Are we able to change the names of the work categories in Jira Service management or are we only able to use service, incidents, problems, change, etc. Can we either rename these or make new ones?
Currently no you cannot make new ones or change them. The work categories are ultimately tied to set's of functionality/behaviors that you can turn on and off within a project, and are effectively bundled along the lines of the style of ITSM work that will be being done and provides a ITSM style starting point for each of the categories.
Now....you can through request types/issue types effectively categorize them if that is what you are looking for. Also labels/etc would all be possible.
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