...Minicase: Can Brazil Become a Global Competitor in the Information Technology Outsourcing Business? 1. Use the theories of international trade and investment that have been presented in this chapter to help explain Brazil’s intentions and actions regarding the international information technology sector. The IT Service industry has expanded rapidly. Many companies worldwide have made the decision to outsource this industry to offshore companies. Worldwide demand has increased growth to 40 to 50 percent on an annual compounded rate basis. Many developing nations like Latin America and Asia have made an attempt to obtain some of the IT offshoring business from countries like the United States because it is seen as not only a source for skilled labor but an opportunity to improve the economy. Brazil has steadily become a strong competitor in the IT offshoring sector for a number of reasons. Brazil is the 11th most powerful economy in the world and has a high-rated and technologically advanced telecommunications system and network services infrastructure. In fact it has been rated higher than even China in terms of reliability. Brazil also has many solid engineering schools, which are producing many quality tech graduates. Brazil also boasts a sophisticated banking sector along with an effective marketplace for IT software and support services. Real Estate is also quite affordable for corporate undertakings. Brazilian wages are typically 40 percent of those for the same...
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... As the world becomes increasing dependent on information technology (IT) products and services, the global IT services outsourcing industry has increased exponentially. Efforts to reduce costs and focus more on their core competencies have corporations outsourcing and offshoring many of their IT services. Offshoring of IT services have been growing at 40 to 50 percent a year. Brazil, like India, has stepped up to the challenge and has begun a campaign to build a strong international competitive position in the IT offshoring business. This researcher was asked to analyze Brazil’s intentions and actions regarding the international information technology sector using theories presented in International Business: The Challenge of Global Competition and provide recommendations to the Brazilian government and its outsourcing industry in order to improve their prospects for success in building a strong international competitive position in the information technology outsourcing business. Although Brazil is currently lagging behind India in IT outsourcing it is the 5th largest country and 11th most powerful economy in the world and with the right government infrastructure investments, Brazil could easily move up in its standings. Case Analysis 1. Use the theories of international trade and investment that have been presented in this chapter to help explain Brazil’s intentions and actions regarding the international information technology sector. The theory...
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...The rapidly changing technology makes it difficult for companies to be kept up to date with new process and advancements made. IBM has taken a leading role as a business process outsourcer and business transformation outsourcer. They have added value and managed business processes for companies located worldwide. With leading processes and lowest cost arbitrage they can successfully lead their industry by acquiring growing companies and continuously improving their processes. Can IBM successfully manage the acquisition of Daksh to achieve its on demand strategy? 1. IBM’s presence as a leader in providing end-to-end services 2. Improving BPO and trying to encourage customers to get BTO offerings. 3. Aligning IBM parent company with Daksh’s core values. Daksh is one of India’s largest independent business process outsourcing (BPO) service providers. IBM bought them out in 2004 for $170 USD. Daksh was praised for their effective leadership and strong operating model in BPO services, customer relationship management and finance and administration deliverables. Acquiring Daksh, it put IBM into the top five categories of service providers in India. IBM revenues in India had been $1.5 billion USD in 2005, which had been the company’s goal, $1 USD billion by 2002. Daksh held a third of Sprint’s BPO revenues and when IBM acquired Sprint, Daksh was handling some processes that were to be handled by IBM. IBM purchased Daksh at a premium price, even though some analysts say that...
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...that outsourcing is a major phenomenon on a massive global scale. The Information Technology field is a major contributor to global outsourcing. Outsourcing is currently a major social and political issue in the United States. At stake are thousands of jobs ranging from help desk operators to software programmers. The financial impact outsourcing has on the global economy is also a key factor. As time passed, companies recognized the need to cut operating costs, reduce personnel and save their resources. Hence, outsourcing came to the forefront as a way to stay competitive. Developing nations like India and China have come to light in recent years as they have a wealth of computer engineers and programmers who will work for low wages. Outsourcing has become such a common practice that it is now considered a benefit to the world economy, and knowing that outsourcing is a $400 billion a year industry and IT outsourcing is a vital part of the industry. A slump in IT outsourcing would mean a loss for the global economy andThe world must accept that outsourcing is a major staple to the world economy. However, with every step forward, come two steps back. Companies continue to outsource jobs overseas, leaving thousands jobless in the United States. Companies have emphasized costs cutting and profits rather than focus on the social change outsourcing has done to American Society and the economy. The era of technological outsourcing has essentially lowered the Information Technology...
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...Wal-Mart- A Case Study of MIS Strategy Walden University Wal-Mart – A Case Study of MIS Strategy Management information system is all about people using technology to work with information as they support the organization in its quest for a competitive advantage (Haag & Cummings, 2008, p. 29). Researchers and authors have discussed management information systems and technology over the decades. The concepts of competitive advantage, technology, outsourcing etc. have been theorized, yet discussion on the subject matter continues. While MIS strategy formulation has seen advancement, organizations are evolving and constantly changing their operating models. An example of such organization is Wal-Mart, the global retail giant. This research seeks to pin-point Wal-Mart’s key management information system strategy, while providing a deeper understanding of the organization’s management information systems strategy and its impacts. Further it aims to investigate knowledge management, e-commerce strategy, and the impact of database management which are aspects that can be incorporated into the MIS strategy formulation. To achieve this objective the literature survey was conducted to explore available published papers in the sphere of IS/IT strategy formulation. Considering that the applicability of information systems and technology is mission critical, the research design focused on the qualitative approach. The primary method of data collection was through semi-structured...
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...Organization information – Infosys Brief Introduction of the Infosys Infosys Limited (NASDAQ: INFY) was started in 1981 by seven people with US$ 250. Today, Infosys are a global leader in the "next generation" of IT and consulting with revenues of US$ 6.35 billion (LTM Q1-FY12). And it is now the largest IT Company in India with its headquarters in Bangalore (although it was started in Pune). And Infosys have several delivery centers all over the world. (Infosys Limited 2011a) Infosys defines designs and delivers technology-enabled business solutions for Global 2000 companies. Infosys also provides a complete range of services by leveraging Infosys’ domain and business expertise and strategic alliances with leading technology providers. Infosys operates in a number of business sectors from banking to retail, and its services tend to encompass end-to-end IT solutions which includes a whole bundle of added-value solutions from infrastructure to software engineering. What Infosys do Infosys offerings following main services: (Infosys Limited 2011a) - Business and technology consulting - Application services - Systems integration - Product engineering - Custom software development - Maintenance - Re-engineering - Independent testing - Validation services - IT infrastructure services - Business process outsourcing (BPO) Currently, Infosys mostly provide the IT based technology and consulting...
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... Cervus Equipment Corporation: Harvesting a New Future Master of Management Business Strategy Prof. Gerry Kerr November 3, 2014 Main Issue Cervus Equipment Corp, established in 1990s, is committed in acquiring and operating authorized agricultural, industrial and commercial equipment dealerships. Over the past 10 years, it has grown its business substantially. The board of directors is now looking for new growth strategy to reach their goal of $2.5 billion in revenue by 2020-triple in the current size. Cervus Equipment Corp mainly considered the opportunities and threats of expanding international markets and stepping in new industries for further growth. External Analysis PESTEL Analysis Political: based on the regulatory changes in the agriculture industry, Canada Wheat Board regulations encouraged (larger) farmers to market their product directly instead of the wholesaler in the supply chain. The political environment for acquiring businesses haven’t been mature in alternative countries like in New Zealand, Russia and Eastern Europe. Economical: global economy experienced slowdown. But customers’ unparalleled growth in a dynamic business environment made Cervus Equipment gain revenue and profits. With the development of farming technology, farming industry in Western Canada realized fast growth in 2012 and the commodity prices were historical high. The global agricultural machinery market is predicted to increasingly growth in the future. Due to...
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...revolutionary and helped its product and technology customers reach the market on average 20-25% faster. As requested by HCL, We are here today to identify potential opportunities and issues in both local and global markets and identify our potential solutions. The technology industry in India is growing rapidly with the continued expansion of outsourcing from North American and European countries. In 2011, with the help of its EOOTB solutions the HCL ERS division grew by 26% and business in pipeline grew by 86%. In this paper, we’ll focus on HCL’s EOOTB offerings. HCL knows that they must act fast as the success of (ETOOB) has led to many companies working on second mover strategies. They must reach new markets and demonstrate value to growing existing markets. After a thorough market analysis into existing industries and emerging markets, we have suggested focusing on creating value added solutions. To address new markets and become thought leader, we’ll focus on the importance of Value Based on Relationship. We will also facilitate more customizable solutions while also providing ‘out of the box’ solutions for our less complex clients. To gain (ETOOB) Provides a solution that is customizable based on vertical, market and business need. We plan to leverage partner base and set up localized sales offices throughout the globe to help better meet the needs of our clients. Introduction In today’s fast paced Information Technology industry, IT companies must look beyond...
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...exchanging goods and services between two people or entities. International trade is then the concept of this exchange between people or entities in two different countries. People or entities trade because they believe that they benefit from the exchange. They may need or want the goods or services. While at the surface, this many sound very simple, there is a great deal of theory, policy, and business strategy that constitutes international trade. Below are the different trade theories that have evolved over the past century and which are most relevant today. Plus the factors that impact international trade and how businesses and governments use these factors to their respective benefits to promote their interests. What Are the Different International Trade Theories? In more recent centuries, economists have focused on trying to understand and explain these trade patterns. To better understand how modern global trade has evolved, it’s important to understand how countries traded with one another historically. Over time, economists have developed theories to explain the mechanisms of global trade. The main historical theories are called classical and are from the perspective of a country, or country-based. By the mid-twentieth century, the theories began to shift to explain trade from a firm, rather than a country, perspective. These theories are referred to as modern and are firm-based or company-based. Both of these categories, classical and modern, consist of several international...
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...90% of its PCs directly to the final customer, largely bypassing the reseller channel that accounts for most of the world’s PC sales. This direct customer relationship is a key to Dell’s business model, and provides distinct advantages over the indirect sales model. Dell’s direct relationship with the customer allows it to tailor its offerings to customer needs, offer add-on products and services, and use the Internet to offer a variety of customer services. In addition, Dell’s PCs are built to customers’ specifications upon receipt of an order, giving Dell additional advantages over indirect PC vendors who must try to forecast demand and ship products based on those forecasts. Dell’s direct sales and build-to-order model has achieved superior performance in the PC industry in terms of inventory turnover, reduced overhead, cash conversion, and return on investment. Dell’s business model is simple in concept. Building PCs to order means that Dell must have parts and components on hand to build a wide array of possible configurations with little advance notice. In order to fill orders quickly, Dell has excellent manufacturing and logistics capabilities supported by information systems that enables it to substitute information for inventory. To manufacture its products, Dell coordinates a global production network that spans the Americas, Europe and Asia, combining in-house final assembly with heavy reliance on outside suppliers and contract manufacturers. Manufacturing of printed...
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...Demographic Complementarities and Outsourcing: Implications for India By: Mukul G. Asher Professor, LKY School of Public Policy National University of Singapore e-mail: sppasher@nus.edu.sg and Research Scholar Department of Economics National University of Singapore e-mail: amarendu@nus.edu.sg Amarendu Nandy May 2006 Draft – Not to be cited without permission The authors would like to thank anonymous referees, Sanjeev Sanyal, Amlan Roy, Anantha Nageswaran and R. Swaminathan for their useful comments. The usual caveat applies. _______________ This is a longer version of the paper prepared for IMRC 2006 conference on Global Competitiveness through Outsourcing: Implications for Services & Manufacturing, Indian Institute of Management (IIM), Bangalore, July 13-15, 2006. Abstract This paper analyses the implications of differing global demographic trends for India’s competitiveness in outsourcing and offshoring. It also briefly notes the implications of differing demographic trends among the Indian states. The paper argues that demographic complementarities with high-income countries provide India with one-time opportunity to sustain its growth rate and occupy all segments of global outsourcing and offshoring activities. India has used the labor cost advantage to gain reasonable market share in these activities. It however faces serious internal and external challenges in sustaining its international competitiveness, particularly with respect to labor cost....
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...however, critics claimed that globalization was created in the modern era as some scholars believe that the origin can be followed through a history of events. A perfect illustration of this is the economist Andre Frank, who asserted that there were traces of globalization in the third millennium B.C. during the imperialist age. Other scholars dispute that there were globalization economies that occur throughout the Hellenistic Era and Islamic Golden Age (Moore & Lewis, 2009). It is believed, by economists, that the spread of the Greek culture in the Hellenistic Era was an early practice of economic globalization. Globalization was influenced by culture with a diversity of food that was found in many different areas. The Jews and Muslims resulted in the globalization of crops, trade, knowledge, and technology in the Islamic Golden Age. Then, Christopher Columbus, in the Age of Discovery, discovered the New World in 1492 and a globalization of trade of gold, spices, and timber were all traded between Africa, Brazil, and Brazil. As an outcome, this presented international business centers in which there where enormous widespread exchange of animals, foods, and diseases amongst the Eastern and Western hemispheres (Moore & Lewis, 2009). Globalization is much more complicated in today’s society than it was back in the Middle Ages. According to the business magazine China Staff, “a typical...
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...from 1900 to 1967, after not, there is a graduate decrease to 3,000,000 until 2008. At the mean time, the median age of passenger car in US was Spiral upwards. Combine the two phenomenon, we can get that the automobile industry market is quite saturated and the demand fell down. Regard to the automobile manufacturing technology, despite less differentiation between manufacturers due to the converge of technologies and design, the technological progress was incremental and lead to the various segmentations in each country. Follow the two situations, there are 3 big issues were emerged. One was the deep demand of auto cars result in excess capacity. Another one issues was the high cost among the technological development. Last one issue was the lacking differentiation. However, it also offers automakers new product segmentations and market. For an insightful analysis, we need to look at more information in details. * Porter’s Five Forces First of all, we can get a comprehensive industry environment analysis through the Porter’s Five Forces. In terms of the threat of new entrants of the automobile industry, it requires high capital costs for potential entrants, as the manufacturers are all carry out the mass-production-scale. However, when a new entrant face with the current competitors’ scale economies, smaller manufacturers...
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...OPERATIONS MANAGEMENT REPORT ON 1 INDEX * Introduction ………………………………………………………………………………3 * 2 INTRODUCTION COMPANY PROFILE Volkswagen is a manufacturer of passenger and commercial vehicles. The company markets its cars under the following Brands: Volkswagen, Skoda, Bentley, Bugatti, Audi, Seat and Lamborghini. The company is headquartered in Wolfsburg, Germany and employs about 300,100 people. The Group operates 106 production plants in 19 European countries and a further eight countries in the Americas, Asia and Africa. Every weekday, 572,800 employees contribute to produce cars, to keep continuous relationships with customers, suppliers and partners in 153 countries. Volkswagen is a manufacturer of passenger and commercial vehicles. The company’s key products and services include the following: Products: Passenger cars Vans Light trucks Buses Pick ups Campers Brands: Volkswagen Audi SEAT Lamborghini Skoda Bentley Bugatti Some of the company’s data are given below: (* this data is for Volkswagen AG only) Revenues by Geography: Europe, Volkswagen’s largest geographical market, accounted for 44.1% of the total revenues in the fiscal year 2006. Revenues from Europe reached €46,211 million in 2006, an increase of 9.4% over 2005. Germany accounted for 27.2% of the total revenues in the fiscal year 2006. Revenues from Germany reached €28,544 million in 2006, an increase of 10.5% over 2005. North America accounted for...
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...Summary Friedman concludes that the world is flat on a visit to Infosys Technologies Limited in India, where he travels with Discovery Times. Friedman is impressed by the campus’s advanced technology such as the glass-and-steel buildings and large flat-screen televisions. Nandan Nilekani, the company’s CEO, tells Friedman that the playing field has been leveled; now countries like India can compete for global knowledge. Friedman realizes that the world is flat, which fills him with both dread and excitement. Friedman believes there are historically three great eras of globalization. The first was from 1492-1800, which he calls Globalization 1.0; the second was from 1800-2000, which he calls Globalization 2.0. Friedman argues that we are now in the midst of Globalization 3.0 is a period in which the world shrinks from small to tiny, flattening to such a degree that individuals can collaborate and compete globally. Friedman tells the reader that the purpose of this book is to understand how the world became flat as well as the implications of that development. Friedman spends a night in an Indian call center. Twenty-five hundred twenty-somethings work in this multi-floor facility; some are “outbound” operators, selling various items, others are “inbound” operators, tending to the customer-service needs of various companies. Friedman notes that there are about 245,000 Indians working in this industry, which offers them high-paying, high-prestige jobs. Employees are trained how...
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