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 u26 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 BIA-indicator is showing minor improvement. Further research is recommended at more organizations, involving all BIA-indicators.
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