IT Organization - Essay Example

? IT Organization Review of With the advent of globalization and the rapid technological development, it has become vital for every organization to adapt technological aspects whether in operational or other segments. The vital reason behind the implementation technology in conducting business is that it not only helps in making the business functionality more efficient and easy but also helps in decreasing operational and other cost to a great extent. It can be argued that the increasing adoption of information technology (IT) in the field of business, has not only proven to help the organization but it has also provided opportunities for individual to set up business in the IT sector as it is regarded as one of the most growing business in the current commercial market (Sengupta, 2012). Additionally, it has also been viewed that countries like China, the United Kingdom and Australia are becoming a center of attraction for large IT industries to set up their business in these locations and explore the associated opportunities. Telecommunicating is a form of IT organization where employees working within the association do not commute to a central place of work. A person who communicates is generally known as the telecommuter or teleworker. A research conducted by Reuters poll demonstrations that about one in five employees round the globe, particularly working in the “Middle East, Latin America and Asia telecommunicate regularly” and nearly 10% work from home (Reaney, 2012). Discussion Telecommunicating industry is considered to be one of the most frequently growing industries in the IT sectors. It is an organization where task are performed outside of the normal organizational space and time with the help of computer and other communication technologies. Correspondingly, the growing number of industries around the world, it has been viewed that large multinational organization assign their task to some other organization in order to maintain a coordinated relation amid all its stakeholders and customers. Considering the aspect of telecommunication industry in Australia, recently it has been viewed that Australian telecom are concerned about the cost implications and selective impact of rigorous new national security proposal (Commsday, 2012). The aspect of telecommuting in the UK is considered to be one of the pioneers around the globe. Started in the year 1986 the country has 92,000 employees out of which 15,000 are considered to be home workers. It is worth mentioning that the vital reason behind providing the facility to work from home is that it saves an average of US $5,000 a year as employees are not required to spend on travelling and are considered to take few sick leaves as they are close with their family members (BBC, 2011). Considering the aspect of telecommuting in China, it can be stated that the country has been the place of attraction for many large industries due to its rapidly increasing literacy rate and continuous availability of skilled human resource (KPMG, 2010). Considering the above stated facts of the three selected country the new IT organization would provide the facility of working both from home and office to individuals. The organizational chart of the new organization is being illustrated below: Figure: IT Organizational Chart (Georgia Institute of Technology, 2013) With reference to the above illustrated organization chart, it can be viewed that since the organization would be based on providing IT services to three major countries in the world. It is therefore vital that the organization is built on a cross functional basis as it provides much more convenient working system within an organization. Additionally, it can be ascertained that it provides a rigid and coordinated form of working system which is specially needed in all IT industry. Considering the aspects of providing services and establishment in three of the largest country, the required budget has been estimated to be US $30 million. This would include steps like developing IT governance structure, establishment cost, taxes that are need to be paid to the government, advertisement cost, cost of buying equipment’s that are needed to provide services to the clients, recruitment cost and others. Furthermore, considering the aspect or personnel that are to be recruited, three Chief Information officers (CIO) would be hired for three of the organization in three different countries and there pay would be averaging around US $105,000 annually. However, the salaries would be negotiated based on the qualification, technical skills and experience of the candidate. The second higher level personnel that would be recruited would be Chief Technology Officer (CTO) who would be responsible to focus on scientific and technological issues within an organization. Similarly, the salary for a CTO would be at an average of US $95,000 based on their skills and ability. It is essential that proper assistance is provided to all the executives as it will make their work easier. Therefore, three assistant subordinates would be recruited for providing essential reports to all the higher level executives whose salary average salaries based on these three countries would be ranging from US $60,000 to US $70,000. Correspondingly, the average salary for all the workers in the organization would start from US $2000 – US $3500 per month for the starting 5 months period in all the three locations of its operations. Five potential issues concerning with running a multinational IT group in the selected three countries are represented below 1. Multicultural 2. Team Problems 3. Update in Technology 4. Linguistic issues amid personnel working in three different regions. 5. It related legal Issues in different country (SlideShare Inc., 2013). Conclusion The contemporary business environment is conceived to be extremely competitive in nature. The advent of globalization and technology has not only provided opportunity but also created threat for many. Considering the growing dependency of large business houses on IT industry, it has provided opportunity for many individual and organization to invest in the industrial sector. A 10% growth in the employment rate resulting from IT industry in UK is one such aspect which proves that IT industry is not only providing business opportunity but employment opportunity as well. Concerning with the new organization, an organization chart has been prepared based on the cross functional team frame work as it provides a much coordinated working environment. Additionally, the salary of the different employees has also been estimated after analyzing the current market paying criteria. Considering the aspect of the selected country i.e. China, Australia and UK the major reason behind selecting the three countries is that these locations provides a wide range of opportunities as well as ample coordination from the government has been seen in the since last decade. Thus, it can be concluded that if the above mentioned plan is followed it would help in establishing an efficient IT organization. References BBC. (2011). Home working: Why can't everyone telework? Retrieved from http://www.bbc.co.uk/news/magazine-11879241 Commsday. (2012). Telcos concerned by scope, cost of Australia’s strict national security proposals. Retrieved from http://www.commsday.com/commsday-australasia/telcos-concerned-scope-cost-australias-strict-national-security-proposals Georgia Institute of Technology. (2013). Office of information technology. Retrieved from http://www.oit.gatech.edu/sites/default/files/OIT_ORG_chart_07-23-13.pdf KPMG. (2010). Education in China. Retrieved from http://www.kpmg.de/docs/Education-in-China-201011.pdf Reaney, P. (2012). About one in five workers worldwide telecommute: poll. Retrieved from http://www.reuters.com/article/2012/01/24/us-telecommuting-idUSTRE80N1IL20120124 SlideShare Inc. (2013). Organizational issues and trends. Retrieved from http://www.slideshare.net/manovieira/organizational-issues-and-trends Sengupta, J. (2012). Dynamics of industry growth. United States of America: Springer. Read More