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Challenges in Global Information Technology Management:

Managing IT globally is a very difficult and challenging task. The IT managers have to face a lot of challenges while implementing global IT management. Some of these challenges are similar to those encountered at the regional and national levels, while others are completely new. Following are the most general global IT management challenges faced by organizations worldwide.

Cultural Differences

Organizations face certain cultural challenges while operating in the global business environment. These challenges are due to the differences in the religion, customs, social attitudes, language, working styles, working relationships, etc., in different countries. In order to solve these problems, the IT managers should be properly trained before they are sent to work in other countries. They should be well-informed about the culture of the country in which they are going to work.
Organizations also have to ensure that the global IT solutions developed by them do not fail when they are implemented at the local level. For instance, Japanese users of an American software complained on finding the dollar sign in place of the yen in a financial report which was denominated in yen.

Geopolitical Challenges

Organizations face challenges when it comes to deploying IT solutions developed by them across the world. This is because of the political situation in some countries. For instance, when Google, Inc.[16] decided to set up a site in China, it had to censor the search content on its site due to the restrictions posed by the Chinese government. Organizations therefore, need to evaluate both opportunities and threats before expanding into another country.

Problem of Control

To manage IT globally, the organization needs to have a global chief information officer (CIO). The organization should also have IT departments in all the countries where it operates and several CIOs to head those departments and manage the operations in those countries. The country-specific CIOs report to the global CIO who is placed at the headquarters. The global CIO should be a strong communicator who has the ability to motivate and lead the country-specific CIOs. It is an added advantage if the global CIO has had previous work experience in various countries. In addition, the performance metrics of the country-specific CIOs should be aligned with the global IT management. Otherwise, it would lead to a lack of cooperation from the country-specific CIOs.

Information Requirements

As the operations of a global organization are diverse in nature, information that would aid them in controlling and coordinating the operations is needed. There is also the need for efficient warning and reporting systems. The managers require functional information such as purchases, sales, accounting, etc., which reflects the past performance of the organization. It is a difficult task to coordinate the activities of a global company. IT offers tools which would aid the global managers in managing the operations of the organization. For instance, IT provides tools like fax, video conferencing, electronic mail, voice mail, chat, and other such communication facilities that provide faster and easier access to information for the organizational users.

Trans-border Flow of Data

Global IT managers face the challenge of sharing data across borders. This is because some countries are concerned about privacy and employment related issues. Several laws and regulations have been framed by countries regarding the trans-border flow of data. These laws and regulations help the countries to carry out such data transferring processes.

Coordination:

The problem of coordination arises when the foreign development centers or the headquarters do not properly coordinate with the local development centers or vice versa. The local staff may not have the required skill set for designing the information system and as a result may design a poor system. On the contrary, the local center is well aware of the economic and political environment and therefore is in a better position to design the system when compared to the foreign counterpart. To achieve proper coordination and favorable results, it is vital for the local center to constantly communicate and coordinate with headquarters.

Varied Set of Skills

Manpower skills differ from country to country. As these variations are at the macro level, they will have an impact on managing IT globally. Therefore, these variations need to be properly interpreted and taken into consideration while designing global IT solutions.

Standardized System

While operating at the global level, organizations need a standardized system which would make it easier for them to access data from anywhere in the world. However, it is not possible to develop such a system due to the economic and cultural diversity of different countries. Standardization of global technology systems also requires standardization of the core systems, and this takes a long time to achieve. It is therefore, advisable to develop a global system which is, in turn, customized to suit the needs of specific countries.

Telecommunication Networks

Constructing a telecommunications network is a major challenge for a global organization. A global company has to establish a link to the various developmental centers located worldwide. This is a difficult task as the telecommunications standards and regulations are different in different countries. The services offered and the pricing policies of the telecommunication networks also differ between countries.

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