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Ethics

Transnational IT operations

Introduction

The global marketplace opens many new avenues of growth for national firms. Industry competition has galvanized companies to seek transnational opportunities that have developed due to technological, social, and economic changes around the world. By in large, this new corporate culture may reflect the need to hire and locate information technology facilities in whatever country meets the demands of corporate activities. International networks in terms of computers and telecommunications has allowed companies to expand their reach to host environments in order to facilitate and standardize the control and performance required to remain profitable.

Advantages of Transnational IT Operations

Technological, economical, political, and socio-cultural developments in the global marketplace have made locating or relocating facilities to other countries profitable and beneficial. The strategy of decentralizing corporate activities has made "national borders almost irrelevant." (Goar, ¶ 2, 1993) While the U.S. Free Trade Agreement and North American Free Trade Agreement may have created an atmosphere in which business can conduct global production, development, and marketing, TNC's (Transnational Corporations) may also find those cross-national agreements with information technology hiring and facility locations in other countries as "free-production agreements". (¶ 6) IT Operation facilities that we may likely see being hosted by a TNC may include production, development, project management, and telecommunications such as a call center. Hosting these facilities in other countries may reveal many advantages, such as:

• Competition. In order for many companies to remain competitive, seeking a TNC solution can provide minimized investments in jobs, technology, and facilities when compared to domestic equivalents. Requiring fewer investments can decrease costs and increase competitive leverage.
• Leveraging costs....