Introduction Information systems and processes have brought about major technological influence to most organizations. In present business environment, most products and services activities revolve around IT systems.Embracing project portfolio management serves as anintegral aspectfor most organization in succeeding its goals. The importance of portfolio management is that, it promotes overall project progress, protects the projects during harsh economic times, and gives greater autonomy to organization’s executives in overseeing and locating redundancies, fixing resources and keeping an eye on project progress. This report will discuss the importance of portfolio project management. The reports will also explore the value and challenges of portfolio approach in managing IT projects. Project Portfolio Management As it may sound, project portfolio management entails collecting and controlling thefacets of IT investments as a unit of connected tasks in a single place (Levine, 2005, p.48). Besides providing a unified synopsis of all IT projects, portfolio makes it easier for organizations to understand their investments in terms of balance, size, risk involved and the projected payoff expected. When strategically executed, portfolio management surges IT value by divulging redundant or risky projects whereas uncovering how to sway resources from less valuable investment to value added projects. To cushion value in the outcome of project success, portfolio embraces different level of management. One of the levels is often in practice is the consolidating all projects in a single database. This level involves putting projects names, projected project costs, estimated project timeframe and assigning members tasks to be performed (Levine, 2005, p.89). Although, collection of these information may be seem tiresome, in the long run, it adds impressive yields such in terms of identifying redundancies in the long run. Consequently, prioritizing projects in a database ensures urgency is embraced. Projects in a database appear less distinct and symbiotic. Prioritizing projects in a database ensures effective risk analysis and simplifies management. The value of a portfolio approach to managing IT projects The value of portfolio management has significant value to businesses which embraces the concept (Levine, 2005, p.97). Though, it is linked to several advantages such as linking organizations concepts and policies with vital work flows, project data and business practices, individual benefits are common. These benefits includes; opportunities, benefits and process improvement Opportunities Portfolio approach creates opportunities in an organization. It helps organization to manage IT projects effectively thus encouraging maximization of business output. This is realized by closely reviewing the operational processes of the business in terms of cost reduction efficiency in service delivery levels, increased profits gains and quality of products. Thus, it simplifies the supervisory and management role of projects manager in resource allocation throughout the project cycle. Besides, portfolio approach assist organizations to achieveorganizations requirements, improve marketing capability, determine a