In recent past, IT industry has seen massive growth. However it is not much mature in developing countries, facing many challenges particularly in project management. As a result performance of IT industry is not up to the mark and unable to provide professional support as compared to internationally recognized standards to public and private sector organizations. There are many challenges such as shortage of skilled and experienced human resources and high employee turnover. Tough and competitive market condition requires the product to be extremely good in performance, timeline and accuracy. Effective project management and collaborative efforts of the Government and IT professionals can make highly successful market for IT projects. Success rate of private sector organizations is high as compared to public sector organizations in developing countries like Pakistan. In this research we have explored the performance of IT project management in public and private sector organizations of developing countries focusing Pakistan, to find out the reasons of project failure and success in both public and private sector organizations.