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John EP
In an ideal world ...
•the policemen would be English
•the car mechanics would be German
•the cooks would be French
•the innkeepers would be Swiss
•and the lovers would be Italian
In a living hell ...
•the policemen would be German
•the car mechanics would be French
•the cooks would be English
•the innkeepers would be Italian
•and the lovers would be Swiss
•Outsourcing is the process by which a
company contracts another company to
provide particular services.

•These services/ functions would be
otherwise carried out in-house, by the
company’s own employees.

•Outsourcing is becoming more and more
popular in today’s business environment,
and most companies outsource some
work or other.
There are several different kinds of outsourcing,
based on the nature of work outsourced. Some
companies tie up with service providers for narrow
functions. However it is also common these days to
outsource entire operations.

Outsourcing can be placed in two broad categories,
namely Information Technology Outsourcing (ITO)
and Business Process Outsourcing   (BPO).
Business process outsourcing can again be sub
divided into call centre outsourcing, human
resources outsourcing (HRO), finance and accounting
outsourcing and claims processing outsourcing.
A high context culture is one in
   which the communicators
    assume a great deal of
commonality of knowledge and
 views, so that less is spelled
out explicitly and much more is
 implicit or communicated in
        indirect ways.
A low context culture is one in
 which things are fully (though
 concisely) spelled out. Things
are made explicit, and there is
 considerable dependence on
what is actually said or written.
In a low context culture, more
responsibility is placed on the listener to
keep up their knowledge base and remain
plugged into informal networks.

Low context cultures include Anglos,
Germanics and Scandinavians. High
context cultures include Japanese, Arabs
and French.
Monochronic vs Polychronic
Monochronic cultures like to do just one
thing at a time. They value a certain
orderliness and sense of there being an
appropriate time and place for everything.
They do not value interruptions.
Polychronic cultures like to do multiple things
at the same time. A manager's office in a
polychronic culture typically has an open
door, a ringing phone and a meeting all going
on at the same time.
The Germans tend to be monochronic.
Implications
German businessman cannot
understand why the person he is
meeting is so interruptible by
phone calls and people stopping by.
Is it meant to insult him? When do
they get down to business?
Future vs Present vs Past Orientation
Past-oriented societies are concerned with
traditional values and ways of doing things.
They tend to be conservative in management
and slow to change those things that are tied to
the past. Past-oriented societies include China,
Britain, Japan and most spanish-speaking Latin
American countries.
Future vs Present vs Past Orientation
Present-oriented societies include the rest of the
spanish-speaking Latin American countries. They see
the past as passed and the future as uncertain. They
prefer short-term benefits.

Future-oriented societies have a great deal of
optimism about the future. They think they
understand it and can shape it through their actions.
They view management as a matter of planning,
doing and controlling (as opposed to going with the
flow, letting things happen). The United States and,
increasingly, Brazil, are examples of future-oriented
societies.
Quantity of Time
In some cultures, time is seen as being a limited
resource which is constantly being used up.
Implications
Time-plentiful cultures tend to rely on trust to
do business. Time-limited cultures don't have
time to develop trust and so create other
mechanisms to replace trust (such as strong
rule-by-law).
Power Distance
The extent to which people accept differences in
power and allow this to shape many aspects of life. Is
the boss always right because he is the boss, or only
when he gets it right?
Implications
In high power distance countries (most agrarian
countries), bypassing a superior is unsubordination. In
low power distance countries (US, northern
europeans, Israel), bypassing is not usually a big deal.
In the US, superiors and subordinates often interact
socially as equals. An outsider watching a party of
professors and graduate students typically cannot tell
them apart.
Individualism vs Collectivism
In individualist cultures, individual uniqueness, self-
determination is valued.
Implications
A market research firm conducted a survey of tourist
agencies around the world. The questionnaires came
back from most countries in less than a month. But the
agencies in the asian countries took months to do it. After
many telexes, it was finally done. The reason was that, for
example, American tourist agencies assigned the work to
one person, while the Filipinos delegated the work to the
entire department, which took longer. The researchers
also noticed that the telexes from the Philippines always
came from a different person.
Organisation

 Germans are often uneasy with uncertainty, ambiguity
and unquantifiable risk. This has become manifest in both
   social and business spheres. Socially, Germans lean
         towards conservatism and conformism.

When doing business in Germany it is possible to notice a
   heavy emphasis on careful planning, consideration,
   consultation and consensus. This has developed an
appreciation for detail, facts and statistics. Organisation is
   a means of negating uncertainty and averting risk.
Aversion to Risk

The emphasis on conformity combined with a fear of the
unknown makes Germans very apprehensive about risk.
     Security is guaranteed through risk analysis.

 This is achieved through careful deliberation and scrutiny
  based upon factual evidence as opposed to intuition or
 'gut-feeling'. Written documentation is seen as the safest
   and most objective medium for analysis. A painstaking
review of details ensures all relevant information has been
                  taken into consideration.
Communication

  Germans value their privacy. Mentally there is a divide
between public and private life. As a result, Germans wear
 a protective shell when doing business. Since intimacy is
   not freely given, this may be interpreted as coldness.
 However, this is not the case. After a period of time walls
  and barriers eventually fall allowing for more intimate
                  relationships to develop.

 Communication styles in Germany may be perceived as
  direct, short and to the point. Formality dictates that
emotions and unnecessary content do not have a place in
                      conversation.
Meeting & Greeting

Firm, brief handshakes are the norm when doing business
  in Germany. When several people are being introduced
 take turns to greet each other rather than reaching over
   someone else's hands. Avoid shaking hands with one
   hand in your pocket. When women enter a room it is
            considered polite for men to stand.

   German etiquette requires you to address someone
   using Herr (Mr.) or Frau (Mrs/Ms) followed by their
   surname. Only family members and friends use first
names. Professional titles should also be used for doctors,
 academics, etc. Try and establish professional titles prior
                      to any meeting.
Doing Business - Punctuality

When doing business in Germany, remember that punctuality is a
 serious issue. Business people work hard and are under a lot of
  pressure. Germans typically plan their time very carefully. It is
considered bad etiquette to be late or early as it shows disrespect
                        for peoples' time.

                    Doing Business - Humour

      A common misconception is that the German sense of
professionalism and strict protocol when doing business leaves no
  room for humour. An element of this true in that jokes are not
 commonplace. Yet Germans, just as much as anyone else, like to
laugh and as long as it is appropriate, tasteful and in context then
                      humour is acceptable.
Meetings and Negotiations

Germans plan ahead. Therefore, ensure you
book meetings at least 2-3 weeks in advance.
   This is also applicable if you wish to have
 lengthy telephone conversations. Meetings
 are usually held between 11-1 p.m. and 3-5
  p.m. Avoid Friday afternoons, the holiday
  months of July, August and December and
              any regional festivals.
Meetings and Negotiations


 Meetings are functional, formal and usually
stick to a set agenda including start and finish
times. The phrase 'let's get down to business'
is definitely appropriate for German business
    meetings as small talk and relationship
           building are not priorities.
Meetings and Negotiations

  When entering a room the most senior of
    you should enter first. The most senior
    German counterpart should be greeted
initially before any others present. Wait to be
  told where to sit. Treat the whole process
              with great formality.
Meetings and Negotiations


 The Germans will analyse proposals thoroughly.
 Ensure the information you provide is in written
     format and presented scientifically. Logical
conclusions based on empirical evidence will only
 normally carry any weight. Remember decisions
will not be made on your sales technique or charm
 but on concrete facts that demonstrate a sound
           opportunity with minimal risk.
Meetings and Negotiations

Decisions are made slowly and methodically.
  Do not try to rush proceedings or apply
pressure. If anything, enquire as to areas in
which you may be able to furnish them with
additional or more specific information. Try
 and back-up information with insight from
    personal experience or professional
  qualifications. Once a decision has been
  reached minds are very rarely changed.
VISION STATEMENT
 To be among the Top 10 Global IT &
Business Process Outsourcing Services
Wipro Technologies of
Bangalore, India, was having
trouble persuading German
companies to outsource
offshore their chip and software
design work to Wipro— until the
company hired Walter
Ortmueller...
Using a middleman “from the
same country generates
automatic trust,” says Mr.
Ortmueller, whose twenty years
of contacts in the
industry now help him scout
and win clients for Wipro.
Outsourcing is finally beginning
to crack the European market,
once a staffing strategy was
added of using a heavy sprinkling
of local representatives from the
same cultural background as the
target clients...
“Local presence was a must for the
customers” in Europe, says Sangita
Singh, Wipro’s chief marketing
officer. And she adds, Using locals
also provides “the cultural and
linguistic ties that make the clients
smile and helps us build stronger
relationships,”
Offshore outsourcing is growing
dramatically in Europe, although still
behind the U.S. pace due to
European labor laws that make
relocating jobs through offshore
outsourcing a long and costly
process.

To avoid layoffs, many European
companies outsource only work and
projects that require new hiring...
When Mr. Debjit Chaudhuri first came
to Germany in 1999 to open an
outsourcing office for India’s Infosys
Technologies, Ltd., a Bangalore based
consulting and IT services firm,
German companies “didn’t know what
I was talking about,” he says. “You
need to build confidence, trying to
keep it as German as possible, while
giving you the benefits of outsourcing.”
LOCAL STAFF OUTSOURCING

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LOCAL STAFF OUTSOURCING

  • 2. In an ideal world ... •the policemen would be English •the car mechanics would be German •the cooks would be French •the innkeepers would be Swiss •and the lovers would be Italian In a living hell ... •the policemen would be German •the car mechanics would be French •the cooks would be English •the innkeepers would be Italian •and the lovers would be Swiss
  • 3. •Outsourcing is the process by which a company contracts another company to provide particular services. •These services/ functions would be otherwise carried out in-house, by the company’s own employees. •Outsourcing is becoming more and more popular in today’s business environment, and most companies outsource some work or other.
  • 4. There are several different kinds of outsourcing, based on the nature of work outsourced. Some companies tie up with service providers for narrow functions. However it is also common these days to outsource entire operations. Outsourcing can be placed in two broad categories, namely Information Technology Outsourcing (ITO) and Business Process Outsourcing (BPO). Business process outsourcing can again be sub divided into call centre outsourcing, human resources outsourcing (HRO), finance and accounting outsourcing and claims processing outsourcing.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12. A high context culture is one in which the communicators assume a great deal of commonality of knowledge and views, so that less is spelled out explicitly and much more is implicit or communicated in indirect ways.
  • 13. A low context culture is one in which things are fully (though concisely) spelled out. Things are made explicit, and there is considerable dependence on what is actually said or written.
  • 14. In a low context culture, more responsibility is placed on the listener to keep up their knowledge base and remain plugged into informal networks. Low context cultures include Anglos, Germanics and Scandinavians. High context cultures include Japanese, Arabs and French.
  • 15. Monochronic vs Polychronic Monochronic cultures like to do just one thing at a time. They value a certain orderliness and sense of there being an appropriate time and place for everything. They do not value interruptions. Polychronic cultures like to do multiple things at the same time. A manager's office in a polychronic culture typically has an open door, a ringing phone and a meeting all going on at the same time. The Germans tend to be monochronic.
  • 16. Implications German businessman cannot understand why the person he is meeting is so interruptible by phone calls and people stopping by. Is it meant to insult him? When do they get down to business?
  • 17. Future vs Present vs Past Orientation Past-oriented societies are concerned with traditional values and ways of doing things. They tend to be conservative in management and slow to change those things that are tied to the past. Past-oriented societies include China, Britain, Japan and most spanish-speaking Latin American countries.
  • 18. Future vs Present vs Past Orientation Present-oriented societies include the rest of the spanish-speaking Latin American countries. They see the past as passed and the future as uncertain. They prefer short-term benefits. Future-oriented societies have a great deal of optimism about the future. They think they understand it and can shape it through their actions. They view management as a matter of planning, doing and controlling (as opposed to going with the flow, letting things happen). The United States and, increasingly, Brazil, are examples of future-oriented societies.
  • 19. Quantity of Time In some cultures, time is seen as being a limited resource which is constantly being used up. Implications Time-plentiful cultures tend to rely on trust to do business. Time-limited cultures don't have time to develop trust and so create other mechanisms to replace trust (such as strong rule-by-law).
  • 20. Power Distance The extent to which people accept differences in power and allow this to shape many aspects of life. Is the boss always right because he is the boss, or only when he gets it right? Implications In high power distance countries (most agrarian countries), bypassing a superior is unsubordination. In low power distance countries (US, northern europeans, Israel), bypassing is not usually a big deal. In the US, superiors and subordinates often interact socially as equals. An outsider watching a party of professors and graduate students typically cannot tell them apart.
  • 21. Individualism vs Collectivism In individualist cultures, individual uniqueness, self- determination is valued. Implications A market research firm conducted a survey of tourist agencies around the world. The questionnaires came back from most countries in less than a month. But the agencies in the asian countries took months to do it. After many telexes, it was finally done. The reason was that, for example, American tourist agencies assigned the work to one person, while the Filipinos delegated the work to the entire department, which took longer. The researchers also noticed that the telexes from the Philippines always came from a different person.
  • 22. Organisation Germans are often uneasy with uncertainty, ambiguity and unquantifiable risk. This has become manifest in both social and business spheres. Socially, Germans lean towards conservatism and conformism. When doing business in Germany it is possible to notice a heavy emphasis on careful planning, consideration, consultation and consensus. This has developed an appreciation for detail, facts and statistics. Organisation is a means of negating uncertainty and averting risk.
  • 23. Aversion to Risk The emphasis on conformity combined with a fear of the unknown makes Germans very apprehensive about risk. Security is guaranteed through risk analysis. This is achieved through careful deliberation and scrutiny based upon factual evidence as opposed to intuition or 'gut-feeling'. Written documentation is seen as the safest and most objective medium for analysis. A painstaking review of details ensures all relevant information has been taken into consideration.
  • 24. Communication Germans value their privacy. Mentally there is a divide between public and private life. As a result, Germans wear a protective shell when doing business. Since intimacy is not freely given, this may be interpreted as coldness. However, this is not the case. After a period of time walls and barriers eventually fall allowing for more intimate relationships to develop. Communication styles in Germany may be perceived as direct, short and to the point. Formality dictates that emotions and unnecessary content do not have a place in conversation.
  • 25. Meeting & Greeting Firm, brief handshakes are the norm when doing business in Germany. When several people are being introduced take turns to greet each other rather than reaching over someone else's hands. Avoid shaking hands with one hand in your pocket. When women enter a room it is considered polite for men to stand. German etiquette requires you to address someone using Herr (Mr.) or Frau (Mrs/Ms) followed by their surname. Only family members and friends use first names. Professional titles should also be used for doctors, academics, etc. Try and establish professional titles prior to any meeting.
  • 26. Doing Business - Punctuality When doing business in Germany, remember that punctuality is a serious issue. Business people work hard and are under a lot of pressure. Germans typically plan their time very carefully. It is considered bad etiquette to be late or early as it shows disrespect for peoples' time. Doing Business - Humour A common misconception is that the German sense of professionalism and strict protocol when doing business leaves no room for humour. An element of this true in that jokes are not commonplace. Yet Germans, just as much as anyone else, like to laugh and as long as it is appropriate, tasteful and in context then humour is acceptable.
  • 27. Meetings and Negotiations Germans plan ahead. Therefore, ensure you book meetings at least 2-3 weeks in advance. This is also applicable if you wish to have lengthy telephone conversations. Meetings are usually held between 11-1 p.m. and 3-5 p.m. Avoid Friday afternoons, the holiday months of July, August and December and any regional festivals.
  • 28. Meetings and Negotiations Meetings are functional, formal and usually stick to a set agenda including start and finish times. The phrase 'let's get down to business' is definitely appropriate for German business meetings as small talk and relationship building are not priorities.
  • 29. Meetings and Negotiations When entering a room the most senior of you should enter first. The most senior German counterpart should be greeted initially before any others present. Wait to be told where to sit. Treat the whole process with great formality.
  • 30. Meetings and Negotiations The Germans will analyse proposals thoroughly. Ensure the information you provide is in written format and presented scientifically. Logical conclusions based on empirical evidence will only normally carry any weight. Remember decisions will not be made on your sales technique or charm but on concrete facts that demonstrate a sound opportunity with minimal risk.
  • 31. Meetings and Negotiations Decisions are made slowly and methodically. Do not try to rush proceedings or apply pressure. If anything, enquire as to areas in which you may be able to furnish them with additional or more specific information. Try and back-up information with insight from personal experience or professional qualifications. Once a decision has been reached minds are very rarely changed.
  • 32.
  • 33. VISION STATEMENT To be among the Top 10 Global IT & Business Process Outsourcing Services
  • 34. Wipro Technologies of Bangalore, India, was having trouble persuading German companies to outsource offshore their chip and software design work to Wipro— until the company hired Walter Ortmueller...
  • 35. Using a middleman “from the same country generates automatic trust,” says Mr. Ortmueller, whose twenty years of contacts in the industry now help him scout and win clients for Wipro.
  • 36. Outsourcing is finally beginning to crack the European market, once a staffing strategy was added of using a heavy sprinkling of local representatives from the same cultural background as the target clients...
  • 37. “Local presence was a must for the customers” in Europe, says Sangita Singh, Wipro’s chief marketing officer. And she adds, Using locals also provides “the cultural and linguistic ties that make the clients smile and helps us build stronger relationships,”
  • 38. Offshore outsourcing is growing dramatically in Europe, although still behind the U.S. pace due to European labor laws that make relocating jobs through offshore outsourcing a long and costly process. To avoid layoffs, many European companies outsource only work and projects that require new hiring...
  • 39. When Mr. Debjit Chaudhuri first came to Germany in 1999 to open an outsourcing office for India’s Infosys Technologies, Ltd., a Bangalore based consulting and IT services firm, German companies “didn’t know what I was talking about,” he says. “You need to build confidence, trying to keep it as German as possible, while giving you the benefits of outsourcing.”