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In addition, the use of technology has become increasingly common; as a result, geographical boundaries which previously functioned as a barrier, are now being dissolved, facilitating interaction and communication among organizational employees in various nations. A global information system functions within a global context, therefore a leadership strategy that appears appropriate within an organizational context in one country might not necessarily be as relevant in a different country with a different cultural context. As a result, devising an effective leadership strategy must also take cultural, political and legal factors in different countries into account.
A global information system refers to any information system that is developed and used within a global context. Outsourcing of organizational functions is becoming increasingly common, especially within the IT context, in order to gain cost benefits. Devising an effective strategy for leadership is vital, because coordinating the effective functioning of the various subsidiaries would require an adherence to the regulatory and legal frameworks that are in place in the subsidiary countries; it would also require adaptation in terms of cultural elements. Devising an effective leadership strategy would therefore require a well thought out approach. This study examines leadership issues in the context of a global information system and sets out a framework for a model that may be applicable.
Outsourcing has been defined as the use of external agents in order to perform organizational functions (Brooks, 2006). Where IT sourcing is concerned, this could be carried out in-house, wherein it would be internalized or outsourced to other individuals and companies across the globe, which would in turn, affect the impact of the outsourcing decisions on the workforce and their motivation. Leadership has traditionally been associated with management, but
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