Not having read Murray's article, I should note that the article title is misleading in that presenting a case to a CEO to implement a framework that would "...significantly improve structure and quality across areas..." presents a compelling case all on it's own. Also, if you look at the ITIL v2 library - and not just the ITSM volumes - you will find the "Planning to Implement Service Management" book, that provides some guidance and samples in presenting a compelling case for ITSM.

As to whether ITIL reduces costs: no studies have been provided in the article that support this statement. The classic case of Johnson & Johnson, where - in 2005 - they saw "cost savings and avoidance" of more than $30 million from it's service improvement program expresses a counterpoint to the title of the article.