Considering that productivity has a critical effect on the economic development of a country, it is regarded as the basis upon which an economy's prosperity is hinged, which in turn affects national growth. Economic growth is also hinged on information technology as a veritable resource for companies and organization for their processes. Despite several studies on the impact of information technology investment as it relates to organization growth, it still remains a debate if IT investments has a significant effect on better productivity and business efficiencies. Libya is a country where the IT`s potential is limited in terms of reach and USAge, as data shows that amongst the MENA regional countries, Libya has the least internet penetration rate only behind Algeria, Iraq and Yemen. This study investigates the effect of information technology on the productivity and organizational agility of telecommunication companies in Libya. The study took a survey of sample size of 364 respondents from telecommunication industries in Libya, using a four-point experience scale (4-Excellent). The questionnaires were divided into three parts, with each section highlighting the IT incorporation in the companies based on companies' IT infrastructures and Personnel USAge, the organization productivity in terms of market profits and lead, and the organization agility. Results show that the effect of information technology on organizational agility is quite significant. The study goes to show that the competitiveness of the telecommunication industry in Libya is heavily hinged on the growth and integration of Information technology.