Outsourcing Strategy
jkqgfuocf80u, Culture Matters: Cross-Cultural Risk Factors in Offshore Outsourcing
When companies decide on an offshore outsourcing strategy, select service providers and plan their onshore-offshore integration, due diligence and risk assessment are a normal part of the process. Until recently however, systematic attention to the cross-cultural dimensions of risk assessment has been rare.
With mergers and acquisitions, corporate culture compatibility and potential issues arising from differences in national cultures are more widely acknowledged as predictors of success than they are with outsourcing arrangements. In both kinds of business relationships, however, identifying and addressing the "soft" risk factors has been neglected in favor of the more easily identified financial and legal factors. Yet repeated research shows that cultural mismatch and failure of cultural integration lead to poor strategic alignment, communications and execution, and are key reasons why......
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