The acronym ITIL stands for Information Technology Infrastructure Library, which is a framework for IT service management. It focuses on aligning IT services with the needs of the business, promoting best practices for managing and delivering quality IT services. ITIL encompasses various processes, including incident management, change management, and service level management. By utilizing ITIL principles, organizations can improve service delivery, enhance customer satisfaction, and optimize the efficiency of IT operations, ultimately leading to better overall performance and value.