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Essay / Research Paper Abstract
This 6 page paper discusses the factors driving the internationalization of business, how IT can support business strategies, and what the issues are in developing global IT systems. Bibliography lists 5 sources.
Page Count:
6 pages (~225 words per page)
File: D0_HVITIntl.rtf
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information systems. Discussion Globalization has taken place in both manufacturing and service industries. According to a paper presented in 2007 at the College of Service operations conference, there are three
"meta-drivers towards increased internationalisation of services" (Netland and Alfnes, 2007). The three are "multilateral trade-agreements, development trends in ICT and the increased presence of global networks" (Netland and Alfnes, 2007).
Firms would often follow clients into new foreign markets (Netland and Alfnes, 2007). Today, however, more service firms are proactively seeking clients abroad and the reason is simple: professional services
are vital to the Western industrialized economies, and are growing faster than the manufacturing sector (Netland and Alfnes, 2007). In addition, because the "professional service products is an input into
other service- or manufacturing firms production chains, innovations in service processes is likely to positively affect other industries as well" (Netland and Alfnes, 2007). Professional services in this context is
understood to mean such things as IT services, R&D services, engineering, management consultancy, legal services, personnel recruitment and similar services (Netland and Alfnes, 2007). Services are distinguished from goods by
several factors, including the fact that they "have a high level of people commitment relative to equipment, they demand high people interaction, in most cases face-to-face [and] they have relative
long interaction times and high level of discretion" (Netland and Alfnes, 2007). They are also typically characterized by "process rather than product" (Netland and Alfnes, 2007). While the service sector
may have outpaced the manufacturing sector, the latter has been growing internationally. Factors in its growth include economic development, lowering of barriers to international mobility, and the development of technology
(Leontiades, 1985). Economic development has been "unparalleled" in the West, and in many developing countries as well (Leontiades, 1985, p. 5). This development has led to an increased demand for
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