IT service providers need a systematic problem management model to handle problems in IT services effectively. However, many IT organizations have difficulties in establishing a problem management model that is suitable for a service-oriented business. This is due to complex IT service management standards that include a large number of new concepts, which partly overlap whith those of traditional software engineering. In this paper, we propose a conceptual model which clarifies the concepts within IT service problem management, and connects these concepts to traditional software engineering tasks, such as testing and defect management. A design pattern is used to document our model. This study has been carried out in co-operation with IT companies and their customers in the electricity domain in Finland.