Software Development Outsourcing

Introduction

Outsourcing IT and software development is becoming commonplace. After all, there are numerous advantages including lower costs, additional expert resources, faster product development, faster time to market, and flexible human resource allocation.

However, there are unobvious differences in work methods and habits due to varied cultural ways of perceiving and relating to events and people. Accommodating these differences can significantly influence the building of productive relationships and make outsourcing a smoother process. For example, China, India and the Philippines engage in a process-oriented culture wherein the main focus is on structured processes and well-defined instructions. Work proceeds comfortably in Waterfall and V-model processes. On the other hand, a more dynamic Eastern European culture is closer to Western tradition which tends to accept flexibility and pro-activeness using Agile methodologies and direct communication.

Why does this occur? And what are additional obstacles besides the obvious technical issues?

Barriers to Communication among Different Cultures

When a company decides to outsource work, it usually chooses to work with an organization of a different culture. ‘Culture’ is defined as a complex set of values, behaviors, and beliefs that are shared by a specific group of individuals. Each cultural group expresses authority, creativity, accountability and other values in different ways.

Here are some obvious common barriers to communication with other cultures:

  • Language
  • General Education Level
  • Time Difference
  • Nationality Specific Traits
  • Religious Beliefs
  • Gender Roles
  • Individual Personal Space and Behavior

Culture specific differences influence collaborations in a huge way. The following paragraphs enumerate some common criteria to evaluate differences which are important to take into consideration when outsourcing offshore.

Low-Context and High-Context Cultures/Direct and Indirect Communication

Low-context and high-context means the manner by which communication occurs and the way information is presented.

Low-context: (e.g. Germanic, Scandinavian, and Anglo)

  • Usually written out in a full, concise, direct manner with numerous dependencies.
  • Focus is on specific money figures and deal closing.
  • Can cause specification and reporting misunderstandings.

High-context: (e.g. Japanese, China, Indian, most Asian and French)

  • Less information detail.
  • More emphasis upon reputation.
  • Confrontations are minimized.
  • More value is placed on politeness than clarity.

High-context cultures may interpret low-context cultures as being aggressive, whereas low context cultures may perceive people from high context ones as being overly secretive.

Polychronic vs. Monochronic Cultures (multi-tasking abilities).

Polychronic:

  • Tend to multi-task.
  • Open-door policies.
  • Take calls in meetings.
  • Typical USA.

Monochronic:

  • Focus on one task at a time.
  • Sense of orderliness.
  • Not fond of interruption.
  • Pride in a sense of orderliness.
  • Typical German (e.g. may be offended that an American is taking a phone call while in a meeting).