PDI: Overcoming communication failures in outsourcing

The major problem in outsourcing relationships today is communication. A study concluded that 25% of the reasons for outsourced project failures are due to poor communication (16%) and cross – cultural problems (9%). This is one of the biggest outsourcing concerns that clients have when companies start to look for partners. Communication failures often occur even if both the buyer and provider speak the same language, for the simple reason that they fail to understand each other or innocently offend each other because they didn’t understand each other’s cultural mores. Gerard (Geert) Hendrik Hofstede introduced the concept of the Power Distance Index (PDI) which is a perceived “distance” between a boss and an employee that varies dramatically based on culture, biases, heritage and hierarchy.

Communicating effectively can be extremely challenging at times and if ignored can affect the offshoring industry. In order to minimize the damage caused by PDI difference, companies will be required to deal with it on several levels.

Problems can and do come from outsourcing providers but it is often easier for businesses or their managers to blame them for any issues that arise. Businesses often expect a rise in level of service and tend to forget disappointed outcomes and may not understand why things are not running smoothly. Quality Outsourcing requires the establishment of a formal internal system with accountable and proactive management for it to work most effectively. Clear lines of communication between the outsourcing business and the outsourcing provider are vital. Problems such as discrepancies between what is asked for and what is done can be avoided with simple guidelines for employees such as confirming telephone conversations via email for example. Outsourcing of services can create PDI misunderstandings during communications, translations between languages, varied cultures and contract structures. Company executives must see these implications and consciously evaluate mitigation strategies.

Outsourcing projects are definitely not a stress free alternative, however, if done wisely; it can save time and money. TECHMODE Outsourcing ltd. is equipped with technology, resources, tools and methods honed and validated during its years of experience. If you want to be in safe hands contact us on info@techmode-outsourcing.com or visit our website techmode-outsourcing.com.