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Org structure

How an IT services company is structured

A mid-sized Indian IT services company, say 600 people in Pune or Hyderabad, is organized around delivery. The CEO sits above a few function heads. Most staff sit inside delivery, grouped into practices like Java, cloud or testing, then into project teams for each client. Sales, engineering, HR and finance support delivery from the side. Reporting is by project, so an engineer answers to a team lead on daily work and to a project manager on the account.

Org chart

CEODelivery Headholds most staffProject ManagerTeam Lead5 to 8 engineersQA LeadBusiness AnalystDelivery ManagerTeam LeadEngineering HeadSolution ArchitectDevOps LeadSales HeadBusiness DevelopmentManagerPre-Sales ConsultantHR HeadHR Business PartnerTalent AcquisitionLeadFinance HeadFinance Manager

Read from the CEO down. The delivery branch is shown in full because it carries most of the staff; sales, engineering, HR and finance are drawn one level deep to keep the chart readable.

Levels and designations

LevelTypical designationsSpan of control
L1 LeadershipCEO, Managing Director5 to 7 function heads
L2 Function headsDelivery Head, Engineering Head, Sales Head, HR Head, Finance Head3 to 6 managers
L3 ManagersProject Manager, Delivery Manager, Solution Architect4 to 8 reports
L4 LeadsTeam Lead, QA Lead, DevOps Lead5 to 10 engineers
L5 EngineersSoftware Engineer, QA Engineer, Business Analystno direct reports

Approval chains

RequestApproval chain
LeaveSoftware Engineer → Team Lead → HR Business Partner
Attendance correctionQA Engineer → Team Lead → HR Business Partner
OvertimeSoftware Engineer → Delivery Manager → HR Business Partner
ReimbursementSoftware Engineer → Project Manager → Finance Manager
HiringProject Manager → Delivery Head → HR Head

How the structure works

Work flows through projects, not departments. When the company wins a client account, a project manager is given a team drawn from the delivery practices. A team lead runs the day to day, checks code and unblocks people. The project manager owns scope, timeline and the client relationship, and reports to a delivery head who carries a portfolio of accounts. Engineering keeps the architects and DevOps who set standards across projects. Because one engineer can move between projects in a year, the reporting manager on record is usually the team lead of the current project.

How it changes with size

At 50 people the founder often doubles as delivery head, and two or three team leads cover every client. HR is one generalist. At 500 people you see clear practices, a project management office, and a delivery head for each major client group. HR splits into recruitment and operations. At 5,000 people the company runs business units by industry or geography, each with its own delivery, pre-sales and support, while shared engineering, HR and finance run as central functions with business partners embedded in the units.

Common problems

The usual pain is dual reporting. An engineer on two projects gets leave and appraisal signals from two managers, and neither owns the person. Bench management is another: when a project ends, people sit idle until the next account starts, and no one is clearly accountable for them. Titles inflate fast in IT, so a team lead at one firm may manage more people than a manager at another. Fixing this needs a single reporting manager of record for each person, and a clear rule for who approves leave when someone is shared.

Set up this structure in ZeniaHR

  1. Create departments for Delivery, Engineering, Sales, HR and Finance, then add designations like Software Engineer, Team Lead, Project Manager and Delivery Head under Organization masters.
  2. Set up grades separate from designations so pay bands stay stable even when titles differ across projects and practices.
  3. Give every employee one reporting manager, usually the current team lead, and an HR partner, so leave and corrections route to the right person.
  4. Use the org chart to check for broken reporting lines when people move between projects, and fix any employee left without a manager.
  5. Set attendance rules per shift, then map overtime to comp-off for delivery staff who work weekends near a release.
  6. Add project managers and finance managers as approvers for reimbursement and hiring, keeping leave and attendance on the reporting manager then HR route.

See it on your own data

A 30-minute demo on a video call. We set up your departments, shifts and leave rules and show attendance, leave and payroll running for your team. Free for your first 50 employees.

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Frequently asked questions

What is the org structure of an IT company?

Most Indian IT services companies use a project based structure on top of functions. The CEO leads a few function heads. Delivery holds the bulk of staff, split into practices and then into client project teams. Each engineer reports to a team lead, who reports to a project manager and delivery head. Sales, engineering, HR and finance support delivery.

Who approves leave in an IT company?

In practice, and in ZeniaHR, leave goes to the employee's reporting manager first, which is usually the team lead on the current project, and then to HR. The project manager may be consulted when the request clashes with a release, but the recorded approval follows the reporting manager then HR route. The company head can decide any step when needed.

How many levels does an IT company have?

A mid-sized IT company usually runs four to five levels: engineers, team leads, project or delivery managers, function heads, and the CEO. Small firms collapse this to three. Large firms add a business unit head between delivery heads and the CEO. Titles vary between companies, so compare the grade and span of control rather than the label.