Transnational IT Operations - Research Paper Example

Transnational IT operations al Affiliation) Transnational IT operations The progress in communication technology has changed the way companies conduct business nationally and internationally. Their affordability has enabled smaller firms to compete in markets traditionally controlled by large firms as well as compete in progressing and new markets. The popularity of globalization is openly associated with the popularity of communication technology as it provides businesses that at one point were unable to run business operations globally, with the opportunity to compete internationally. Transnational IT operations can offer organizations many rewards in several different levels, and well managed, the organizations can counterbalance the possible problematic aspects that exist, providing these organizations with an adjusted structure that can change the business into a prosperous enterprise operating in a worldwide stage (Mennis & Sauvant, 2006). Transnational organizations are flexible in many areas, such as business working hours, language of service, and market penetration among others. Given that the globe operate in different time zones, companies that function in other parts of the world service 24hours by tactically functioning in specific time zones thus increasing customer service levels. Personnel employed in the host country, know the language, and become part of the host culture. Consequently, the organization therefore gets an opportunity of extending its current market by selling its products and services in that host country (Moore, 2005). Diversity in the labor force equips the organizations with the experience and tools necessary to sell products internationally. This diversity not only brings in an enlargement in customer scope by growing the number of languages the company can service, but also equips it with experience in how to handle cultural variations among its client. Possessing this insight of managing diversity in language, provides firms with a competitive gain over industries that have only competed in home markets that cultural diversity may be absence. Finally, advancement in information technology in an organization gives it an upper hand to penetrate into international markets. Existence of global transnational corporations leads to a number of problems and shortcomings. Big corporations tend to pull wealth from establishing communities and localize it in localities where the corporation is centered. This can make the less central communities poor, mostly in unindustrialized nations. In contrast to small, local businesses, that recirculate both salaries and returns through the homegrown community, transnational corporations pay local workers’ salaries, but take returns away to different locations. Persons at the top of business pyramids, such as CEOs, are often paid massive annual bonuses grounded on the profitability of the corporation. This practice strengthens the issue of wealth localization. Secondly, not every nation can access technological infrastructure adored by most first and second world republics. Furthermore, few social classes and business sections have access to communication networks. The charge on such services may be expensive and unaffordable to most upcoming businesses. In some other case, these services may be available but their levels may be below the range that the organization needs leading to difficulty in the transmission of work or meeting project time limit and can lead to quality concerns. The variation of legal tender of money and other economic issues can harmfully influence operations. The fluctuations in monetary policy and other economic issues are hard to foretell and thus increases the danger of failure. As a result, it may lead to escalated costs of operations and affect the cash flow and revenue of a firm (Sarkar, 2003). Transfer of work denotes to the process of transferring data and information. Outsourcing organizations, for example call centers and companies carrying out application development and technical support call for a nonstop link amid the organization and client. If the connection is stalled, the organization will lose revenue, as the client may not receive his anticipated service appropriately. Cross-culture variations need to be examined and corrected; so that all the aspects of the business prosper. Finally, legal concerns like privacy need to be considered in respect of transferring of work. Transnational IT operations are faced with challenges pertaining to quality of their work. Quality of work needs to be taken into consideration. Concerns of how employees feel about the organization of which they are working for and the way the work is being done, should be addressed. Contract dialogues may face some hindrances in terms of cultural dissimilarities and language. The ensuing breakdown influences the quality of work as the transnational IT operations attempt to complete an assignment. An instance would be cultural differences in respect to rushing to meet a time limit or taking the additional time needed to accomplish the task in the approved manner. Global networking and service levels are coming up and are in the development levels. Commerce in the United States and Europe mistakenly take up that network capabilities are similar globally. Currently, a chief target for outsourcing is India. India has taken control to the country’s telecommunications infrastructure; however, they are focused on chiefly urban areas. In addition, E-business call for organizations to be familiar with emerging markets. For instance, Microsoft has put in place a fruitful project of employing call centers in the interior of markets to overcome cross-cultural variations. Soaring above cross-cultural dissimilarities and language barriers can be overcome more easily by grounding support structures within the culture. Statistically, while Asia contributes to 56% of the population of the world, the area only contributes to 5.6% of the Internet consumption worldwide. Finally, Transnational IT operations need to ponder on outages and the aftermaths on the founding organization and global operations. If the organization depends upon a merchant to offer sustenance continuously, the organization must assess current infrastructure upgrading planning and substitute means of the merchant to offer support. IT operations must put into consideration the outcomes to succeed in all operations emanating from trans-national involvement (Stonehouse, 2004). Finally, globalization of markets through transnational IT operations is problematic to many organizations. Organizations need to assess the aspects, benefits, and drawbacks of transnational operations. Areas demanding inspection are: diversity in culture, language, technology systems that affect the organization operates local customs and control issues. Failure to consider all traits of transnational IT operations could end up in impromptu production outages and client loses. Nevertheless, organizations that do offer the mandatory research will share the recompenses of a worldwide economy and emerging markets. References Mennis, B., & Sauvant, K. P. (2006). Emerging forms of transnational community: transnational business enterprises and regional integration. Lexington, Mass.: Lexington Books. Moore, F. (2005). Transnational business cultures life and work in a multinational corporation. Aldershot, Hants, England: Ashgate. Sarkar, R. (2003). Transnational business law: a development law perspective. The Hague: Kluwer Law International; Stonehouse, G. (2004). Global and transnational business strategy and management (2nd Ed.). Chichester, West Sussex, and England: Wiley. Read More