The relationship between information technology (IT) and productivity remains a topic of debate, with significant research yet to fully resolve the paradox. Despite a dramatic increase in computing power since 1970, productivity, especially in the service sector, has stagnated. This paradox has led to extensive research, but findings remain inconclusive. Nobel laureate Robert Solow noted that computers are everywhere except in productivity statistics, highlighting the challenge of measuring IT's impact. The paradox is attributed to both measurement issues and mismanagement. Research indicates that IT productivity is often underestimated due to flawed measurement methods, not because IT is inherently unproductive. Recent studies suggest that IT spending may yield higher returns than previously thought. The productivity paradox is further complicated by the fact that IT's benefits may take time to materialize, and its impact on productivity is often indirect. Key factors contributing to the paradox include measurement errors, lags in IT benefits, redistribution of gains, and mismanagement. Measurement errors arise from the difficulty in accurately assessing output and input in IT-intensive industries. Lags mean that the benefits of IT may not be immediately visible, requiring time for organizational adaptation. Redistribution suggests that IT may benefit certain firms at the expense of others, while mismanagement indicates that IT investments may not be optimally utilized. Despite these challenges, some studies indicate that IT can significantly boost productivity, particularly in specific areas like transaction processing. However, the overall impact remains unclear. The article emphasizes the need for better measurement techniques and a deeper understanding of IT's role in productivity. It concludes that while IT has the potential to drive productivity gains, the current paradox is largely due to measurement and methodological limitations rather than a fundamental flaw in IT itself. The research highlights the importance of addressing these issues to fully realize the potential of IT in enhancing productivity.The relationship between information technology (IT) and productivity remains a topic of debate, with significant research yet to fully resolve the paradox. Despite a dramatic increase in computing power since 1970, productivity, especially in the service sector, has stagnated. This paradox has led to extensive research, but findings remain inconclusive. Nobel laureate Robert Solow noted that computers are everywhere except in productivity statistics, highlighting the challenge of measuring IT's impact. The paradox is attributed to both measurement issues and mismanagement. Research indicates that IT productivity is often underestimated due to flawed measurement methods, not because IT is inherently unproductive. Recent studies suggest that IT spending may yield higher returns than previously thought. The productivity paradox is further complicated by the fact that IT's benefits may take time to materialize, and its impact on productivity is often indirect. Key factors contributing to the paradox include measurement errors, lags in IT benefits, redistribution of gains, and mismanagement. Measurement errors arise from the difficulty in accurately assessing output and input in IT-intensive industries. Lags mean that the benefits of IT may not be immediately visible, requiring time for organizational adaptation. Redistribution suggests that IT may benefit certain firms at the expense of others, while mismanagement indicates that IT investments may not be optimally utilized. Despite these challenges, some studies indicate that IT can significantly boost productivity, particularly in specific areas like transaction processing. However, the overall impact remains unclear. The article emphasizes the need for better measurement techniques and a deeper understanding of IT's role in productivity. It concludes that while IT has the potential to drive productivity gains, the current paradox is largely due to measurement and methodological limitations rather than a fundamental flaw in IT itself. The research highlights the importance of addressing these issues to fully realize the potential of IT in enhancing productivity.