The IT department at Bethlehem Steel Co. will undergo major changes as it becomes more tightly integrated with the company's financial unit as the steelmaker battles to emerge from bankruptcy. The group has shifted into the business-services division, which includes transactional and technical services. In addition, Thomas Conarty, senior VP and chief of procurement and IT, will retire at the end of this month and won't be replaced. His post is one of several senior positions that have been cut, a spokeswoman says.

Larry Clees, director of IT, will report to VP of business services Ed Reybitz, who reports directly to the CFO. Conarty reports to Duane Dunham, the president and chief operating officer.

Bethlehem's change in management structure is no surprise. It filed for Chapter 11 bankruptcy in October and has cut a quarter of its nonunion workers since June. U.S. Steel Corp. has said it may acquire Bethlehem. Executives at Bethlehem couldn't be reached for comment.

More companies are forging closer links between IT and finance and having the CIO report to the CFO, analysts say. "Deriving maximum benefit from technology investments requires an investment and portfolio-management approach," says Meta Group analyst Maria Schafer. "It's become incumbent upon a CIO to be sure the business side pays its share for services rendered by the IT organization. Finance is a key component for CIO skills these days."

Sean Magee, VP of IS for Lanier Worldwide Inc., reports to the CFO--and likes it that way. "Many IT departments look at the CFO's organization in a somewhat adversarial way," he says. At Lanier, falling under the CFO's purview means IT and finance work more closely together to develop a return-on-investment methodology. "This has gotten the finance department more involved with identifying the benefits and costs of projects," he says. "As such, they're partners on decisions related to which projects are approved vs. delayed."