Outsourcing to India - Key Cultural Issues

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Outsourcing to India: Key Cultural Issues

Keith Warburton – CEO TGG



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


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)


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


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


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


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


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?


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


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


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:

[email protected]

mailto:[email protected]


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Outsourcing to India - Key Cultural Issues