What is Cost Center

The complexity of business and competitive environment enforces organizations to adopt innovative ways for doing business. This drives a new trend of agile organizations that are adaptable to market and technology changes. As a result, 75% of organizations recognized agility as one of the key drivers for their IT strategies. As organizations start adopting digital transformation initiatives, they recognize the necessity to adapt agility in their IT departments as well. However, moving to an agile organization and an agile IT department is more complex than adapting an agile software. This chapter aims to provide an in-depth explanation of agile IT department specifying its features, roles, and differentiation elements from the traditional IT department. Emerging technologies that are crucial in the movement towards an agile IT department are also discussed with possible change management process to facilitate the transition of the agile IT department into profit center that is contracted to add value for the whole organization while working in a feasible partnership mode with the business.