IT productivity is a reference to the relationship between an organization's technology investments and its corresponding efficiency gains, or return on investment.
With capital and labor often being scarce resources, it's important to maximize their impact as a driving factor in IT productivity. Data that reflects IT productivity can be measured and quantified to identify where IT systems exert their greatest leverage; that data is then directly linked to an organization's resulting profits. The CIO is generally responsible for determining and promoting the business value of the IT department, pushing for improvements and boosting IT productivity.
IT productivity should enhance an organization's growth and promote economic well-being. Investments that can contribute to IT productivity gains include hardware, software and expansion of the labor force.