Addressing Cultural Differences In Global It Sourcing

Global IT sourcing is an effective strategy utilized by many companies. When global IT sourcing is incorporated into the development process, it can help raise productivity, lower costs and free up resources and time for core business. Whether an IT executive chooses India, Asia or another offshore location for global outsourcing, it is crucial to understand the culture of that destination. Better results can be realized in global outsourcing when culture is taken into consideration. The potential for complications and misunderstandings is high when cultures clash.

It is not uncommon to experience a culture shock when working with IT providers in other countries. Frequently the work ethic between the IT company and vendor are very 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. U.S. employees are used to working with established deadlines and can easily adapt how they approach the work, especially if there is concern about the task being completed within the specified timeframe. Indian employees on the other hand, often have a hard time straying away from the set workflow and as a result, they sometimes miss deadlines because the work to be completed is viewed as more important than time constraints.

There are other cultural differences in addition to work habits. For example, in Asian countries, especially Japan, Korea and China, people are extremely proud of their heritage. If someone begins to brag about the American culture or puts the Asian culture down, it could be considered offensive. Most Asian workers are unfamiliar with the slang that is used in the United States and do not understand 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 executives need to understand how relationships are viewed in the vendor's country. In India, relationships are usually put before business and Indian managers might place a greater emphasis on intrapersonal relationships before discussing business matters. In the United States, it is considered normal to conduct a brief introduction and then immediately move on to business matters, as personal subjects are saved for later discussion.

Complications resulting from culture clashes can be avoided if IT executives address these differences right away. U.S. employees should be trained and well-versed in the vendor's culture, which will create a more successful outsourcing relationship. Cross-cultural training can also help U.S. companies better collaborate and work toward common goals with IT vendors.