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Accenture: Improved cross-cultural communication increases


global sourcing productivity
14-Jul-2006

Miscommunication and a lack of cross-cultural understanding can hinder the effectiveness of


global sourcing, according to the results of a study released today by Accenture.

Accenture: Improved cross-cultural communication increases global sourcing


productivity

The study, based on a survey of 200 US business executives whose companies have
outsourced business processes or functions ranging from information technology to finance
and accounting, also found that executives believe adopting cross-cultural communication
training programs can increase productivity by 26 percent, on average. This is consistent with
the productivity increases of 30 percent reported by executives whose companies already
provide training in this area.

Two thirds (66 percent) of all respondents said they had experienced miscommunication
issues within their global sourcing operations, compared with 60 percent among executives at
companies that offer cross-cultural training to their employees. That number increased to 72
percent for those whose companies did not offer any such training.

When asked to identify the chief factors causing problems between onshore and offshore
workers, the largest percentage of executives cited different communications styles (76
percent), followed by: different approaches to completing tasks (53 percent), different
attitudes toward conflict (44 percent) and different decision-making styles (44 percent).

These research findings bolster the real-life experience of global executives such as Kris
Wadia, a senior executive in Accenture’s Network of global delivery centres.

“In our view, the physical obstacles to outsourcing such as telecoms and facilities have largely
been resolved” said Wadia. “However, the soft issues, particularly cross-cultural
communication, will continue to present the main challenges to realizing global sourcing’s full
potential for the foreseeable future.

“Post-training feedback from the last couple of years suggests that long-term savings of both
time and money are clearly possible if cross-cultural communication issues are identified –
and resolved – at an early stage. There are also related benefits for companies, which include
improved employee morale, and reduced attrition rates,” Wadia added.

Related Link
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http://www.consultant-news.com/printArticle.aspx?id=2938 27/10/2006

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