Aspects, advantages, and disadvantages of transnational IT operations

Transnational IT Operation

Due to improvements of technologies and world trade agreements new opportunities have been created for companies to carry out their business globally. The description of transnational companies is that they are companies which carry out their business in not only one country but more. From the researches transnational companies can be described as a transnational corporation (TNC), or multinational corporation (MNC), as well called multinational enterprise (MNE), and is an enterprise or corporation that controls delivers services or production in not only one country. It may be given another description of an international. This content has the analysis of pros and cons of graduating from domestics to transnational company. Matters associated to transnational IT operations, quality of work, transfer of work, service levels, language, cultural diversity, local customs, technological infrastructure, and control issues.

Information technology tends to be identical with outsourcing. Transnational IT operations has been facilitated by increase availability of network bandwidth globally, companies or organizations seeking external skill sets and lower pay rates. Even though technology covers the similar language, the driving force behind the technology is people. Companies or organizations are supposed to take into consideration other factors and should not only put center of attention on raising the "bottom line" through lessening the labor cost.

Pros and Cons of Moving Globally

The mainly pros for changing from domestics to transnational is reducing cost, adding profit, improving supply chain, understanding markets better, providing better service, attracting global talents and improving operation. Cons of changing business globally are for the reasons of product liability laws, political stability in some countries, exporting restriction, work ethics, deviation in language, availability of raw materials and unstable tax rates.

IT Operation in Transnational Companies

Doing work in global environment poses own challenge and issues. Companies should be having clear strategy to control human resource and information technology (IT) within the transnational environment. Flexible polices for firms for HR develops sophisticated IT ability to equivalent the globalization needs. Staffs are expected to move in diverse countries with the obligation of exchanging information with head office and should have the capability to access services and information for them to carry out their jobs. IT operation should be able to develop services which are shared that support these needs. Moreover the team of IT should support the employees of the company or organization around the world all the time, Williams, L. And Kessler, R. (2000).

Work transfer

Managing complicated environment of IT is a difficult job. Most companies contract out the work or shift the work to other companies. This is the major familiar purpose shifted or transferred support and application development. Close monitoring are needed for transferring work of outsource company. The success key is through choosing the correct company in order to deliver quality product and has got the experience in delivering IT function. W e can find that where one works, they outsources infrastructure project of IT, together with application development as well as managing operation services. The agreement with outsource company is a four-year Build, Operates and Transfers (BOT). They might use the concept of BOT for the reason that not enough resource of IT is available within the country. This makes easier for the company to get used to technology which is new and transfer knowledge to local team by outsourcing, Greaver, M.F (1999)

According to research from "Zerah" 35% of problems experienced in workplace are brought by language barriers whereas 65% are brought about through cultural differences, (Wasieleski, R., 2007). Companies or organizations are supposed to establish a familiar language tools to be used in transferring work. For example Transnational IT operations are using English as a basic language while doing their operation in data transfer and call center support. For instance, the transnational hierarchy of employees is an example of cultural differences which needs attention. Most businesses or companies within countries promote employees to come up with proposition to improve their performance; though, in China and India, there is no encouragement to the employees to make proposition and are required exclusively to carry out the duty for which one is hired.

Considerations in terms of legality need reflection over transfer of work. There are very stringent laws in the United States in terms of privacy. Though, most of other countries are not having the same laws ratified and in any case the laws are in place it can be hard to put into effect.

Quality of Work

In this case, it is not easy for the company to validate the quality of work that the outsource company does. The company might not have sufficient expertise to go deep in application to be able to define quality issues. That team is just capable of verifying quality from perspective application meeting their functional specification. The company has a very organized Service Levels Agreements ( SLA) to protect their investment. This evidently defines the measures as well as tracks service quality of outsource company.

Cultural Diversity

It is important for companies to take into consideration about the cultural diversity when moving globally. Cultures vary from country to country. In different places people have dissimilar attitudes towards intellectual property, environment, bribery, punctuality and child labor. Environment regulations are not present in most countries. Take for instance, the concept "Go Green" most people in Oman are not familiar with the meaning. Child labor is accepted in some countries. In these countries people can get that children are working in shops and factories. Looking at some other country bribery is the order of the day, in order for ones' work to happen. On the issue of punctuality some countries do not consider it as important. You will find that somebody being late for work for a half an hour or appointment is normal.