The thrust for globalisation of society has taken centre stage. This means that people around the world are required to develop high level but low cost technologies and innovative competencies in order to enhance social development. In the field of higher education, university managers need to join the technological revolution by adopting low cost ICT and E-learning facilities. This paper examines the role of E-learning in university effectiveness so as to deal with the challenges of Social and global competitiveness in developing countries. The paper defines the concept of E-learning, justifies the need for E-learning in Universities in developing countries, obstacles and challenges of embracing E-learning innovation, involving academics in E-learning reform in Universities, implementing E-learning technologies and innovation in Universities, and the remedies for ensuring successful E-learning in Universities in developing countries. With the impact of globalisation, universities in the developing world have become competitive in terms of providing quality and flexible educational services to the diverse students' communities. Therefore, creating an enduring vision and a strategic implementation framework for the effective implementation of technological innovations and E-learning seems critical. The demand for skilled workforce equipped with technological skills and competencies to cope with the ever-changing responsibilities at the work place warrants universities to adjust their teaching strategies beyond face-to-face instruction in the classroom. However, it requires institutional leadership in order to promote technology use in university education.