Public sector organizations are invariable stuck in a contortionist position in regards to how they approach digitalization. Centralized delivery models for IT drive efficiency in the short term, but at the same time they have been identified to potentially counter-act innovation. This study utilizes an interpretative case study of 21 Swedish public agencies and their centralized IT function to analyze how existing IT governance configuration impacts organizational ambidexterity. The empirical base consists of 31 interviews and studies of secondary material in the form of steering documents. The findings show that IT Governance is experienced as decreasing the level of innovation in the organization and hence negatively impacting ambidexterity by systematically skewing the balance between efficiency and innovation. These findings are discussed in relation to previous research, and propositions for future research for better understanding IT governance configuration in the context of ambidexterity are presented and discussed.