Outsourcing Stunned By Cross Cultural Mis-Understandings

It's very important for businesses to understand the cultures and different ways of working of any potential offshore destination before moving their IT services there. Thats according to IT experts of silicon CIO. Forum as part of the panel debating the question Outsourcing: your shortcut to global talent. Rob Fraser, ex-CIO of Boots, said cultural difference is something you have to understand to get the most out of off- shoring.

Among the companies in the US that offer cross-cultural training, however, this figure was marginally lower at 60 per cent.

According to the recent survey of Accenture, it is found that 67% of the U.S. business executives are trapped in miscommunication as a primary reason of outsourcing problems. It is further mentioned by the respondents that different approaches to complete task, different attitudes toward conflict and different decision- making styles. In the same way, more than half of National Outsourcing Association (NOA) members indicated that cultural issues presented problems in offshore problems in offshore outsourcing deals. Such differences are especially problematic in multi-sourcing arrangements where companies may find themselves dealing with a veritable United Nations of management styles.

While offshore outsourcing remains a popular strategy with large corporations, a growing number of small and medium-sized businesses are instead choosing to outsource IT support and other business processes to onshore providers.

In conclusion it may be said that as offshore outsourcing matures, firms are realizing the impact that cultural differences can have on a business relationship. In the early stages of offshore outsourcing, the cultural fit wasn't such a big issue because people were just looking for cheap labor. But as those relationships evolve, what businesses eventually realize, say observers, are that while they're busy looking at the bottom line for the savings, the business is tied in knots over cultural clashes.

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Source: www.isnare.com