Abstract: The IT sector relies heavily on skilled employees and effective performance evaluation systems. Traditional appraisal methods often fail to provide a complete and unbiased assessment of employee performance. The 360-degree feedback system, which collects feedback from supervisors, peers, subordinates, and employees themselves, offers a more comprehensive evaluation. This study examines the impact of 360-degree feedback on employee performance in the IT sector using data collected from 100 respondents. The findings indicate that the system improves fairness, self-awareness, motivation, and overall performance, making it a more effective alternative to traditional appraisal methods. The research analyses employee perceptions, acceptance, and the effectiveness of this multi-source feedback mechanism in improving self-awareness, motivation, leadership skills, and overall job performance. Primary data for the study was collected through a structured questionnaire from 100 employees working in different departments of IT organizations, while secondary data was gathered from books, journals, and research articles.