Read the below and complete the graph as requested.

A multinational headquartered in continental Europe establishedthe following strategy:The IT-services division serving domestic clients, located at their headquarters, must become more cost efficient.Managementembarked upon a program to transfer the whole bundle of IT-services, including the support for the Enterprise Resource Planning systems (SAP R/3), to a low-wage country(India).

Theareas of the organization which were impacted by thistransfer were:

1. First-level support for SAP R/3 users (employees of external customers): When a SAP user encounters a problem with the system, they call the helpdesk for support. The helpdesk usually issues a "ticket" registering the call and describing the issue. The user receives feedback on the solution to the problem as quickly as possible.
2. Second-level support for SAP R/3: If the problem the user has encountered is more complicated to solve, the "ticket" is passed on to second-level support personnel who are responsible for fixing the problem as soon as possible.Second-level support informs first-level support of their solution.First-level support gives feedback to the customer about the problem resolution.

Managment decided to transfer both levels of support from headquarters to the wholly owned subsidiary in India in an attempt to quicklyreduce fixed costs. This was done in a series of international projects which were all part of the overall cost reduction program.

The Indian subsidiary had the task of recruiting employees who had the required language competencies since customers in continental Europe wanted to continue to talk to SAP support personnel using their local language. The project managers of the sub-projects were assured by the Indian subsidiary that feasibility in terms of personnel was given: employees with the right skills, including language skills, were available.

Each manager of a sub-project had the target of moving the activities and tasks within eight months to India. The continental European employees were transferred to a domestic spin-off of the multinational with a 16% lower salary and the prospect of being laid off after the transfer was complete.The time estimate for the complete transfer was two to three years.

After a while, customers started to call staff at the new spin-off in Europe, complaining about the support they had received from India:

• One client got really impatient with the fact that his employees first had to spell their names up to ten times before they were allowed to describe the problem. The Indian counterparts frequently could not understand them. This was a mutual problem, as the customers also had difficulties understanding the Indian helpdesk personnel.
• Another corporate customer said that his employees were receiving tickets which could not be understood.Translating one ticketback to English, for example, read: "Acknowledging running figures on the screen".
• Another company complained about a lack of support from India. They had the impression that they were not taken seriously by the Indian helpdesk. In a very friendly manner, the helpdesk personnel said: "Yes, Madam/Sir ... This is very unfortunate. Does the system work now? ... No, I hope you are OK. Yes, we certainly will take care of it ...". Many times, however, customers didn't receive feedback whether the problem was resolved or not. There were also strong doubts regarding the technical capability of the Indian helpdesk.Some problems were not resolved at all, or resolved very late. The process usually needed to be followed-up by the customer, which was a nuisance.
• Yet another client pointed out that the helpdesk came back a severaltimes to ask for screenshots. This was perceived to bea waste of time and not following a standard procedure. Moreover, the request for screenshots frequently came only after one or two days, leaving the users with a dysfunctional system in the meantime.

The employees at the spin-off in Western Europe who were not yet laid off were unhappy as they sometimes had to work 14 hours a day to fix the problems their 12 Indian colleagues could not resolve. In addition, they received all the customer complaints.

After the first year, management was alarmed when some corporate clients changed their supplier for IT-support. The program manager determinedthat more training for the Indian staff was needed.Training programs for the Indian staff were arranged, mainly in Continental Europe.For two months, the Indian employees were trained in application management and with the different modules of SAP. The effect of the trainings was not as positive as expected. A consultant found out only by coincidence that many of the Indian trainees did not sufficiently understand the English spoken by the Western European trainers with their thick local accents. In order not to cause any embarrassment, no feedback on this matter was provided by the Indian subsidiary.In only one sub-project, this resulted in an additional training cost of roughly 81,600 Euros.This was a comparably small expense relativeto the prospect of losing severaladditional customers.Still,this was an unbudgeted, additional cost.

The program manager realized that more non-budgeted costswere neededto address:

• TurnoverinIndian support teams was at about 20% each year, so training measures needed to be carried out on a continuous basis.
• The salary of the Indian support staff had to be increased by an average of 18% annuallyto attractand retain staff for at least one or two years.
• Training in the local language of the European headquarters was necessary as hardly any personnel existed who possessed adequate language skills.
• More staff from headquarters needed to be sent to the Indian subsidiary to facilitate knowledge transfer, but also bolster capacities in India.Due to an economic boom, itwas increasingly difficult to hire the necessary number of people in India.

Another headache was security. Some temporary staff were "smuggled" into the Indian subsidiaryto help out without undergoing the proper hiringprocedures.They were also granted access to the Intranet and other corporate electronic data.The problem was uncovered by a customer in Europe who had insisted that only internal staff would support his company. The incident revealed security gaps for the multinational as a whole. In addition, passwords were shared and passed on within the Indian subsidiary resulting in a loss of transparency and control regarding who was responsible for which changes in the SAP system. This posed a threat to quality.

Having laid off most of the staff at home, the multinational had difficulties taking back responsibilities and tasks from the Indian subsidiary. There were no short-term fixes to the above mentioned problems either.The whole program looked to be doomed. What had they done wrong? After all, other multinationals based in the US or UK have transferred parts of their business successfully to India.

European Multinational Risk Register Version [1.0] [Enter Current Date]

Risk Identification	Risk Analysis	Response Planning	Monitoring & Control
Risk ID	Risk description	Probability	Impact	Contingency	Owner	Priority	Status
1	Sample risk description	High/Medium/Low	High/Medium/Low	Sample contingency response	Team Member	High/Medium/Low	Known/Triggered/Resolved/Retired
2
3
4

An analysis of the risk management process for the European multinational is:

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