Question

One of the common IT acquisition alternatives is acquiring outsourcing services. Organizations are outsourcing many functions, including IT functions, to both domestic and international organizations. What are the two or three most important issues facing CIOs and their IT project managers in USA companies that rely heavily on outsourcing IT functions? How should these issues be addressed?"

Answer 1

Answer: The two main issues faced by the CIO’s and their IT managers are

• Cultural differences: This is one of the most important issues which are faced by the American firms as they outsource. The cultural differences based on the organizational culture, social and national cultures create issues in overall co ordination inside the organization and also in providing the desired customer service.
• Intellectual property violations:   Outsourcing increases the risk of the breach in the intellectual property rights of the companies. The company during outsourcing have to share their trade secrets, business plans and other propriety knowledge with the outsourcing partners. This creates a high risk for the theft or hacking the intellectual property of the companies.

The above mentioned issues can be resolved as follows

• Cultural differences: The companies can deal with this issue by introducing the multicultural and diversity management and awareness training program where the individuals from Client Company can be trained as per the requirements of the business and the project.
• Intellectual property violations: For dealing with this issue it is essential that the company prepares strict protocols and safeguards so that the intellectual and propriety knowledge can be safeguarded. The companies can develop both physical and administrative safeguards like policies and procedures which can help in protecting the intellectual and propriety knowledge by preventing unauthorized access to them.