Transnational It Operations Paper

Transnational IT Operations Paper

International businesses have many benefits, in various areas, of information technology (IT) within the organization’s operations. In the business operations, IT can offer these organizations higher productivity and efficiencies, and lower operational costs. Organizations with IT can strengthen their business environment giving them the competitive advantage the company needs. IT can help these businesses, whether they are international or in the U.S., meet the demands of the consumer by responding faster to system problems and opportunities that surround the environment (Raisinghani, 2010). Businesses that respond quickly to system problems reduce the risk of losing consumer sales, while at the same time optimizing operational efficiencies. However, a transnational IT operation has its advantages, disadvantages, and issues.

As more and more businesses move some of their IT operations overseas, the initial intention was to avoid incurring additional costs or cut costs altogether. These businesses are repositioning their more routine tasks, like IT help desk or call centers. Businesses look at outsourcing as a tool for building a competitive advantage, while other organizations view it as a cost saving strategy. Organizations are using outsourcing strategies to improve technical response time and minimize the initial investment for retaining permanent staff (Higgs, 2010).

There are some disadvantages when outsourcing IT functions internationally. When businesses move some or all of their IT operations overseas, they are taking the chance of experiencing some cultural issues between the U.S. consumer and the international call center agent. The U.S. consumers are turned off, not by the service they receive, but the foreign voice on the other end of the line (Higgs, 2010). The international agent could deliver quality expertise, but their heavy accent makes it difficult for the U.S. consumer to...