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Wednesday, August 09, 2006

Book Rationale: Culture Clashes Harm Offshoring

Culture Clashes Harm Offshoring
In an Accenture study,
two-thirds of 200 US business executives said that miscommunication arising from cultural differences
has caused problems when outsourcing offshore.

Different communication styles
was identified as the key factor causing problems between onshore and offshore workers by over three-quarters (76 per cent) of the managers questioned.

Different approaches to completing tasks
, different attitudes toward conflict and different decision-making styles were cited as the other main cultural factors that frequently cause upsets when managing an offshore outsourcing relationship.

Kris Wadia, senior executive in Accenture's network of global delivery centres, said that the physical obstacles to offshore outsourcing such as telecoms and facilities have largely been resolved.

He said in a statement: "However, the soft issues, particularly cross-cultural communication, will continue to present the main challenges to realising global sourcing's full potential for the foreseeable future."

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