Fast introduction of new products at low cost is essential for being successful in today’s industrial business environment. New product development (NPD) practitioners increasingly rely on information technology (IT) aiming to achieve lower costs, higher quality, and greater speed to market. A little is known about the effect of various IT tools on NPD performance and exploring this would ease effective deployment of IT resources in innovation programmes. This study uses data collected in Product Development Management Association’s 2012 Comparative Performance Assessment Study, from 453 firms across different countries and industries. Direct and indirect effects of four types of IT tools on financial and time performance of NPD projects were examined using partial least square path analysis approach. Results suggest that three of the IT types considered indirectly improve NPD performance by increasing collaboration, although no direct impact tested is significant. Extensive use of IT effectively contributes in reducing development times and increasing financial returns in collaborative NPD projects.