. ManageEngine ServiceDesk Plus

Perfect if: You’re budget-conscious but only need core functionality

The Toyota Corolla of ESM tools—reliable, gets the job done, won’t break the bank. A manufacturing client with 150 employees slashed IT response times by 62% while staying under $25K all-in for year one. The tool's impact on service management is significant, particularly in fostering continual improvement. By integrating with other activities and frameworks, it ensures that service delivery evolves to meet changing demands and maintain value across various organizational functions.

Reality check: The interface feels dated, and advanced automation requires more technical setup than competitors.

Price: From $10 per technician monthly

Success story: Community college system with 3 campuses consolidated help desk operations across IT, facilities, and student services. They processed 28,000+ tickets in their first year with 94% meeting SLA targets—all with a team of just 6 agents.

What Enterprise App Management Service Means (In Plain English)

You’ll hear this term alongside ESM. Here’s what it actually means: ensuring the right people have the right access to the right apps, securely.

Think of it this way: ESM handles the “how” of service delivery, while Enterprise App Management handles the “what” people can access. The best ESM platforms either include this functionality or integrate seamlessly with tools like Okta or Microsoft Entra ID. These platforms act as a comprehensive service management tool, evolving from tactical applications to strategic uses across different business functions, enhancing operational efficiency, reducing costs, and improving employee experiences.

At Brooksfield Insurance, implementing this dual approach reduced access-related tickets by 63% and virtually eliminated security incidents from improper permissions. Their security team leader put it succinctly: “We used to spend Fridays hunting down who shouldn’t have access to what. Now we spend Fridays actually improving our security posture.”

This integration becomes critical during employee transitions. When someone changes roles or leaves, an integrated ESM/app management solution ensures access changes happen automatically, without the manual checklist that inevitably gets missed.

The Bottom Line: Flow Creates Performance

Here’s what all this really means for your business:

When Fiskars Group rolled out Xurrent across 29 countries, they transformed how 5,000+ employees handled service requests. What once required multiple tools, external consultants, and English-only interfaces now happens in one place—with native language support, faster response times, and over 3,000 automated workflows live within six months. The result? 96% user satisfaction, projected 41% cost savings over five years, and clear business outcomes that drive organizational success.

The magic happens when your internal operations feel as seamless as your customer experience. When an employee can request a laptop, file a risk assessment, or submit approvals without toggling between platforms or chasing emails—that’s when real productivity kicks in.

Understanding the key factors influencing ESM adoption, such as process optimization and employee productivity enhancement, is crucial for leveraging these systems effectively.

In 2025, streamlined internal operations aren’t a “nice to have”—they’re the difference between keeping pace and falling behind.

As Fiskars IT leader Mike says:

“We went live on a Tuesday at 9 am UK time, and by the time I got in at 10 am UK time, there was no feedback. I was thinking, what is going on? By the end of the day, we had no complaints; it just ran, it was that good, so we’re really happy with it. Over 5,000 happy people all at the same time.”

What could your teams accomplish with that kind of clarity and control?

Making Your Next Move: Practical Steps

If you’re convinced you need to upgrade your ESM approach (and by now, you should be), here are three concrete next steps:

1. Start with process mapping, not vendor demos. Document your three most painful cross-department workflows. Where are the bottlenecks? What causes the most employee frustration? Let these pain points guide your requirements.
2. Calculate the hidden costs of your current approach. For one week, have teams track time spent on administrative tasks, approval processes, and finding information. Multiply by average salary cost. The numbers will likely shock you—and build the business case for change.
3. Begin with a targeted pilot. The most successful ESM implementations start with a high-visibility, high-impact process (usually employee onboarding or IT service requests). Build momentum with an early win before expanding.

Remember: the best ESM tool isn’t necessarily the one with the most features—it’s the one your teams will actually embrace and use daily. Choose accordingly, and watch your operational friction melt away.

Conclusion: The ESM Investment That Pays Off Daily

The ESM market’s explosive growth—reaching $12.8 billion by the end of 2025 with a sustained 18-20% CAGR—isn’t happening by accident. It reflects the critical nature of streamlined service management in today’s business environment.

With 59% of employees disengaged and modern enterprises increasingly dependent on digital workflows, the battleground for talent and operational excellence is increasingly being fought on the quality of internal processes.

The combination of AI capabilities (where 84% of IT leaders plan to invest) and robust workflow automation creates unprecedented opportunities to transform how work gets done across your organization.

Whether you choose an enterprise platform like ServiceNow or a mid-market solution like Xurrent, the important thing is to start the journey toward unified service management now.

Because in 2025 and beyond, your competitors aren’t just competing on products and prices—they’re competing on operational excellence. And that excellence begins with how effectively your teams can work together. Adopting a strategic approach to ESM not only improves operational efficiency but also enhances employee experiences and enables distributed work, creating value across the organization.

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