The financial benefits of offshore outsourcing are undeniably attractive. However, as with most business decisions, cost isn’t the only factor in choosing between offshore and onshore options. To ensure the best choice, leaders need to consider another noteworthy component when selecting the right business partner: cultural alignment.
Alignment can make collaborative endeavors smoother, more enjoyable, and more fruitful. Naturally, differences will accompany business process outsourcing (BPO) providers located in different regions of the world. Cultural differences extend beyond time zones and languages to include economic conditions, belief systems, and customary behaviors. If a potential outsourced partner significantly differs from you, it helps to consider whether the differences are more likely to be an asset or an obstacle.
At AdviseCX, we often address offshore versus onshore outsourcing with business leaders. If you are curious about how this may apply to your company, we recommend considering the following factors.
Defining the options
The advantages of outsourcing, like leveraging specialized skills and enhancing customer experience, are rewarding when you use an effective selection process.
On the one hand, offshore outsourcing offers significant cost benefits by accessing lower labor costs and operational savings and allowing companies to focus on core activities. It can also enhance organizational reach through around-the-clock customer service, a wider talent pool, and an expanded footprint.
On the other hand, onshore teams who share time zones can experience higher productivity and responsiveness through common business hours, real-time interactions, and faster decision-making. Additionally, team members share similar cultural backgrounds, work practices, and communication styles.
Kinds of alignment
Cultural alignment is common ground. In some cases, it yields easier communication, empathy, and collaboration, understands humor and offenses, and addresses concerns similarly. A region’s, and thereby, an organization’s, culture is an aggregate of numerous personal and contextual elements that can manifest in the workplace:
- Communication styles, including language, idioms, and formality, are used in meetings, emails, documentation, and customer engagement
- Values and beliefs influence corporate culture, behavior, decision-making, and policies
- Social structures shape team dynamics and interactions
- Local governments guide labor laws, workplace regulations, and the political climate
While these differences will be more evident between different countries, they can appear with companies near and far. The U.S. marketplace, for example, is full of diverse backgrounds, multiple generations, and contrasting ideologies. In the search for complementary outsourcing partners, companies must determine which of these elements is most important for an effective partnership.
Alignment that matters
Rather than focusing too heavily on the location of outsourcing companies (or any minor difference that doesn’t negatively impact the business relationship), examine their alignment with your identified priorities. It is also helpful to be aware of similarity bias — preferring and even trusting more easily people who are more similar than different from us. The goal is not to find someone identical to you but to find someone you can trust to represent your brand and make wise decisions.
Here are some questions you can use to determine whether a company shares your values, goals, and operating procedures:
- Are they fluent in your customer’s primary language(s)?
- How do they treat people?
- How do they respond to difficult situations?
- How do they solve problems?
- Are you confident they will represent you and your company well and according to your expectations?
- Do you sense they want to help your company succeed and grow?
- Are their processes compatible with yours?
- Considering the rate of change in the marketplace (particularly in technology and CX), are they agile and adaptable at the pace necessary for your business?
Sometimes, instead of looking for differences, we need to look for similarities. A Harvard Business Review article offers “how to successfully work across countries, languages, and cultures.” After a five-year study of a Japan-based e-commerce powerhouse, the article lists “seeking commonality” as a key action that drives success.
Commonalities are not always immediately apparent, but when we open our minds and look for them, we can see and appreciate them. Two cultures can admire each other for their shared passion for analyzing and improving processes. Finding commonalities draws colleagues from diverse cultures together and translates to better collaboration.
Still, when differences emerge, will they be a source of friction and conflict, or do they represent an opportunity to appreciate diversity while gaining the benefits of outsourcing?
A valuable tool
If you need a tool to weigh the costs and benefits of offshore or onshore outsourcing, you can perform a cost-benefit analysis. Use our expertise shared here, develop your own pros and cons based on your business priorities, and summarize your ideas in a table.
You might consider factors such as:
- Customer base location and local cultural understanding
- Complexity of customer and nuanced interactions
- Budgetary constraints and potential cost savings
Simplifying the selection
Performing due diligence through these assessments is worth investing time, effort, and resources. Choosing the right outsourcing provider for the right reasons produces a stronger partnership, better business outcomes, and happier people.
If you’d like support with the process, we can explain the actual costs and provide real insights about what you can expect from working with various cultures. Once we understand your needs in an assessment, we shortlist partners who fit those needs, which include everything from cultural alignment to sales support.
Contact AdviseCX today to start a conversation about your offshore or onshore outsourcing needs.
