It's not hard to find a variety of diagrams purporting to illustrate how the myriad management functions in ITIL fit together. You'll see lots of silos with names beginning with "Service..." this and that (because, in a massive injection of double-speak, IT likes to describe itself as a service rather than what it really is: a racket).
Here's a typical example: http://www.itsm.hr/brosure/ITSM_CHART_V2.0.pdf
I dare you to find an appropriate place in this diagram to place your dev team. Pity the poor CIO: not only does he/she have to decide whether to buy or build but the build option comes with strings such as also having to invent a management process to go with it!
So, again, most "Service Design" managers don't bother: they just hire the nearest TOGAF-certified architect team and hand over all development to them.
It's hardly surprising that corporate dev team managers often find themselves in the role of "supplier", on the outside looking in. No-one with ambitions in the organisation wants the job and anyone who ends up in there has probably done something wrong or emerged as a natural also-ran in previous political games.
What this means to devs (particularly) and some testers (depending on which box they live in) is this: They Are (so) Fscked.
I saw my role become disenfranchised over the course of 6 years as a result of a regime change which imposed ITIL upon us. I avoided suicide by jumping into the contractor market and, through nothing more than sheer luck, have found myself working for a small autonomous team looking after an important business function (worldwide royalty payments). My boss has a rebellious streak which I strongly identify with and she also has sufficient career capital to keep her team identity intact.
I'd like to leave IT and do something which delivers more personal self-worth (pimp or drug dealer at a minimum; international arms dealer if I just can't do without the Bond lifestyle) but I need to clear some capital debts first so it's contracting for the next 5 years or so. Beyond that? I'm just hoping there's still a world left to walk out into.