Efficient value creation and service delivery processes are considered as the key factor to competitiveness in a globalized market environment. This paper focuses on a specific aspect of business and IT alignment: the adaptation of business services to new business needs, i.e. the focus is on services offered to customers rather than on the enterprise IT as whole. The systematic management of the capabilities of an enterprise, which often are reflected in the business services offered to customers and the technical services associated to them, is emerging into a key activity for achieving efficiency. In order to facilitate capability management, we propose business service design explicitly considering delivery context by an approach that supports modeling both, the service as such and the application context. The main contributions of this paper are (a) the analysis of business & IT alignment needs in an industrial case of business process outsourcing introduction, (b) the concept of context-based business services as contribution to capability management, and (c) an example for context and business service models.