Due to the Tremendous growth of information technology (IT), organizations are under intensivernpressure. Because organizations no longer compete solely based on financial capital and strength,rnrather IT is the new competitive advantage in business, and to cope with this pressure thernorganization needs to have effective and efficient IT Service Management. Unfortunately, havingrneffective IT Service Management and aligning IT service with business is a challenging task.rnAligning IT service with business is the weakest link in an organization. Because of this, attentionrnhas increased to align IT service practice with the business needs of the organization. It is thereforernvital that organizations have effective IT service management in place to ensure what they arernproviding does facilitate the outcomes their customers want to achieve and manage all of the costsrnand risks with those services.rnIn Ethiopia the business environment is changing rapidly, especially the number of banks joiningrnthe industry has been growing from time to time. This scenario enforces the banking industry tornprovide better service to gain a competitive advantage, which is achieved by improving IT servicernmanagement. However, due to various challenges IT service management contextual challengesrnare not explored largely in Ethiopia. Furthermore, studies in the past in the same area have notrnaddressed situations in Ethiopia banking.rnThus, the purpose of this study is to identify challenges related to current IT Service Managementrnpractices in the Bank of Abyssinia (BoA) and provide recommendations for improvement.rnA qualitative case study applying observation and interview methods has been used to conduct thisrnstudy. The interview instruments are developed based on three-dimension namely; process, people,rnand technology.rnThe study results reveal measurement, change management, interoperability, reporting, policy,rnand procedure are the challenges that hamper IT service Management practices in the BoA. It alsornshows a lack of skill, documented service guidelines, a Self-service portal, communication, andrncollaboration.