IT Management

The “IT Management function” is focused on managing “the business of the IT organization” within the company. This means there is a strong focus on the money involved, how people and resources are allocated to different parts of the organization, how the teams are managed, and how the overall IT functions and systems align with and support the organization.

Generally speaking, the IT organization is led by a Chief Information Officer, or someone with a similar title, who is responsible for the IT division and directs an IT leadership team.

For simplicity, we break IT Management into just two function layers: Internal IT Management and External IT Management. While much of what IT Management focuses on is internal to the business, managing an IT organization also involves using many “external components” and leveraging them for the organization’s benefit.

Internal IT Management refers to the strategic oversight and operational control of an organization’s technology systems, infrastructure, and services. The internal IT leadership team—often led by the Chief Information Officer (CIO)—is responsible for ensuring that technology supports business goals and functions efficiently across all departments.

This function includes managing core IT systems, setting policies, maintaining cybersecurity, and aligning IT initiatives with company objectives. It also involves optimizing resources such as staff, budgets, and tools to provide reliable service and drive innovation. Internal IT Management is not just about keeping systems running, but also about anticipating future needs and improving overall organizational performance through technology.

IT Strategy and Governance

Internal IT Management starts with strategy. The CIO and leadership team develop an IT roadmap that aligns technology goals with the overall business plan. This includes decisions about infrastructure investments, software platforms, cloud adoption, and modernization of legacy systems. Strategic planning helps the organization remain competitive and responsive to change.

Governance provides the framework for making these decisions. Policies and procedures are put in place to ensure consistent practices, regulatory compliance, and accountability. Tools like ServiceNow or Jira may be used to track initiatives, manage requests, and monitor service delivery across teams.

Infrastructure and Operations

An essential part of internal IT is managing the underlying infrastructure. This includes networks, servers, storage systems, and data centers—whether physical, virtual, or cloud-based. Operations teams ensure that these systems are available, secure, and scalable to meet organizational demands.

Monitoring tools such as Nagios, Splunk, or Microsoft System Center help IT teams detect issues quickly and keep services running smoothly. Automation platforms like Ansible or PowerShell scripts are often used to streamline repetitive tasks, improve efficiency, and reduce downtime.

Cybersecurity and Risk Management

Security is a top priority for any internal IT team. Cybersecurity management includes safeguarding systems against malware, unauthorized access, and data breaches. Common tools in this area include firewalls, intrusion detection systems (IDS), antivirus platforms, and endpoint protection solutions like CrowdStrike or SentinelOne.

Risk management also involves regular audits, vulnerability scans, and incident response planning. The CIO ensures there are policies in place for password strength, access control, and software patching. Training programs for employees help reduce risks related to phishing and social engineering.

Service Delivery and End-User Support

Internal IT teams are responsible for delivering reliable and user-friendly services. This includes managing service desks, responding to support tickets, and ensuring that employees have the technology tools they need. ITIL (Information Technology Infrastructure Library) practices often guide how services are organized and delivered.

Ticketing systems like Freshservice, Zendesk, or BMC Remedy help IT teams manage support requests, prioritize issues, and measure response times. Internal IT also supports collaboration tools such as Microsoft 365, Zoom, and Slack to enable productivity across departments.

Talent and Resource Management

Managing the IT workforce is another critical function. The CIO must ensure the right mix of skills and roles—such as network engineers, system administrators, and software developers—are available to meet the organization’s goals. This includes hiring, training, and ongoing performance evaluation.

Resource planning tools and project management platforms like Smartsheet or Microsoft Project assist in assigning tasks, balancing workloads, and tracking progress. Internal IT leadership also manages budgets and vendor licenses for tools and services used across the organization.

Summary

Internal IT Management plays a central role in the success of modern organizations. By aligning technology with business strategy, maintaining reliable systems, securing data, supporting users, and managing skilled staff, IT leaders ensure that technology acts as a foundation for growth and operational excellence.

External IT Management refers to the oversight and coordination of services, systems, and partnerships that come from outside the internal IT team. It focuses on managing third-party relationships, sourcing strategies, and external technology services needed to support business goals.

This area of IT leadership plays a key role in controlling costs, ensuring service quality, and maintaining system security when working with external partners. It includes activities like vendor management, technology procurement, cloud service agreements, and support contracts. As technology needs grow more complex, CIOs and IT leaders must align external services with internal goals while managing risks, compliance, and evolving service models.

Vendor Management

Vendor management involves selecting, negotiating with, and overseeing third-party technology providers. These vendors may supply software, hardware, consulting, or infrastructure services that are critical to IT operations. A strong vendor management strategy ensures that vendors meet performance expectations, provide value, and comply with company policies and data security standards.

Many IT teams use tools like ServiceNow Vendor Risk Management or SAP Ariba to track vendor performance, monitor compliance, and manage contracts. CIOs often lead regular review cycles to assess vendor reliability, budget alignment, and service delivery. Clear service-level agreements (SLAs) help hold vendors accountable and define how success is measured.

Technology Procurement

Technology procurement refers to the process of acquiring external IT products or services. This includes identifying requirements, evaluating products, negotiating contracts, and managing supplier relationships. Procurement is not just about finding the lowest price; it’s about selecting technology that meets long-term goals and integrates well with internal systems.

IT leaders often work with procurement teams to implement tools like Oracle Procurement Cloud or Coupa to automate purchasing workflows and track spending. Careful planning helps prevent vendor lock-in and ensures that solutions remain scalable and secure. Licensing models, subscription fees, and hardware lifecycles must be considered during each purchase decision.

Cloud and Managed Services

Cloud and managed services are an essential part of external IT management, allowing organizations to outsource infrastructure, applications, or technical support. These services reduce the need for physical hardware and on-site resources while offering flexibility and scalability. Examples include platforms like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud.

IT leadership must ensure that service providers meet technical, operational, and security requirements. This includes data protection, uptime guarantees, and regulatory compliance. Tools such as cloud management platforms and third-party monitoring solutions help track resource usage, control costs, and maintain visibility over externally hosted systems.

Contract and Compliance Oversight

Managing external IT relationships requires ongoing oversight of legal, financial, and regulatory obligations. Contracts must clearly define responsibilities, timelines, penalties, and intellectual property rights. Compliance oversight ensures that vendors follow industry standards such as GDPR, HIPAA, or ISO 27001, depending on the business context.

IT leaders work closely with legal and compliance teams to reduce risk when working with external providers. Platforms like DocuSign CLM or Ironclad may be used to store and track digital contracts. Regular audits, vendor self-assessments, and third-party risk evaluations help verify that external relationships remain secure and reliable.

Strategic Alignment with Business Goals

External IT services must support the broader business strategy. CIOs and IT managers assess how well third-party offerings contribute to growth, innovation, and operational efficiency. This may involve working with strategic partners for research and development, digital transformation, or emerging technologies like artificial intelligence and machine learning.

Tools such as IT portfolio management systems (e.g., Planview or Clarity PPM) allow leaders to align external investments with business priorities. External IT management becomes a collaborative process that connects procurement, finance, operations, and the C-suite to ensure that outside services drive measurable business value.

Summary

External IT management is a critical part of modern IT leadership. It involves managing partnerships, services, and systems that come from outside the organization but are essential to technology success. From vendors to cloud services, each external element must be evaluated, monitored, and aligned with strategic goals. With the right tools and processes, IT leaders can turn external resources into powerful assets that support both innovation and stability.

Splitting the IT Management function into two layers with an Internal and External focus provides an intuitive and practical breakdown.

It lets you quickly recognize where things fit and what their focus is for the IT organization.