Recognizing Cultural Differences in Outsourcing

Successful Outsourcing

Cultural Differences Exist

World Values Survey map of world cultures 2010-2014

• The growth of the Internet, social media, entertainment, and connectivity have changed the world… • But people still see

the world through their own cultural lenses

• Culture takes a long time to change• In some ways, greater

connectivity has only increased stereotypes

But – For OutsourcingWhat does this mean?

• For a business, that wants to outsource software development – why should you care?– Software development is a just a form of work– Technology is becoming ubiquitous throughout the

world– If a team has the skills and experience necessary to

do the work, do cultural values really matter?– If cultural values could interfere with our

communication and trust during work, especially for agile teams – it could matter a great deal

Imagine a Scenario• You:

– A company in the US Plains region needs to have software developed

• Your Outsourced Team– Company in central Mexico

• How much does each side of the business situation really know about the cultural values of the other?– What will not knowing do to

their assumptions, their ability to work together as a team?

What is Our Experience?• US Company

– Several people in the company have traveled to resorts in Mexico

– Read news reports of sensational events in Mexico or travel guides

– Speak little to no Spanish• Have a very limited view of

social interactions and culture in Mexico– Have not spent time in working

communities or outside “tourist zones”

• Mexican Team– Have relatives in the US, some

have visited– Consume US-based

entertainment, some news media

– Speak, read and write English• Generally have not worked in

the US for an extended period of time. – Have an outsider’s point of

view on culture in the workplace and teams

What Do We Really Know?• In general terms

– People in the US are less accepting of inequality in their interactions and have a higher level of individuality

– Mexico and the US are closely matched in tendencies to masculine traits, but Mexico has a much higher propensity to avoid uncertainty

– The two countries are very close in their long term orientation, but Mexico tends to be more self-indulgent

• However, if we are not careful, these results become another stereotype

• These are only generalizations from surveys– They are not measures of

individuals on the team or the team as a whole

Hofstede Center

Understand the Cultural Onion

• Visual culture clues are on the surface, we can see them easily

• Norms and values are underneath, the rituals of daily life

• The key beliefs that drive behavior are much deeper

Or Perhaps the Cultural Iceberg

Photo Credit: Indiana Department of Education - Language Minority and Migrant Program

So?

• In business, especially in technology, we generally do not have the time or resources to drill down to a perfect profile and team – A “deep dive” isn’t going to happen and it may not be

beneficial anyway. Diversity can give us more if we can manage it.

– It is more important to know how to bridge cultural divides than it is to find something “just right”• Cultural norms, the deeper values of a society do determine how a

person interacts, builds trust, becomes a part of a productive team, but with understanding and common goals, differences can be bridged

Back to Best Practice

• Don’t assume you understand culture of a new team.– Generalizations, surveys, etc. can only give you a sense of

where to start. Each team has a dynamic of its own• Getting teams together, face-to-face, is critical in

breaking down cultural divides quickly– No team is going to simply change their cultural profile but

they can alter their awareness and responses with interaction– Direct communication and interaction, in both work and

casual situations, opens up personalities and removes stereotypes• Real, dynamic understandings of individuals emerge

How?

• Review our article:– Build Trust for Your Dev Team Quickly

• (Slideshare) – The tools and best practices outlined are tuned to bringing

teams together, and bridging cultural issues• Finding a team that meets your objectives for skills and

experience, in the right location, and at a reasonable price – is enough to do. Don’t burden yourself by trying to match a cultural profile– Build/maintain team trust, understanding and productivity.

Don’t expect it to appear magically

Consider the Vendors with Experience

• It may seem obvious, but if you don’t ask about a vendor’s experience in handling the development of new teams, you won’t know– How do they handle team development and project startup? – How important is face-to-face interaction in their approach? Will it

help improve productivity and lower risks?• Nearshore is an advantage – there is more basic understanding

and opportunities for face-to-face and real time interaction. Scio provides nearshore development teams to our clients in North America, with the elements necessary for success, including approaches to fit your situation. Our teams have less geographic distance and more working hour overlap than offshore – and that lowers issues from the start.

We would be glad to discuss how we can help with your next project.