Risk Assessment regarding Future of IT
With respect to outsourcing, the possible risk or problems that IT could face in the future are as explained further. There are different outsourcers depending to where they are located. They include three kinds that are outsourcing, offshore outsourcing and offshoring. Although these terms are used as a replacement of the other but their meaning is different from one another. Outsourcing is the allocation of an organization’s operation to another responsible party. Now the difference lies in the presence of this third party, that is, if the third party is located outside the host country, it is known as offshore outsourcing.
While on the other hand, offshoring is when an operation of an organization is taken to another country without transferring control to the third party. Hence the difference is of transfer of control to another party, that is, the power remains within the organization in case of offshoring while in offshore outsourcing it is transferred to the third party. In case of IT offshore outsourcing, the main country that receives the majority deals is India due to its IT success in recent years with able IT graduates and world-renowned IT universities present in India.
Different problems might occur due to the location of the outsourcer, that is, in case of offshore outsourcing, the cost of checks and balances, transportation, dealing across distances might end up being equal or surpassing the cost cut that is the purpose of outsourcing. Hence, nullifying the effect of outsourcing with the cost incurred for distant dealing. “One issue offshoring of technical services has brought more attention to is the value of education as an alleged solution to trade-related displacements” (Wikipedia, n. d. ).
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The foreign location of the outsources in case of offshore outsourcing and the exapanding of business globally in case of offshoring might also be subject to crticism due to the reason that it causes the host country to suffer with opportunities travelling to other countries rather than being available to others. Hence, along with certain positive outcomes, outsources is subjected to a sufficient amount of criticism as well. In order to counter the crticism, it would have to scrutinze itself and remove such drawbacks. Weaknesses in Current Information Technology Capabilities
However, the McDonalds journey may be rapidly moving towards the success ladder but there are several pitfalls that have occurred in its Information System and its capabilities. For us as managers, it is very important to identify those pitfalls and rectify them as soon as possible in order to avoid any forthcoming problems or issues. The technological world is an extremely rapidly evolving environment, with information becoming obsolete after a certain period of time. Hence, it is very important for the Managers to take that into account and be on the constant guards to protect their image.
Wi-Fi is a very innovative and healthy technology but in those countries that are well equipped to support this kind of technology and the citizens prefer to have it in a restaurant. As per a management’s perspective, to implement it in a country like Bangladesh or Pakistan, where there isn’t much knowledge of technology among the masses, would not only be unfeasible but also irrelevant expenditure. As for the PC POS System implemented, it does save time but being a Manager it is very important to receive the detailed information to further process it for other uses which it failed to do.
“The data that is batch-dumped to the McDonald’s mainframe system in Oak Brook every night doesn’t offer the detail McDonald’s executives needed and, worse, took as long as a week to be compiled analyzed and distributed to managers who would then order more patties, buns, etc. from McDonald’s vendors”. Hence, it needs to take that into account as well. Professional Presentations & Requirement of Soft Skills All the organization of such calibre are required to have high aptitude personnel in it with the presence of hard skills as well as soft skills.
In order to sell your product, one has to make sure that its presentation and the its communication is up to the mark. The more the people are convinces the more is the popularity of the product or service meant to be. It is very important for a professional to possess the skills of speaking well and hiring such professional can be a tedious process but all the effort is worth it. Hiring is a very difficult process; it takes a lot of time, patience, and money. Gone were the days when management only looks for technical skills alone, now, they are more focused with soft skills referring to non technical skills of an individual.
What are soft skills? According to Mannering (1998) they are considered to be harder to identify, to distinguish. Ironically, for many managers, the soft skills are the hard skills. Ask anyone who has had to manage change, deal with organizational politics, or build a disparate group of people into an effective team (Holbeche, 2006). Platinum skills are developed through training and delegation, active listening, giving and receiving feedback, and creating a motivational environment. (Topchik, 2004).