Global expansion poses serious barriers to entry, though. Consider the obstacles that you encounter in domestic IT management and operations. Now take those difficulties and transplant them across nations and cultures. Then add external variables such as economic regulations, political turmoil, and lack of technological infrastructure. By now global expansion appears virtually impossible to implement.
But it's not -- as evidenced by the fact that companies are internationalizing their businesses every day. The current economic model is a global one, based on transnational communication, cooperation, and transactions. Your business must inevitably participate in the globalization process, so that you can tap the foreign markets and resources that will prove essential to a company's survival.
In order to take your business global, you must understand the evolving economic and technological models in globalization: pros and cons, benefits and barriers. Learn which countries are the IT hotspots of both today and tomorrow. You must also figure out how to effectively implement international operations and manage a global staff. Fortunately, you don't have to build all of your own tools -- everyone from IBM to VeriSign is paving the way for true globalization in the IT industry.
Not all companies are looking for worldwide expansion in a single venture. Some businesses are gradually moving toward a global model by starting small. There are multiple places to begin, such as internationalizing your Website, recruiting overseas staff, or outsourcing development projects offshore. This ITworld.com report on globalization just might help you take that first step.
Understanding globalization
Global models
Global catch-22: Globalization is an inescapable force in business -- one that can boost your career or leave you behind. There are substantial barriers everywhere you look: culture, politics, regulations, infrastructure, technology, and even human factors. So how do you overcome this catch-22?
The new global economy: Bracing for the wave: A global economy clearly creates the potential for business outside the United States, but globalization also affects domestic strategy. Learn about the economic factors that will inevitably influence the way your company does business.
Shell refuels global IT model: In this interview, Shell Group CIO Alan Matula discusses the new model he's developing to govern a widely dispersed global IT enterprise.
Global IT development
From Russia with code: Many observers think that Russia has the potential to stake out a global IT position similar to those of countries such as India and Israel. Although challenges remain, Russia is getting the right mix of foreign investment, infrastructure improvements, and regulatory change, and it will soon be poised to play a role in international IT development.
Russia gets IT: After speaking with IT managers in Russia, ComputerWorld's Patricia Keefe has concluded that the country's state of burgeoning automation combined with a highly trained IT workforce is its ace in the IT hole.
DotKarma: While India has proved itself a high-growth technology center with a booming IT industry, advanced software development, and a significant labor pool, the country still lacks a strong technological infrastructure. Find out what this means to companies doing business in India.
Global communication
Mastering babel: Effective communication, already a challenge for working with domestic staff, is a top concern for managers who oversee large international IT operations. Communicating clearly across the organization is the only way to stay focused on corporate goals.
The Web may seem global but it's really local: Corporations have been seeking global brand hegemony for at least 10 years, and the Web seemed to be the perfect tool for this pursuit. But so far the Web has been a huge bust for them, because they forget that "global" is really the aggregate of "local."
Multiple-language support
Domain-name registration gets 64 more languages: Three months after VeriSign Global Registry Services (GRS) began registering Website addresses in four languages other than English as part of a test process, the company has added 64 new site registration languages to bring the Internet to a larger number of non-English speakers around the globe.
IBM globalizes WebSphere commerce tool: Taking aim at multinational corporations trying to tie up their existing business channels, IBM this week released a new version of its WebSphere Commerce Suite. Version 5.1 allows companies to build Websites based on the information users supply in their profiles -- including language.
Language translation technology advances: Transparent Language, a developer of language technology, allows businesses to take the applications they use and make them multilingual. The company's goal is to have customers take the translation server and integrate it into their Web applications.
Globalizing your IT business
Business processes
Ford opens IT hub in India to save millions: Ford disclosed plans last week to shift much of its computer-aided design and manufacturing (CAD/CAM) development, email processing and application development tasks to a subsidiary being set up in Chennai, India.
Customer support moves overseas: The thought of overseas customer support may have seemed far-fetched just a short time ago because of logistical problems such as high telecommunications costs and language and cultural barriers, but with declining costs and growing Internet access, the obstacles are quickly disappearing.
Disaster recovery
Averting disaster:
Keeping global IT systems up after a disaster requires central planning and common standards -- and enforcement from senior management.
E-commerce
Addressing major hurdles to successful global commerce: Beyond linguistic challenges, some of the logistical hurdles include import/export regulations, real-time currency exchange, tax and fee implications, and increasingly sophisticated fraud. Sellers entering the global marketplace must ready themselves for the unique -- although not insurmountable -- challenges that stand in the way of success.
Navigating the shoals of global commerce: Globalization has fundamentally changed the way business is, or can be, conducted. But as technology makes cross-border communications instantaneous, leaving no room for error, IT professionals must learn to play more important roles in the enterprise.
Goin' global: Steve Cole, senior vice president of corporate marketing for ClearCross (formerly Syntra), answers readers' questions about the challenges of taking e-commerce global. In this Q&A, he addresses such concerns as country-specific content sensitivity, global commerce models, and international distribution.
Networks
Taking on the world: Ruann Ernst, CEO of Digital Island, talks about how running a global business on the Web is a whole lot different from running one on the ground. One significant factor in overcoming the challenges is to understand the global network and the way in which each user fits into the network model.
Outsourcing
Selecting an international service provider: As the largest companies in the world set up e-commerce and industry-specific electronic exchanges that span many borders, more users will face the daunting task of selecting a service provider to handle international data communications requirements. Learn how to choose the right one.
Staffing
Tapping foreign shores: India, Ireland, and Israel have received much attention as target markets for offshore facilities and IT outsourcing. But Mexico, Belize, the Philippines and, more recently, Romania and Russia are also attracting projects as IT talent searches intensify. Global barriers can be effectively overcome with a little work and sensitivity.
Global glamour:
Meeting the demand for IT workers in a global context requires more than just competitive compensation packages, though these certainly are a must. Companies must also boast strong international reputations, attractive corporate environments, cultural sensitivity, extensive training programs, and -- perhaps most important -- challenging IT projects that allow workers to grow in their careers.
Foreign service:
Global staffing isn't just about finding overseas workers. Domestic IT workers who have completed foreign assignments say the experience has made them more independent and appreciative of diversity. In turn, companies are entrusting them with more managerial responsibilities.
Supply chains
Global supply chains may force internal system challenges: US-based companies looking to automate transnational supply chains frequently have to alter internal systems in order to handle the technical and business variables that await them in other countries. But the investment in communication, infrastructure, and training can reap significant long-term benefits.
