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Creation of knowledge and its effective utilization is essential for high-tech organizations to survive and grow in today's intense competitive business environment. An in-depth literature review reveals that the earlier research did not deal with a wide variety of relevant IT tools and methodologies sufficiently for knowledge creation in complex software and systems development in globally distributed high-tech organizations. Thus, this research has been undertaken to identify and analyze different suitable IT tools and how these tools can contribute greatly to knowledge creation. A framework has been developed based on an in-depth study of the utilization of appropriate IT tools for knowledge creation, expert experience and our personal knowledge in this area. The framework can have a wide variety of applications in research and practice. This study also provides some future research directions.