When should IT be the owner/sponsor of the project versus the business when it comes to applications / systems?

Ideally, IT should be a service provider and help the business owner achieve business goals using technology. Businesses should define their service expectations, and IT should be measured to deliver the quality of service that the business needs to achieve its goals. IT is held accountable in such organizations if the computing infrastructure fails to meet service objectives. This fosters investments that help IT ensure service availability.

However, most organizations attribute ownership to IT because the business teams feel a lack of control since they do not understand technology. In such organizations, it is very usual to blame IT for the failure of computing infrastructure without enabling investments into making IT work for business.

IT should be the owner/sponsor when the project focuses on technical infrastructure, scalability, or security, where specialized expertise is needed. Business should take the lead when the project aims to solve a specific business problem or targets customer needs, as they have the domain knowledge. The key is aligning goals and ensuring seamless collaboration between IT and business units for project success.

It is IT's responsibility to identify needs and innovate. Often IT are the only ones who understand both the problem and solution and should always be willing to own a project, especially when no one else steps up to the plate.