This paper identifies critical success factors of Business-managed IT based on case study results. Four groups of critical success factors emerge: (1) general approach to Business-managed IT/Business-managed IT strategy, (2) Business-managed IT project prerequisites/Business-managed IT team, (3) Business-managed IT project execution and outcome, and (4) information technology management for Business-managed IT. The results suggest that bilateral responsibility between the business unit and the IT organization is the most favorable governance option for Business-managed IT.