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IT Organization (information technology organization)

What is an IT Organization (information technology organization)?

The department or function within an organization responsible for identifying, building, deploying, and maintaining IT services (information technology services) is called the IT Department or IT organization (information technology organization).

Governance Structure of IT Organization

The manager of this IT department or IT organization carries the title of "IT Manager" or "CIO" and reports to the CFO or COO or the CEO. Recent trend is for the CIO to report to the CEO and have a seat on the Board of Directors.

Purpose of IT Organizations

An IT Organization exists to enable the other business functions within the organization. It collaborates with these functions to create a strategy for the use of information technology in support of business goals and requirements. This IT strategy or strategic plan for IT identifies the vision, mission, goals, objectives and an implementation plan for the IT department/function/organization.

Centralized and Decentralized IT Organization Design

In a small company, there is usually one IT organization. However, in large enterprises, IT Organizations are often split into multiple organizations, each aligned with a division of the company. The former is an example of a centralized IT Organization while the latter, a decentralized IT Organization design.


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