ICT is used to enhance the overall activities of individuals, administrative processes of businesses and various governmental and non-governmental organizations. Despite its advantage in all aspects of development, it has drawn low attention in expanding the services in general and utilizing the technology in particular. Therefore, this study was aimed to explore the main factors that affected the usage of ICT in Illubabor zone, Ethiopia. A descriptive cross-sectional study design with quantitative and qualitative data collection method was carried out. The data was collected from 195 samples by using structured questionnaires and observations by employing simple random and purposive sampling techniques. SPSS version 16 was used for data analysis. The study confirmed that lack of computer skill training for staff and lack of sufficient budget for the provision of ICT are the major bottlenecks in expanding ICT service in the zone. Major emphasis should be given in enhancing the awareness of government employees to make use of ICT services in their daily official work.