Qualitative and quantitative approach to model offshore outsourcing barriers due to cultural differences

Abstract

The main objective of this paper is to quantify barriers due to cultural differences which affect the performance of offshore outsourcing. Cultural differences are related to deep-seated values and are also often more difficult to observe than language differences, so they may go unnoticed. Language, cultural and time zone differences are obvious problems that complicate offshore process management. To this effect, the problem is investigated using both qualitative and quantitative approach. In qualitative approach, interviews were conducted; and in quantitative approach, interpretative structural modelling (ISM) is used to identify inter relationship among the barriers. Results of qualitative analyses show that main barriers are communication language and belief and attitude. Further analysis using ISM approach shows that belief and attitude act as strong drivers and communication language acts as a linkage.