LOCAL STAFFING FOR

GLOBAL BUSINESS OUTSOURCING SUCCESS

John EP

In an ideal world ...•the policemen would be English•the car mechanics would be German•the cooks would be French•the innkeepers would be Swiss•and the lovers would be ItalianIn a living hell ...•the policemen would be German•the car mechanics would be French•the cooks would be English•the innkeepers would be Italian•and the lovers would be Swiss

•Outsourcing is the process by which a company contracts another company to provide particular services.

•These services/ functions would be otherwise carried out in-house, by the company’s own employees. •Outsourcing is becoming more and more popular in today’s business environment, and most companies outsource some work or other.

There are several different kinds of outsourcing, based on the nature of work outsourced. Some companies tie up with service providers for narrow functions. However it is also common these days to outsource entire operations.

Outsourcing can be placed in two broad categories, namely Information Technology

Outsourcing (ITO) and Business Process

Outsourcing (BPO).

Business process outsourcing can again be sub divided into call centre outsourcing, human resources outsourcing (HRO), finance and accounting outsourcing and claims processing outsourcing.

A high context culture is one in which the communicators assume

a great deal of commonality of knowledge and views, so that less is spelled out explicitly and much more is implicit or communicated

in indirect ways. 

A low context culture is one in which things are fully (though

concisely) spelled out. Things are made explicit, and there is

considerable dependence on what is actually said or written.

In a low context culture, more responsibility is placed on the listener to keep up their knowledge base and remain plugged into informal networks.

Low context cultures include Anglos, Germanics and Scandinavians. High context cultures include Japanese, Arabs and French.

Monochronic vs PolychronicMonochronic cultures like to do just one thing at a time. They value a certain orderliness and sense of there being an appropriate time and place for everything. They do not value interruptions. Polychronic cultures like to do multiple things at the same time. A manager's office in a polychronic culture typically has an open door, a ringing phone and a meeting all going on at the same time. The Germans tend to be monochronic.

ImplicationsGerman businessman cannot understand why the person he is meeting is so interruptible by phone calls and people stopping by. Is it meant to insult him? When do they get down to business?

Future vs Present vs Past OrientationPast-oriented societies are concerned with traditional values and ways of doing things. They tend to be conservative in management and slow to change those things that are tied to the past. Past-oriented societies include China, Britain, Japan and most spanish-speaking Latin American countries.

Future vs Present vs Past OrientationPresent-oriented societies include the rest of the spanish-speaking Latin American countries. They see the past as passed and the future as uncertain. They prefer short-term benefits.

Future-oriented societies have a great deal of optimism about the future. They think they understand it and can shape it through their actions. They view management as a matter of planning, doing and controlling (as opposed to going with the flow, letting things happen). The United States and, increasingly, Brazil, are examples of future-oriented societies.

Quantity of TimeIn some cultures, time is seen as being a limited resource which is constantly being used up. ImplicationsTime-plentiful cultures tend to rely on trust to do business. Time-limited cultures don't have time to develop trust and so create other mechanisms to replace trust (such as strong rule-by-law).

Power DistanceThe extent to which people accept differences in power and allow this to shape many aspects of life. Is the boss always right because he is the boss, or only when he gets it right?ImplicationsIn high power distance countries (most agrarian countries), bypassing a superior is unsubordination. In low power distance countries (US, northern europeans, Israel), bypassing is not usually a big deal.In the US, superiors and subordinates often interact socially as equals. An outsider watching a party of professors and graduate students typically cannot tell them apart.

Individualism vs CollectivismIn individualist cultures, individual uniqueness, self-determination is valued. ImplicationsA market research firm conducted a survey of tourist agencies around the world. The questionnaires came back from most countries in less than a month. But the agencies in the asian countries took months to do it. After many telexes, it was finally done. The reason was that, for example, American tourist agencies assigned the work to one person, while the Filipinos delegated the work to the entire department, which took longer. The researchers also noticed that the telexes from the Philippines always came from a different person.

Organisation

Germans are often uneasy with uncertainty, ambiguity and unquantifiable risk. This has become manifest in both

social and business spheres. Socially, Germans lean towards conservatism and conformism.

When doing business in Germany it is possible to notice a heavy emphasis on careful planning, consideration, consultation and consensus. This has developed an

appreciation for detail, facts and statistics. Organisation is a means of negating uncertainty and averting risk.

Aversion to Risk

The emphasis on conformity combined with a fear of the unknown makes Germans very apprehensive about risk.

Security is guaranteed through risk analysis.

This is achieved through careful deliberation and scrutiny based upon factual evidence as opposed to intuition or

'gut-feeling'. Written documentation is seen as the safest and most objective medium for analysis. A painstaking

review of details ensures all relevant information has been taken into consideration.

Communication

Germans value their privacy. Mentally there is a divide between public and private life. As a result, Germans wear a protective shell when doing business. Since intimacy is

not freely given, this may be interpreted as coldness. However, this is not the case. After a period of time walls

and barriers eventually fall allowing for more intimate relationships to develop.

Communication styles in Germany may be perceived as direct, short and to the point. Formality dictates that

emotions and unnecessary content do not have a place in conversation.

Meeting & Greeting

Firm, brief handshakes are the norm when doing business in Germany. When several people are being introduced take turns to greet each other rather than reaching over

someone else's hands. Avoid shaking hands with one hand in your pocket. When women enter a room it is considered

polite for men to stand.

German etiquette requires you to address someone using Herr (Mr.) or Frau (Mrs/Ms) followed by their surname. Only family members and friends use first

names. Professional titles should also be used for doctors, academics, etc. Try and establish professional titles prior to

any meeting.

Doing Business - Punctuality

When doing business in Germany, remember that punctuality is a serious issue. Business people work hard and are under a lot of pressure. Germans typically plan their time very carefully. It is

considered bad etiquette to be late or early as it shows disrespect for peoples' time.

Doing Business - Humour

A common misconception is that the German sense of professionalism and strict protocol when doing business leaves no

room for humour. An element of this true in that jokes are not commonplace. Yet Germans, just as much as anyone else, like to laugh and as long as it is appropriate, tasteful and in context then

humour is acceptable.

Meetings and Negotiations

Germans plan ahead. Therefore, ensure you book meetings at least 2-3 weeks in advance.

This is also applicable if you wish to have lengthy telephone conversations. Meetings are usually held between 11-1 p.m. and 3-5 p.m. Avoid Friday afternoons, the holiday months of July, August and December and

any regional festivals.

Meetings and Negotiations

Meetings are functional, formal and usually stick to a set agenda including start and

finish times. The phrase 'let's get down to business' is definitely appropriate for

German business meetings as small talk and relationship building are not priorities.

Meetings and Negotiations

When entering a room the most senior of you should enter first. The most senior German counterpart should be greeted

initially before any others present. Wait to be told where to sit. Treat the whole process

with great formality.

Meetings and Negotiations

The Germans will analyse proposals thoroughly. Ensure the information you provide is in written

format and presented scientifically. Logical conclusions based on empirical evidence will only normally carry any weight. Remember decisions

will not be made on your sales technique or charm but on concrete facts that demonstrate a sound

opportunity with minimal risk.

Meetings and Negotiations

Decisions are made slowly and methodically. Do not try to rush proceedings or apply

pressure. If anything, enquire as to areas in which you may be able to furnish them with additional or more specific information. Try and back-up information with insight from

personal experience or professional qualifications. Once a decision has been reached minds are very rarely changed.

VISION STATEMENTTo be among the Top 10 Global IT &

Business Process Outsourcing Services

Wipro Technologies of Bangalore, India, was having trouble persuading German companies to outsource offshore their chip and software design work to Wipro— until the company hired Walter Ortmueller...

Using a middleman “from the same country generates automatic trust,” says Mr. Ortmueller, whose twenty years of contacts in theindustry now help him scout and win clients for Wipro.

Outsourcing is finally beginning to crack the European market, once a staffing strategy was added of using a heavy sprinkling of local representatives from the same cultural background as the target clients...

“Local presence was a must for the customers” in Europe, says Sangita Singh, Wipro’s chief marketing officer. And she adds, Using locals also provides “the cultural and linguistic ties that make the clients smile and helps us build stronger relationships,”

Offshore outsourcing is growing dramatically in Europe, although still behind the U.S. pace due to European labor laws that make relocating jobs through offshore outsourcing a long and costly process.

To avoid layoffs, many European companies outsource only work and projects that require new hiring...

When Mr. Debjit Chaudhuri first came to Germany in 1999 to open an outsourcing office for India’s Infosys Technologies, Ltd., a Bangalore based consulting and IT services firm, German companies “didn’t know what I was talking about,” he says. “You need to build confidence, trying to keep it as German as possible, while giving you the benefits of outsourcing.”

TO BE CONTINUED…