Global sourcing is a great strategy used by many IT organizations.  It can help increase productivity, reduce costs and create a better focus on core business.  Whether a CIO decides to send work to India, China or another offshore location, it is important to understand the culture of that location.  One article posted on NetworkWorld.com regarding India even suggests that “North American companies could see better results with India-based outsourcing engagements if they take culture into consideration.”  The potential for conflict and misunderstanding is high when the two cultures clash. 

Understanding Cultural Differences
Many companies experience a cultural shock when working with vendors in other countries.  Often the work ethic between the buyer and vendor are quite different.   For example, in India, workers are focused on process and procedure, making sure they follow the appropriate steps.  American based companies on the other hand, expect independent thinking and initiative from employees.  Employees at U.S. companies also are used to working with set deadlines and can adapt how they approach the work, if they are concerned about not getting the task completed in time.  Indian employees many times will not stray from the established workflow and may consequently miss deadlines because the work to be completed is viewed as more important than time constraints.

In addition to work habits, IT managers should also be aware of other cultural differences.  For instance, in Asian countries, especially Japan, Korea and China, the people are very proud of their heritage.  They could be offended if someone brags about the American culture or puts down their own culture.  Many Asian workers do not understand slang that is commonly used in the United States and do not comprehend the majority of American jokes.  It is also considered rude to comment on how good an Asian businessman speaks English.  In the Asian culture, it is expected that an educated businessman will speak English well.

IT managers should be familiar with how relationships are viewed in the global sourcing provider’s country.  In India, relationships are commonly put before business and Indian managers might place a greater emphasis on intrapersonal relationships before discussing business.  In the United States, it is typical to do a quick introduction and then to immediately start talking about business matters, while keeping personal subjects for later.   

Addressing Cultural Differences
Problems stemming from cultural clashes can be avoided if managers address these differences immediately.  Employees from the IT organization should be trained and well-versed in the culture of the global sourcing provider to create a more efficient and profitable outsourcing engagement.  An expert quoted in the NetworkWorld.com article stated that “cross-cultural training would help American companies train onshore and offshore staff how to better collaborate and work toward common goals.”

A&E Consulting helps companies weigh the benefits of global sourcing and assists with choosing the right outsourcing partner.  The consulting firm will also oversee the first outsourced project to ensure a smooth transition.

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