There are several reasons attributed for the failure of an outsourcing venture. Ranging from not meeting targets to poor quality or security, the reasons generally link to numbers and standards. However, not many bother to think about the importance of communication and speaking a global language that will be sensitive to cultural differences and different work environments. People skills are underestimated and at many times, especially in cultures like India where business culture is relationship oriented, these are the skills that can make or break an overseas venture.
Generally companies that outsource focus on cost, quality, production, security, processes and all the other business and technical details that are involved. But how exactly are global clients communicating their needs and how do they relate with their outsourcing partner? Those who outsource tend to underestimate the importance of relating to their partners within a cultural context. Though globalization has erased boundaries there are still differences in the way people around the world work and relate to each other. If you are from a work culture that is open, straightforward, and direct it is difficult for you to understand that acting in the same manner with partners who communicate more indirectly and depend more on subtlety could possibly lead to misunderstanding, miscommunication, and a failure in expectations.
I read a summary of a book called Working Globesmart, 12 People Skills for doing Business across Borders, by Ernest Gundling. It was interesting because I have always believed that "soft" skills are as important if not more important than technical skills because all successful relationships have to have elements of trust, openness, honesty, understanding, compromise, discussion, etc. These elements can come only if both parties mutually respect the work culture of the other and devise certain standard practices that are sensitive to the differences in both cultures.
While reading through the summary there were several interesting examples of how managers or team leaders assumed certain things, not always consciously, based on their own working culture and ended up offending or misjudging people. One does not realize that our culture is so deeply rooted in us that 'acceptable' for one is completely 'unacceptable' for another. And these 'acceptables' are details that we generally take for granted. A good example is one where Gundling quotes from a speech given by an American executive who had been newly assigned to lead an Asian Pacific Sales Operations Team. The executive gives what he believes to be a warm and frank address to a new team, but Gundling illustrates how he negates cultural sensibilities in the words he chooses. He speaks about his wife and him being happy to be there, how well his company has been doing, about profits and shareholders, and other things that would be relevant and fitting in his own work environment. However, Gundling points out that the executive may have insulted or offended the team he was addressing as they may have wondered why he was sounding like he was boasting of his accomplishments in the company, why he did not acknowledge the success all of them had had, what his wife had to do with anything, ann referring to Asia as one place. These are details the executive may have taken for granted, but are important once you start interacting with people from other cultures.
It is not incorrect that at many times expectations are not met and deals fall through, but it is important to analyze the underlying reasons for why expectations were not met. If communication is the problem then both parties have to analyze why this happened. One cannot be arrogant and presume everyone will understand the way you work and adjust to it. Listening and observing other forms of communication, especially non verbal, is key to establishing good relations. This will lead to mutual respect and devising standards that integrate "workable" components of all the cultures involved. It is naive to believe, Gundling says, that your company will work in the way you are used using one system while your subsidiary offshore will work in their own way using another system. In a global business environment finding common ground is important for a successful business relationship.
Generally companies that outsource focus on cost, quality, production, security, processes and all the other business and technical details that are involved. But how exactly are global clients communicating their needs and how do they relate with their outsourcing partner? Those who outsource tend to underestimate the importance of relating to their partners within a cultural context. Though globalization has erased boundaries there are still differences in the way people around the world work and relate to each other. If you are from a work culture that is open, straightforward, and direct it is difficult for you to understand that acting in the same manner with partners who communicate more indirectly and depend more on subtlety could possibly lead to misunderstanding, miscommunication, and a failure in expectations.
I read a summary of a book called Working Globesmart, 12 People Skills for doing Business across Borders, by Ernest Gundling. It was interesting because I have always believed that "soft" skills are as important if not more important than technical skills because all successful relationships have to have elements of trust, openness, honesty, understanding, compromise, discussion, etc. These elements can come only if both parties mutually respect the work culture of the other and devise certain standard practices that are sensitive to the differences in both cultures.
While reading through the summary there were several interesting examples of how managers or team leaders assumed certain things, not always consciously, based on their own working culture and ended up offending or misjudging people. One does not realize that our culture is so deeply rooted in us that 'acceptable' for one is completely 'unacceptable' for another. And these 'acceptables' are details that we generally take for granted. A good example is one where Gundling quotes from a speech given by an American executive who had been newly assigned to lead an Asian Pacific Sales Operations Team. The executive gives what he believes to be a warm and frank address to a new team, but Gundling illustrates how he negates cultural sensibilities in the words he chooses. He speaks about his wife and him being happy to be there, how well his company has been doing, about profits and shareholders, and other things that would be relevant and fitting in his own work environment. However, Gundling points out that the executive may have insulted or offended the team he was addressing as they may have wondered why he was sounding like he was boasting of his accomplishments in the company, why he did not acknowledge the success all of them had had, what his wife had to do with anything, ann referring to Asia as one place. These are details the executive may have taken for granted, but are important once you start interacting with people from other cultures.
It is not incorrect that at many times expectations are not met and deals fall through, but it is important to analyze the underlying reasons for why expectations were not met. If communication is the problem then both parties have to analyze why this happened. One cannot be arrogant and presume everyone will understand the way you work and adjust to it. Listening and observing other forms of communication, especially non verbal, is key to establishing good relations. This will lead to mutual respect and devising standards that integrate "workable" components of all the cultures involved. It is naive to believe, Gundling says, that your company will work in the way you are used using one system while your subsidiary offshore will work in their own way using another system. In a global business environment finding common ground is important for a successful business relationship.
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