The increased importance of IT in the public sector results in a greater need to establish IT performance management mechanisms. Public administrations need to control IT related investments by using performance management in order to assess and reduce IT costs. However, public sector organizations are only slowly adopting performance management of IT. So far, the driving forces, barriers and influencing factors regarding performance management of IT in the public sector have not been analyzed. The aim of this paper is to identify, analyze and discuss these driving forces, barriers and influencing factors by conducting a literature review and to show how performance management of IT can be designed in the public sector in order to improve its acceptance.