In a government organization with a number of distinct business units, unmanaged introduction and diffusion of Geographic Information Systems (GIS) may result in duplication of effort, and ill-feeling among stakeholders, particularly those with a vested interest in the use of information technology (IT) in general, and GIS in particular. This is probably a result of an increased competition for the limited IT budget or a potential redistribution of power as perceived by the stakeholders. Actually, both IT and GIS groups play a complementary role in the overall IT development of an organization. Based on a recent study of the development of GIS in several State Government agencies in Australia, this paper highlights the services provided by the IT and GIS groups respectively in meeting an organization’s IT requirements, both infrastructure and business process. In a government setting, the process of IT and GIS development for which four contingencies have been identified, is driven by the strategic needs of the organization. The management implications of bringing the organization forward from one contingency to another in the process are discussed.