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Understanding cultural differences in outsourcing

In a recent study by Accenture, cultural issues were listed as a major reasons for the problems of outsourcing deals, and over half of the National Outsourcing Association (NOA) members surveyed recently also said that cultural differences are still a problem in outsourcing deals.

Two factors that are rarely present in any national project, but can not be avoided when you go offshore, are geographical distance and cultural differences.

The geographical distance could be a factor in terms of an evolution unfavorable time zone differences, but today most offshore service providers ensure that their working hours are adjusted to make sure you have several hours day overlap in common.

However, the impact of cultural difference is something that should not be overlooked when going offshore. Depending on the location one on the offshore outsourcing, cultural differences can range from mild if near the coast, for example, in Ireland or Eastern Europe to a culture shock offshore real if low-cost countries in Asia such as India or China.

So far India has been the most favored offshore outsourcing destination and remains a player dominant in this field. Service providers in India have matured over the years in providing offshore outsourcing services and are able to handle differences culture when working with clients across different geographies. However, an area that has so far not been a major focus is to educate its customers on these differences cultural. Unless customers to understand these cultural differences, it is difficult for them to understand and appreciate. For example, if you're in a meeting with a service on India supplier, you will notice that the highest-ranking person in the service provider team will lead the discussions and their coordinates and speak only subdelegados when your boss asks you to do so. In the UK business culture sub-ordinates can interrupt a conversation at any time if they have a valuable contribution, but if this protocol followed in India would be considered disrespectful.

Another typical observation is that Indians are never comfortable saying "No", especially if you are a customer. For example, if you go to a store to buy a shirt and realize that the store is about to close, you can still walk (even after the box is closed) and the warehouse will ensure that their needs are being met, even if it means they have to keep the store open by other 30 minutes. In the stages of IT projects, project members will not mind compromising family commitments just because they can not or will not say "No" to their customers.

Most Indians do not feel comfortable giving bad news. They believe they must give people good news and when it comes to poor news, or are very quiet or find alternative ways to communicate the bad news. It is an important aspect to understand how many customers get "surprises" on your project on issues related to a later stage and keep wondering why the issue was not highlighted during the weekly review meeting.

So the key in the offshore outsourcing is not just finding the right projects and the right people to provide such services, but the ability to build within your team to work in a culturally diverse environment. While this may seem very difficult, the solution is simple. Most of the clients organization can successfully bridge cultural differences by applying the following tips.

1. Training – Most offshore service providers have special "Western cultural orientation "programs for members of his staff in offshore projects. These training programs help to understand the culture of a specific country especially business culture. Along similar lines, it is important for customer organizations to establish a training program to educate its own staff in the culture of fate at sea. This can be achieved by

• The identification of an internal team member who has experience with both cultures. For example, an organization can have a person of Indian origin who has spent considerable time in India and then moved to his country. In general, a person who has worked in India for a couple of years and then moved to his country (and went from 5-6 years there) would be the most suitable candidate. This person would be able to educate your team on cultural differences and can act as a lead trainer.
• Enlist the services of a consultant specialist at sea. Offshore consultants have great experience working with different cultures and a multicultural team that can provide training for members on your computer. Most of these offshore advisers understand cultural differences in different stages of outsourcing and are therefore an ideal choice for these training programs
• Request that your service providers to conduct training programs specifically tailored to their computers. This could also be useful to some degree, and has its own limitations based on the experience of the vendor to do business in that geography in particular. In addition, Ideally, cultural training should be carried out prior to engaging with a vendor so that from the first day of the interactions, your team is able to draw on their expertise about the business culture of the provider organization.
• As the corporate culture of each company is different, it is important for you can educate service providers about your company's culture – the attitudes, thought patterns and behavior. Many companies ignore this, but this is an opportunity to improve productivity and experience of its teams on the ground-sea.

2. Visit offshore location – This is very useful and provides team members an opportunity to experience what the offshore location is how people communicate and how they behave, work, social relationships etc. However, it is not possible for an organization to send all your team members to the location at sea, as it would be an expensive proposition. But sending people different (if possible) every time there is a requirement for someone to travel it would prove useful. Also make sure that people who have visited the top Tues location of their experiences with their colleagues and become part of the training program to maximize use of their experience.

3. Organization Cultural Events – As mentioned earlier, most offshore service providers have training programs for their staff. In addition, most of offshore service providers today celebrating events such as Valentine's Day, Independence Day (USA), Halloween, Christmas, etc to educate their teams. Along similar lines, clients can organize events (with the help of advisers on the high seas, the sellers) that are important in the offshore location. This will give the client computer a learning opportunity.

4. Films such as a training guide – English films are all over the world and as a result, many people around the world to be educated as well as entertainment, these movies. Companies can also adopt a similar approach to learning by encouraging their people, that are involved in offshore projects, to see local films / documentary (with English subtitles) locations at sea.

Advice above may not be a comprehensive "To Do" list to close the cultural gaps, however, is a guide to help team members understand and to appreciate cultural differences to come through while working on a daily basis with the teams from the coast.

In summary, projects offshore have special issues that managers should be familiar with, as cultural diversity. The long-held belief that technical skills are sufficient to ensure the success of the project has proven to be wrong every day in the field of global experience of multicultural teams in the offshore outsourcing environment. To ensure the success of a multipurpose offshore project, the collaborative approach to bridge the cultural differences is very useful. By learning from others experience reducing the cultural gap at an early stage can help avoid the cost in terms of intercultural communication errors, delays in projects, conflicts equipment and overall productivity.

About the Author

Akshay Upadhye is a Senior Consultant with Alsbridge plc, the award winning advisors on outsourcing, shared services and offshoring.

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