Transnational It Operations

Transnational IT Operations

Bruce Nixon

CIS/578 CIS Strategic Planning

September 9, 2010

Leon Jackson

Transnational IT Operations

Remaining competitive in today’s dynamic business environments can be a challenge for some of the strongest companies. The primary objective many organizations considering transnational IT operations is to cut operating overhead costs to free capital to invest in other areas to remain competitive nationally and internationally. Advantages and rewards exist for any organization to consider transnational IT operations however; leadership should consider associated risks with outsourcing before expending time, money and resources to execute such a change that fundamentally alter the structure of the organization. A thorough analysis and understanding of all major issues concerning transnational IT operations enables leadership to assess how the organizational strategic goals will not only bet met but also enhanced from such an undertaking.

Transnational Advantages

Numerous advantages exist with transnational IT operations but the critical element for an organization is to maximize leverage of these advantages against the company strategic goals to maximize ROI and profit generation from outsourcing IT operations. The bottom line for overseas outsourcing of business elements such as IT operations are cost savings and streamline of operations to gain a tactical or competitive edge against competitors in the market-place. The Flatworld Solutions website (2009), state some of the key critical advantages such as:

• Can help the organization to free up its cash flow.

• Offshoring can help the organization save on capital expenditures.

• The organization can experience increased efficiency and productivity in non-core business processes.

• Can help streamline business operations.

• Can save on time, effort, manpower, operating costs, training costs.

The advantages of transnational operations in end with proper planning and execution should not only save on resources and money but also free capital to help an organization become an even stronger competitor.

Transnational Disadvantages

There are some disadvantages of transnational operations that a company should evaluate prior use of these of these business