Business-IT alignment (BIA) is still a major IT management concern. Agile Software
Development (ASD) is becoming a commonly used method for IT development. An important
characteristic of this method is high involvement of business members in software development.
The potential benefits of the use of ASD on the business-IT alignment within organizations have
not yet been investigated. This paper addresses the question whether ASD can contribute to
business-IT alignment within organizations where software development is being done by the
organization itself. We identify the characteristics of agile software development by using an
Agile Maturity Model. Business-IT alignment is operationalized by using Luftman and
Kempaiah’s Business-IT Alignment Maturity Model. Our hypothesis is that the use of agile
software development will increase the BIA-indicators Governance, Communication,
‘Competence & Value Measurements’ and Partnership. The hypothesis is tested at a non-profit
organization in the Netherlands consisting of 600 employees. Our findings support the
hypothesis: Three of four BIA-indicators show considerable improvement where one BIAindicator is showing minor improvement. Further research is recommended at more
organizations, involving all BIA-indicators.