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

Authors: Prashant Chauhan; Sunand Kumar; Rajiv Kumar Sharma

Addresses: Department of Mechanical Engineering, JSS Academy of Technical Education, Noida, India ' Department of Mechanical Engineering, National Institute of Technology, Hamirpur, Himachal Pradesh, PIN 177 005, India ' Department of Mechanical Engineering, National Institute of Technology, Hamirpur, Himachal Pradesh, PIN 177 005, India

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.

Keywords: cultural differences; barriers; offshore outsourcing; services; interpretive structural modelling; ISM; cross impact matrix; offshoring; culture; offshore process management; communication language; beliefs; attitudes.

DOI: 10.1504/IJSBA.2015.072034

International Journal of Strategic Business Alliances, 2015 Vol.4 No.2/3, pp.184 - 200

Received: 02 Dec 2014
Accepted: 04 Jul 2015
Published online: 29 Sep 2015 *

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