If you deprive yourself of outsourcing and your competitors do not,  you’re putting yourself out of business. – Lee Kuan Yew, first Prime Minister of Singapore

This statement becomes clear when you consider its implications. Outsourcing offers numerous advantages to businesses, including cost savings, access to specialized expertise, increased efficiency, and the ability to focus on core activities. If your competitors are benefiting from outsourcing and you choose not to participate, it poses a significant problem. Therefore, it is advisable to embrace software outsourcing.

It is important to acknowledge that not all processes will be seamless. Challenges and obstacles may arise. Although software outsourcing brings about significant success, it also presents certain difficulties. However, these issues are not insurmountable. In this article, we will discuss the cultural barriers associated with software outsourcing and explore strategies to overcome them, much more.

Cultural Barriers

What is Cultural Compatibility

Imagine finding yourself in a scenario where you’ve been diligently searching for a job for months, and at last, you come across a position that aligns perfectly with your qualifications and experience. You excel in the interview process, only to discover that there is a significant lack of compatibility between your personal values, beliefs, and customs, and the culture of the company. Cultural compatibility can be seen as the harmonious connection or resonance between individuals and their organization, where the degree to which their beliefs, values, and customs match becomes essential. It relies heavily on the context of interpersonal relationships and the overall environment within the company.

What is software development outsourcing?

Software development is a complex and time-consuming process. By engaging an external team, organizations can alleviate the workload on their in-house teams. The practice of enlisting the services of external individuals or teams to manage the development, maintenance, and support of software applications or projects is commonly referred to as software development outsourcing.

Software development outsourcing is chosen by organizations for several compelling reasons. The foremost among them is cost savings, as it allows companies to reduce expenses. Moreover, outsourcing enables the internal team to concentrate on their core competencies, leading to enhanced productivity. Additionally, it facilitates faster development cycles, helps mitigate risks, and provides the advantage of 24/7 development and support from the outsourcing team.

The software development outsourcing market is experiencing exponential growth, surpassing all expectations. It is projected to reach a staggering value of over $410 billion by 2027, indicating the industry’s remarkable expansion and widespread adoption.

Cultural issues in software development outsourcing?

Let’s understand this scenario. To enhance communication between a US-based software development company and their outsourced team from India, it is crucial to ensure proficiency in English for both teams. By prioritizing language adaptation, the US team creates an inclusive environment that facilitates effective communication between the teams. If this barrier widens, the process will go haywire. 

The language barrier is just one of the challenges that can arise when multiple cultures are involved in software development outsourcing. However, with proper management, these challenges can be effectively addressed. Language barriers often hinder communication, while discrepancies in time zones, resulting from hiring a team from a different country, can also impact collaboration and decision-making styles.

Overcoming Cultural Barriers in Software Outsourcing

For an organization to move forward is very crucial to overcome cultural barriers in software outsourcing. We have to embrace cultural diversity and look out for ways to bridge the gaps. Only then your organization will become a thriving place. Here is how we can overcome cultural barriers. 

  • Cultural Awareness and Training

An organization consists of individuals from diverse backgrounds and cultures. When cultural differences are not properly understood, conflicts and misunderstandings can arise. To ensure effective communication, it is essential to have knowledge about these cultural variations. Cultivating cultural sensitivity requires training, which can be achieved through effective communication, collaboration across cultures, and fostering connections between individuals.

  • Open and clear Communication Channels

When multiple cultures are involved, multiple languages come into play. Language support and sensitivity play a crucial role in overcoming this challenge. Open and clear communication, along with active listening is essential to address language barriers. If left unaddressed, language barriers can lead to conflicts, which can be resolved through face-to-face interaction and conflict resolution strategies. These efforts contribute to building strong communication channels.

Infosys, a renowned global consulting and IT services company is well-known for their effective communication in software outsourcing projects. They have established robust communication practices that enable smooth collaboration. This emphasis on communication is a key factor in Infosys’ success in managing diverse cultures and languages in its outsourcing projects.

  • Building trust and relationships

Establishing trust and fostering relationships across cultures can be a challenging endeavor. A survey conducted by Harvard Business Review encompassed regions such as Asia, Latin America, and the Middle East, involving interviews with more than 400 managers and executives. The findings revealed key insights regarding the building of trust and relationships in such contexts.


  • Managers understand the importance of trust building, and that this process is vital and its time. 
  • Managers give adequate time to understand every employee and their culture.
  • Managers know that results and character build trust.

Additionally, Tata Consultancy Services (TCS), a prominent IT services, consulting, and business solutions organization, is well-known for its dedication to building trust and relationships. This aspect holds significant importance in overcoming cultural barriers in software outsourcing.

  • Embrace Flexibility and Compromise

When faced with challenges stemming from cultural barriers in software outsourcing, it is crucial to approach them with an open mind. The ability to be flexible and willing to compromise reflects positively on a manager’s skills. Every problem presents multiple possibilities, and by embracing alternative approaches such as adjusting communication methods, adapting work practices, making collaborative decisions, balancing priorities, and building trust, viable solutions can be found. It is important to begin this process by respecting and appreciating every culture involved.

  • Clearly Define Roles and Responsibilities

Clearly defining roles and responsibilities has a significant impact, especially in the context of overcoming cultural barriers in software outsourcing. It brings about clarity and alignment, ensuring smooth communication. It fosters collaboration, instilling a sense of accountability and ownership in team members. Importantly, well-defined roles facilitate easy conflict resolution.

Read more: https://www.linkedin.com/pulse/overcoming-cultural-barriers-software-outsourcing-nurturing-hassan/

In Conclusion

Overcoming barriers is an ongoing journey that requires patience and persistence. It is important to recognize that change takes time and cannot be achieved overnight. However, for meaningful change to occur, organizations must possess an open-minded approach and a proactive attitude toward monitoring and addressing issues promptly. In order to foster harmony in a cross-cultural environment, it is crucial to embrace flexibility, be willing to compromise, and actively build trust among team members. Conducting training sessions provides an opportunity to gain a deeper understanding of different cultures and perspectives.

Another effective strategy is to clearly define roles and responsibilities within the organization. This clarity helps to overcome cultural barriers by ensuring that everyone understands their specific duties and tasks. By clearly defining roles, organizations can enhance communication, collaboration, and overall productivity while minimizing misunderstandings caused by cultural differences. In essence, it is said that software outsourcing thrives when cultural barriers are acknowledged, respected, and transformed into opportunities for collaboration, growth, and mutual success.