Virtual teams are becoming an important work structure in software development projects. However, a number of issues arise due to the complexity and newness of the virtual team context. One such issue relates to when and how team leaders should delegate authority and responsibility to the team. Previous studies have yielded conflicting results. This work aims to answer this question about delegation by investigating the moderating effects of team maturity and team distance on the relationship between leader delegation and team outcomes. A research model and specific propositions are presented. This paper provides useful insights for future virtual team leadership research and for organizations interested in developing virtual team leadership.