God complex?
"IT departments get too big and centralized they tend to become experts at saying, ???No.??? They block more progress than they enable."
Sounds like they have developed the IT God complex! It is time to replace them. Not throw out the baby with the bath water. It also seems management has failed in allowing the IT department to get power hungry. Every IT department I belonged with had good managers that were determined to meet any 'need' and attempt the 'wants' where the customer could budget the cost or we invented an alternative to meet the 'want' as close as cost allowed.
If it's critical to you business and/or you do it often insource, if once in a while outsource but keep you IT team in the thick of it.
