Why did companies choose to decentralize IT resources in the 1980s?

During the 1980s, many companies opted for the decentralization of IT resources primarily to enhance efficiency and empower local decision-making. This shift allowed departments and individual business units to have greater control over their IT resources, making it easier to tailor technology solutions to specific operational needs. By decentralizing IT, organizations could respond more quickly to local demands, improve the alignment of IT systems with department-specific goals, and facilitate faster decision-making processes.

This approach leveraged the growing trend of personal computing, which enabled local users to manage their data and applications without relying on a centralized IT department constantly. The empowerment of local units not only improved response times but also fostered innovation as departments experimented with different technologies suited to their unique challenges.

While advancements in technology and cost reduction were indeed factors influencing IT decisions during that era, the primary driver for decentralization was centered around improving efficiency and fostering local decision-making. Hence, the choice highlighting the enhancement of efficiency and local decision-making captures the essence of why many companies pursued decentralization in their IT strategies during the 1980s.