Business briefing series: 20 issues on outsourcing and offshoring
Outsourcing to India - Key Cultural Issues
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Transcript of Outsourcing to India - Key Cultural Issues
Thinkglobalgrowth.com
Outsourcing to India: Key Cultural Issues
Keith Warburton – CEO TGG
Thinkglobalgrowth.com
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Format• TGG – what we do• Background comments• Hierarchy• Metrics – help or hindrance?• Attrition and its impact• Expectations around initiative• Over assumptions• Communication• Contact Details for Outsourcing to India Training
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TGG• Dedicated to helping clients work more
effectively across the boundaries of geography, market conditions and culture:– Global Outsourcing Training– Global Cultural Awareness Training– Global Virtual Team Training– Global Supply Chain Management Training– Global Market Entry (UK outbound & inbound)
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Background comments• We have worked on dozens of large outsourcing projects
where work has been transitioned from the US or Europe to India
• These projects have spanned multiple sectors• We have worked with teams in both US/Europe and in India• Regardless of sector, the interpersonal problems always seem
to be the same – and mainly cultural• These cultural differences are a challenge but can be
overcome• Good quality training is essential• This SlideShare addresses some of the key issues
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The impact of hierarchy • India is a hierarchical culture – both in terms of general
society and also corporate structures• Flat systems are difficult to introduce into India (it can be done
but it is difficult)• Many Western companies impose a flat system and this leads
to difficulty• Indians are aspirational and want quick promotion• If the flat structure doesn’t allow quick promotion many
people will leave• Choosing an appropriate strategy for your structure from the
start is vital
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Metrics – help or hindrance?• Everything is measured and the standards are often higher
than the home teams were previously subjected to• If metrics are not met, ‘punishments’ are meted out• This causes three problems:1. Home teams lose confidence in the India team as they are
seen to have failed2. The India teams feel they have no promotion prospects as
they have failed (and maybe leave)3. Both sides end up arguing over the metrics instead of
improving the situation
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Attrition and its impact• Attrition rates in India in outsourced operations are
notoriously high• This causes major disruption – especially if the work requires
either deep corporate or sector knowledge• The main causes of attrition are:1. Aspiration – people want quick promotion but flat structures
don’t deliver this2. Boring work – the India workforce is often highly educated but
the work which is outsourced is pretty monotonous3. India is relationship oriented and outsource workers often feel
like commodities which is counter-cultural
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Expectations around initiative• Western teams expect Indian colleagues to use their initiative• Indian colleagues expect to be given more direct and precise
instructions• This is a major cause of frustration on both sides of the
equation• If you fail to address this fundamental issue, you are building
tremendous inefficiencies into your system• Will your home teams change their instructional style or will
the Indian teams need to adapt to meet the expectations of Western colleagues?
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Over assumptions• Home teams often just assume that Indian colleagues will
automatically know how things work in the US or the UK• They assume that Indian colleagues understand the context in
which the organisation is working in the home countries• This is obviously an over-assumption• The average age of colleagues in the outsource industry in
India is very young.• People are technically gifted but often commercially
inexperienced• Don’t assume – teach them the things you think they need to
know
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Communication• Indians often tell you what they think you want to hear• Therefore, don’t tell them what you want to hear• Indians rarely say ‘no’• Therefore, don’t ask ‘yes’ or ‘no’ questions• If things don’t happen as your expected, go back and inspect
your instructional style• Were your instructions concise, precise and comprehensive? If
not you know where the problem originated• Indian colleagues are relationship-oriented so talk to them
about non-work related matters as well as business as usual
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Contact Details for Global Virtual Team Training• TGG have an extensive suite of proven training
course which can help your India outsouce operation work better
• These courses have been run all over the world• For further details on how we can help your
organisation please contact us at:
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Thank you for visiting – Why not try www.thinkglobalgrowth.com
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