IT portfolio management is the subject of managing IT investments. It involves the establishing of a formalized process for gauging and monitoring the worth of IT investments, making decisions scientifically and creating frameworks as outlined by the IT governance board. More and more companies are adopting IT portfolio management to increase productivity. An efficient IT portfolio management system helps in aligning technology investments with a good business strategy. It maximizes the value of IT investments by introducing the right processes and practices at the right time. Also, IT portfolio management helps in assessing costs and risks. Researches have shown that the general efficiency level of a company goes up and productivity increases as a result of IT portfolio management.

Studies indicate that majority of senior IT executives are aware of the benefits of IT portfolio management. However, many of them fail at the implementation stage. Very few companies are actually able to derive maximum value from IT investments. IT executives often find it a tough job to change the attitude and behavior of employees. For this reason, the implementation of IT portfolio management proves to be a nightmarish job.

IT companies themselves adopt IT portfolio management so that they can accept only those projects that can be executed in an efficient manner. The projects are analyzed for their risks and balanced accordingly for maximum returns. Only projects that can be executed within the company's capacity and resources are actually accepted. By implementing IT portfolio management, a company ensures that its projects perform well in real world conditions. Lots of companies that struggled with unmanageable projects in the past are now able to do projects better, thanks to IT portfolio management. They now accept projects that are of manageable size and complexity only.