How Cultural Differences Affect Outsourcing of Software Development

Outline:

  • Scientific background: Measures of cultural differences
  • Country reviews (Ukraine, Poland, Israel, United States, Mexico, Brazil)
  • Importance of context in cross-cultural communication
  • Tips for managing cultural differences in software development projects

Introduction

Each country has its national peculiarities reflected in its businesses. Entrepreneurs who open new markets for their products must understand how cultural differences can influence their teams, processes, and communication. This also applies to the IT companies that outsource their software developers. 

  1. Scientific background: Measures of cultural differences

The initial step in outsourcing software developers to/from countries with different cultures is to single out essential criteria for a project, such as time zone, language, religion, or cultural peculiarity. These could affect workflow and include the presence of, for example, a siesta, Friday as a day off and Sunday as a working day, a general attitude toward work and money, religious aspects that prohibit working in a certain way, and so on. To understand these variations and operate efficiently within them, we need to create a scientific model. 

Geert Hofstede, a social psychologist, identified cross-cultural differences based on five measures: 

  • power distance
  • individualism
  • uncertainty avoidance
  • long-term orientation
  • masculinity

Richard Nisbett, another social psychologist, discovered that Western cultures perceive objects in isolation through a narrow lens with a sharper focus, while Asian cultures view them holistically through a wide-angle lens. 

Another study examined a so-called ‘mum effect’. It occurs when some stakeholders have information indicating that a project is failing, but they choose to remain silent and let the project go on and eventually flop. The risk of this effect is higher in Asian countries than in the West. In Asian cultures, the ‘mama effect’ and the philosophy of ‘saving face’ can also puzzle Western counterparts.1

The above and many other cultural differences can impact interactions, understanding, interpretation, communication, productivity, comfort, and commitment in business projects. Consequently, every employer, recruiter, and job seeker must understand these peculiarities of outsourcing to/from other countries. 

  1. Country reviews

Let’s review the process of recruiting software developers in several global destinations most popular among outsource recruiters: Ukraine, Poland, Israel, the United States, Mexico, and Brazil. We will consider some peculiarities a recruiter or a future employee should know before launching out on a voyage of professional discovery. 

Ukraine

Ukraine is an excellent choice for hiring software developers for European and American clients. A universal time zone doesn’t pose any difficulties for the seamless functioning of international teams. Ukrainian specialists can speak English well, allowing for unimpeded communication with foreign colleagues and employers. Ukrainians also have a Western mentality. 

A notice period in the IT sphere in Ukraine is up to 3 weeks at the most. A big plus for employers looking to close their vacancies quickly: a valuable candidate can change their job in a short time frame. 

Poland

If we consider Poland as a sample country from a European workforce segment, its notice time is from 3 to 6 months. It is a characteristic of Europe that favors living and working at a leisurely pace. Undoubtedly, it slows down the hiring process considerably when the process needs to be completed in the quickest possible time. That is why clients must plan staff expansion or a specialist substitute in advance, which is not always possible. 

Selling points for Polish candidates are their stability, flexibility, and work-life balance. Communication with software developers from Poland should be devoid of emotional attachment, sugar-coating, and wordy small talk, as it’s considered a waste of time. 

Ukraine and Poland are very close, both geographically and intellectually. However, when comparing Ukrainian and Polish approaches to outsourcing developers, we find the following characteristic differences: 

Poland Ukraine
Stability  Short-term benefits
Work-life balance Challenge
Business tasks and product essence Technological stack
Values Speed and quality of processes
Gender prejudice (status of a problem) Gender prejudice (status of a tragedy)
The ‘Work to Live’ principle is inapplicable The ‘Work to Live’ principle is favored

 

Israel

When hiring employees from Israel, you must take into account for their not working on Fridays. Instead, they start their work week on Sunday, distinct from the otherwise habitual Monday. This schedule isn’t the most convenient for team members from other countries, but it doesn’t constitute a significant obstacle. On Sundays, a specialist can perform routine tasks that do not require additional communication with the team. 

You must also bear in mind, according to Israeli labor legislation, the maximum weekly 45 working hours, with a daily total of 8 working hours. Also to consider are the different types of annual and sick leave, which might be a bit confusing for a newbie recruiter. 

The United States

The work style in the United States is similar to that of Israel and Ukraine. The recruitment process is quick and efficient, with recruiters trying to close vacancies as soon as possible so that employers don’t waste time pondering long and hard over a particular hire. 

In the workplace, people are direct and frank in communication and prefer to give direct feedback, both positive and negative. They easily separate work from personal life. This type of culture allows for embedding specialists from other countries with ease. 

A high level of eye contact is the norm for most Americans of European descent. However, for example, workers from Native American cultures may see direct eye contact as disrespectful or intimidating; they use indirect communication to be polite, making suggestions instead of demands. 

Mexico

In Mexico, the family means everything. If an employee is not productive, a manager may try to discover what is happening in their personal life. With Mexicans, separating work from personal relationships may be challenging, but it can be accomplished. 

Mexicans dislike confrontation but like diplomatic approaches in solving issues; it means interlocutors have to be polite and courteous while understanding subtle non-verbal cues, just like in Asian cultures. 

Brazil

This country with the biggest economy in Latin America occupies third place among 50 digital nations, according to the Tholons Services Globalization Index 2020. It has only a 2-hour timezone gap with the United States. The notice period for specialists from Brazil is from 2 to 4 weeks. 

Selling points for Brazilian candidates include work-life balance, learning opportunities, friendliness at the workplace, and compensation. Maternity and paternity leaves are a must. Brazilians value informal, soft, and encouraging communication and distrust business-like pushiness. They form friendly relationships based on work. Please, remember that national holidays are a ‘sacred cow’ to them. 

Cultural differences between countries can also be illustrated by how different national teams of software developers apply diverse software methodologies. Latin America, Eastern Europe, Western Europe, and the United States represent a more conducive environment for accepting the flexibility and proactiveness of Agile methodologies and direct communication. 

On the other hand, Indian, Chinese, and Southeast Asian developers focus on well-defined instructions and structured processes. Work usually proceeds more comfortably in the Waterfall and V-model processes.2

  1. Importance of context in cross-cultural communication

Currently, active outsourcing of software developers leads to the rapid growth of multinational teams. Recruiters and managers of all levels must pay attention to the context of communication, which is especially important in cross-cultural interaction. Context-wise, there are Low Context and High Context cultures, as singled out by Edward T. Hall in his book Beyond Culture. Let’s examine these two cultures: 

  • In Low Context cultures (the United States and Europe), good communication is clear, simple, and precise. Messages are understood at face value; repetition is appreciated if it helps clarify the communication. 
  • In High Context cultures (Asian cultures, like Japan or India), good communication is sophisticated, nuanced, and layered. Messages are spoken and read between the lines, often implied but not plainly expressed.3

Software development is a communication-intensive industry, especially during the requirements stage, which must remove uncertainty from the process. So, to cooperate successfully with developers from other cultures, one needs to observe certain strategies for proper communication and evaluation.

  • Communication

Low Context cultures perceive High Context communicators as lacking transparency, secretive, or unable to communicate effectively. In contrast, High Context cultures perceive Low Context communicators as inappropriately stating the obvious or even as condescending and patronizing. 

Low Context people need to learn to read between the lines and understand what is behind a comment. Learning to listen to what is meant instead of what is said is necessary, especially when working in Asian cultures. This means reflecting more, asking more clarifying questions, and trying to be more receptive to body language cues.

High Context people have to be clear, specific, and as transparent as possible. They have to assert their opinions transparently, showing all the cards upfront and recapping the key points afterward. If they are not 100% sure what they have been asked to do, they shouldn’t read between the lines but admit their confusion and ask for clarification.

As for multicultural teams, there is one efficient strategy: using Low Context processes. If the communication is complicated, a person needs to recap the key points orally or by email. However, keep in mind that High Context people might consider it unnecessary or untrusting.

  • Evaluation

Giving feedback in different cultures, especially negative feedback, is done in drastically different ways. In most European countries (e.g., Germany and the Netherlands), managers give direct negative feedback. Latin American countries fall in the middle, while in Asian countries, managers provide the most indirect negative feedback.

Direct cultures use words that linguists call ‘upgraders’ to strengthen the feedback (e.g., absolutely, totally). Cultures of indirect negative feedback wrap the message with positive feedback or express it more softly, never criticizing a colleague openly. These cultures use ‘downgraders’ (e.g., kind of, a little, a bit, maybe) or a deliberate understatement (attenuation).

Strategies that work in such cultures are the following: 

  1. softening the unpleasant message with pleasant words or situations (e.g., using food and drinks);
  2. giving the feedback slowly, over time, so it gradually sinks in. 

When placing Ukraine and some other countries on a scale from 1 to 5 that reflects national peculiarities of communication, evaluation, leadership, and decision-making, you will get the following culture map: 

Source: Jose ____.3

  1. Tips for managing cultural differences in software development projects

Multiculturalism is about constant development. Every business needs to be open to new cultures in order to embrace new opportunities, ideas, and challenges. Based on our experience in overseas recruitment, we offer you several tips on how to deal with cross-cultural differences in multinational teams:

  • Conduct thorough research on the cultural norms, values, and working processes of your prospective business partner in advance. Identify possible problems and develop a list of countermeasures.
  • Establish explicit and elaborate project specifications: needs, timeframes, and expectations. Use unambiguous language and avoid excessive usage of technical jargon at the initial stage, even in the software developers’ community.
  • Create the possibility to use various channels for immediate communication, e.g., Slack, Zoom, Microsoft Team, Google Hangouts, and others. Resort to regular phone conversations and face-to-face meetings, if possible.
  • Appoint official contact persons for all parties in the project. These trusted agents will ensure the immediate resolution of concerns and a lack of communication gaps.
  • Use a robust project management method. Have a decent team collaboration platform, establish transparent processes and procedures, and develop a strong project management strategy.
  • Train employees in cross-cultural communication and cooperation on a regular basis. Hold team buildings and specialized training in the office, but don’t forget to turn some routine meetings into ‘field sessions’ by visiting your employees’ home countries, if possible (e.g., for a corporate party). 
  • Foster a culture of mutual respect and understanding. Teach your team members to be sensitive to the cultural peculiarities of their peers and encourage open communication about any misunderstandings. 
  • Acknowledge religious and national holidays and celebrations. In many cultures, they form an inseparable part of personal identity.4 

Follow these recommendations, and the chances of a successful outcome for your outsourcing software development project will improve considerably. 

Conclusion

Outsourcing can be difficult because a business must ensure cultural compatibility, cultural fit, synergy, and chemistry between sometimes completely different team members. It’s vital because, according to a 2008 study by Accenture, more than 60% of all outsourcing deals fail, completely or partially, mainly because of a lack of cultural compatibility between the vendor and the client.2

We understand that you might be apprehensive about the results of creating multinational teams. However, you needn’t worry because Sonerim’s expertise in outsourcing allows us to communicate with different cultures without any problems. If you’re looking for a dream team or a star employee for your new project, Sonerim is here to help you. We know how to make cultural differences enrich your company’s experience.  

Sources:

  1. https://www.cio.com/article/278643/offshoring-cultural-barriers-to-offshore-outsourcing.html 
  2. https://blog.santexgroup.com/blog/outsourcing-overcoming-the-cultural-gap/
  3. Beyond Culture, Edward T. Hall, 1976; Jose (his surname).
  4. https://logicabeans.com/impact-of-cultural-differences-in-outsourcing/ 
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