Company Cultural Differences in Outsourcing

Outsourcing used to be something that only larger3 potential partners in India a service, send at least on
companies did. A call center or software developmentperson to India for at least 2 weeks so one employee
center for Dell or IBM was considered the norm,can spend at least 3 days on each site to get a real
Today mid-sized companies are taking advantage offeel for how the partner does business.
outsourcing. By being selective on what theyInterview employees from the partner sites.
outsource and to what partner they select theseFinally, consider bringing the potential managers of the
smaller companies are expanding into the outsourceservice that you are outsourcing to one of your team
world.building exercises. There is probably no better way for
Successfully outsourcing is not as simple as negotiatingthese manager to see your company culture than to
a contract and letting the service run. The success ofshare a team building exercise with you.
an outsourcing project is highly dependent on theMind The Gap
relationship developed between the the companyCultural gaps exist.
outsourcing and their partner.To lessen the impact of the culture gaps, make sure
A recent report I read stated that over 65% ofyour contract clearly states that changes in service
outsourcing relationships fail partially or totally. themanagers require hiring company approval. Having
primary reason these deals fail is due to a lack ofcompleted the vetting process will serve no purpose if
understanding between the outsourcing company andthe people you hire change the key personnel.
they partner, as well as poor management.Important changes could be equivalent to never having
The cultural differences that cause these relationshipsdone the prior steps.
to fail are not simply because "they" are different thanIf you are outsourcing a service to your own country,
"us". Each company has its own culture and theseassign an experienced employee from your company
company cultural ideas and beliefs have to be taughtas a site Account Manager (AM). this AM would be in
to the partners just like they are taught to newsite during normal working hours and report only to the
employees. And just like with new employees thesehiring company.
values have to be continually reinforced.If you are outsourcing to distant shores, have the AM
If you have a company that believes working 9 to 5 ispresent full time if possible. If you can't, or choose to
enough you will have one type expectation of yournot, do this have your AM on site for at least one full
partners. If your company believes that working on aweek each quarter.
problem until it is resolved regardless of the hours, thenOnly with a person from the hiring company present
you have to make sure that your partner will accepton site can yo have a real understanding of your
to work in the same manner.partner and how they do YOUR business.
When Culture CollideMeet Client Expectations
To make sure that work culture don't collide (or collideIn all cases your partner must supply ongoing training
with a smaller impact) there are several steps that yourelated to the products and services they are
can take.supplying and supporting. If the partner is in a country
First, do a formal Request For Proposal (RFP) for anywhere they don't speak the same language as your
service that you are outsourcing. In addition to definingclient, language courses are also a requirement. If the
the services that you want supplied, include a detailedlanguage level is sufficient, language courses may still
section on the reporting details that you require. Somebenefit to work on accents.
cultures want to avoid confrontation and place a highEvery service provider must have a clear
vlue on "saving face:. Make sure that the reporting youunderstanding of your client expectations.
receive will include reference to the results from clientsRealistic expectations must be defined in the original
that were not satisfied with the service that theyRFP and measured against the Service Level
received.Agreements (SLA). An SLA can include any form of
Second, in the RFP, include a section that describesmeasurement that you decide is required. This can
your company culture and your values. An outsourceinclude the maximum time a client can be on hold, the
partner must adapt to your values because the clientmaximum time to complete a call or service, the
who speaks to your partner will only associate goodmaximum level of clients that define themselves as
or bad results with your company - not the partner. Todissatisfied with the level of service that they received.
a client, a partner does not exist, the client is dealingThis last is often recorded by asking the client to
with your company.complete a survey after the service has been
Third, when you have a shortlist of potential partners,delivered.
go to their site. You need to get a real feeling for theThis is just a beginning on how to overcome some of
company and how they operate. If you are consideringthe cultural differences in the outsourcing process.