Transnational IT Operations Paper - Essay Example

Moreover, IT operations in America is expensive because of the less number of professionals available whereas it is cheaper in India because of the increasing number of It professionals there. In such a scenario, America would definitely think in terms of exploring the Indian IT market and outsourcing of It business from America to India is a common business activity at present. This paper explores the various aspects of transnational IT operations. “Technological, economical, political, and socio-cultural developments in the global marketplace have made locating or relocating facilities to other countries profitable and beneficial.

Strategies like decentralizing corporate activities have made borders irrelevant and could become even invisible as globalization becomes more prominent” (Smith) The current IT business world is experiencing stiff challenges from all the corners because of the technological advances and wide reach of internet related technologies. Most of the IT companies have reached the saturation level in their country of origin and they need to look for overseas market in order to effectively compete in the market.

Transnational It operation or offshoring of IT business is a common business practice, most of the IT firms are adopting at present. The major advantage of transnational IT operations is the reduced cost factor. “Many of the companies that provide outsourcing services are able to do the work for considerably less money, as they dont have to provide benefits to their workers and have fewer overhead expenses to worry about” (Thompson). IT professionals in America are getting a salary beyond $ 5000 whereas similar services can be obtained from India like countries at an average cost of even below $ 2000 with the help of transnational IT operations.

Since all the data can be exchanged through internet and no physical goods needed to be exchanged, transnational IT