Information systems and technology strategy has been discussed by many researchers and authors over last three decades. The concepts of business alignment, competitive advantage, value generation etc. have been elaborated and still similar discussions continue. While the advances in IS/IT strategy formulation were being made, the businesses were changing their operating models. More specifically they became global businesses active in multiple geographies at the same time. This research aims to provide deeper understanding of IT developments in global organizations as manifested in the changing social and political environment of the organization and the reciprocal effect of social and political changes on IT strategies. Further it aims to investigate whether the relevant theories and concepts can be integrated to develop a new model that can incorporate the socio-political aspects into IS/IT strategy formulation. To achieve this objective the literature survey was conducted to explore available published papers in the sphere of IS/IT strategy formulation. Considering that the applicability of information systems and technology falls into the sphere of social sciences, the research design focused on the qualitative approach. The primary method of data collection was through semi-structured interviews with IT managers. This was complemented by interviews with business managers and consultants. Further the experiences of the researcher in the earlier role of practitioner were taken into account.\ud Using grounded theory approach the information collected through interviews, own experiences and the data gathered from literature survey were used to develop a new model of IT strategy formulation. The model addresses the context part of IT strategy formulation process. This model development is aimed to counter and account for the political and social aspects of strategy development and deployment in global corporations characterised by diversity of cultures, attitudes and behaviours
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