Assessing the Factors Influencing Information Technology Investment Decisions: A Survey of Sampled Public Sector Organizations in Tanzania

The rationale of this study was to respond to the popular belief that public sector organizations are less efficient and less effective regardless of being equipped with IT investments. The general purpose was to assess the factors which influence decisions on IT investments. While questionnaires were used to collect data from 21 sampled organizations, 'judgmental sampling' method was used in determining the sample size and the 'stated preference' method was used to evaluate the findings. The results of analysis showed that there are some degree of influence from both Business cases and IT business value. On the other hand, alignment was found to have no influence at all. Hence, the study recommends adopting or enhancing use of business cases. IT evaluation for alignment as well as IT governance for business value in public sectors to justify significant capital expenditures.