Abstract

After an extensive review of the available literature, it is evident that within the Information Systems and Technology (IT) field, project managers are still debating whether to centralize or decentralize IT systems and services personnel. This decision can have a major impact on the effectiveness of the project management process with both organizational structures having advantages and disadvantages. The study examines two real-world examples of projects in the aerospace and defense technology industry that were performed from either a centralized or decentralized organizational structure. Using an industry standard project management methodology (i.e., Agile and Scrum), the study clearly identified the advantages and disadvantages of each organizational structure. A centralized organizational structure can reduce costs at the expense of meeting all the customer’s needs, while a decentralized organizational structure meets all the customer’s needs, it risks significant time delays and cost overruns. Based on the study’s findings, a hybrid approach to organizational structure is proposed incorporating the advantages of both centralized and decentralized organizational structures while lessening their noted disadvantages. Future research should also explore the viability of applying a hybrid approach to organizational structure across different industries.