Transnational IT OperationsThe innovation of technologies along with world trade agreements has enable companies to globally expand and do business. Transnational IT operations are handled in more than one country. According to Wikepedia (2011), a corporation or an enterprise that manages production or delivers services in more than one country that has its management headquarters in one country, known as the home country, and operates in several other countries, known as host countries (p. 1).
0 Transnational IT operations allows organizations to work in a challenging global environment. The business and IT strategy has to be clear in order to manage information technology and human resources in a global environment. This paper discusses, advantages, disadvantages, and issues related to transnational IT operations such as cultural diversity, languages, technological infrastructures, local customs, and control issues.
This paper will also discuss transnational IT operations with respect to the transfer of work, quality issues, global networking, and service levels. Advantages and DisadvantagesAs an advantage migrating domestically to transnational will improve profit, decrease cost, and enhance the supply chain, increase the quality of service, regenerate operations, and creates flexibility and diversity in a global market. According to Marulanda (2010) from Transnational Operations, while issues such as quality of work and service levels have traditionally plagued international corporations, the evolution of technologies and the experience gained from transnational operations are also vastly improving these areas and diminishing the negative view traditionally held. Transnational operations provide flexibility in many different areas, such as business operating hours, service language, and market reach among others. Because different parts of the world operate in different time zones, businesses that operate in other parts of the world can offer around the clock service by strategically operating in certain time zones. Also, the different language spoken in other countries can add flexibility by providing customers with language options. Additionally, businesses that operate in other countries develop a communications and technological infrastructure in order to operate successfully. This added infrastructure can be used and leveraged to take advantage of the local market under which the organization operates in (p.
1). Cultural diversity also is an added advantage. Organizations have to consider cultural diversity when they expand globally. It can be a challenge with respect to other countries punctuality or attitudes towards bribery or child labor. As an advantage cultural diversity according to Marulanda (2010), diversity in the workforce also provides organizations with the experience and tools required to market products globally. This diversity not only provides an expansion in customer reach by increasing the languages that the company can service, but also with an experience in how to manage cultural diversity among its customer and employee base (p.
1). As a disadvantage to transnational IT operations a country may political issues that may hinder transnational global effectiveness. A country may have laws which may place a tax on products, product liability issues as well as exportation laws. Another disadvantage may be another country??™s work ethic, which may not be the same as domestic work ethics. According to Heil (2011), including opportunity costs, greater business complexity, and potential losses stemming from unforeseen aspects of prospective markets and from currency fluctuations.
Other disadvantages might result from potential losses associated with unstable political conditions (p. 1). Transfer of WorkOrganizations that transfer work globally have to manage and monitor the work closer than work domestically. The main objective is to select a company that has experience delivering a quality IT service and product. There has to be an understood language of what is expected and needed from the transfer of work.
According to Kniaziewicz (2008), transfer of work means transferring data. Organizations are outsourcing tasks, like call centers and application development and support. These tasks require continuity between the vendor and organization. Without continuity the customer does not receive expected or perceived support and the organization starts to lose revenue. Cross-culture differences need to be examined and corrected; so all aspects of the business prosper (p.
1). Quality of WorkTransnational IT operations quality of work can be a difficult task to manage. The strategic plan will include the requirements and functional specifications that are required to complete a job. The ideal way to manage the quality of work is by meeting at different milestones throughout the life cycle of the project. According to Kniaziewica (2008), Cultural differences and language may provide a barrier during contract negotiations.
The resulting breakdown affects the quality of work as the transnational IT operations attempt to accomplish a project. Global Networking and Service LevelsThe key to global networking and service levels understands the lines of communication. Global networking is done through email and web conferencing using broad band connection and/or fiber-based global communication.
Global service levels incorporate new technologies that allow an organization to develop world class global standards with real time information. According to Kniaziewica (2008), E-business requires organizations to recognize emerging markets. Microsoft has employed a successful project of placing call centers within markets to overcome cross-cultural differences.
If the organization is relying upon a vendor to provide support on a continual basis, the organization needs to evaluate current infrastructure improvement planning and alternate means of the vendor to provide support. IT operations need to consider the consequences and how to overcome any outages or switch failure during transnational operations (p. 1).
In conclusion, transnational IT operations have changed due to emerging technology. Technology is a major role in globalization. It has allowed companies and countries to collaborate information more efficiently and faster.
An understanding of cultural diversity, customs, and laws must be considered to enable the success of transnational IT operations. ReferencesHeil, K. (2011). Strategy in the Global Environment. Retrieved from http://www. referenceforbusiness.
com/management/Str-Ti/Strategy-in-the-Global-Environment. htmlKniaziewica, M. (2008). Transnational Information Technology Operations.
Retrieved from http://ebusinessjuncture. com/blog/page_id= 47Marulanda, J. (2010). Transnational Operations.
Retrieved from http://www. thecompanyofthefuture. com/post/Transnational-Operations. aspxWikepedia (2001), Multinational corporation or enterprise. Retrieved from http://en. wikipedia. org/wiki/Multinational_company