INTER-CULTURAL PROBLEMS OF IT-SERVICES OUTSOURCING FROM SWEDEN TO INDIA

Undergraduate

ABSTRACT

IT-services outsourcing from Sweden to India has increased in the last few years and it is often regarded as a strategic measure to handle the increasing costs of IT-related development and maintenance operations. There are a number of advantages of outsourcing however, there are many challenges that outsourcing initiatives face. One of the challenges mentioned by many researchers is the cultural differences between the Swedish culture and the Indian culture. At the same time there is not enough research done about these cultural differences in the context of IT-services outsourcing from Sweden to India. It creates difficulties for the partners involved in an IT services outsourcing initiative to achieve the desired results. 

In this work we have researched these problems by sending questionnaire to IT outsourcing companies in Sweden. The questionnaire was prepared after a thorough literature review. The participants were asked if they are still facing the problems identified in the literature review and to also mention any other cultural problems faced by them. The questionnaires were analysed and the results obtained are presented in this work. The results show that the practitioners were still facing the problems. This thesis identifies the root causes, the negative effects and also suggests ways for handling the problems. This research will help the IT-services outsourcing practitioners to manage these problems for achieving better result.

 

RESEARCH QUESTIONS

We have narrowed down our research to – identification of inter-cultural problems/challenges in context of outsourcing IT-services from Sweden to India. Our research focus will be on the following questions

Question No 1:  What are the central intercultural challenges or problems, in the outsourcing relations, between the outsourcers in Sweden and the insources from India, with regard to IT-services outsourcing?

Question No 2: For each identified challenge or problem, what is the possible factor(s) that cause it, its negative effects and how it could be handled?

Question No 3: What are the causes, negative effects of pre-defined intercultural problems and how it could be handled?

RESEARCH OBJECTIVE 

Outsourcing considered as a business strategy. In theory, it is easy to say a company has outsourced, but in practice, outsourcing companies face many problems one of which is inter-cultural problems. Our research objective is to identify those intercultural problems which are faced by the companies especially in the context of IT services outsourcing from Sweden to India and root causes, negative effects and handling of these problems. We intend to present these inter-cultural problems in a scientific way that will be new knowledge for the IT-service outsourcing companies and will be helpful in general for any insourcing / outsourcing company around the world and in specific for Swedish outsourcing companies and Indian insourcing companies.

 

EXPECTED RESULT OF RESEARCH

To identify inter-culture challenges in the context of outsourcing IT-services from Sweden to India, the outsourcers will be able to use findings as guidelines for achieving better quality of services. The knowledge can be used to guide successful management of outsourcing relations, from the inter-cultural point of view. The management, stakeholder and the employees will be aware from the inter-culture gap between Sweden and India.

      The result can be used to raise the awareness of inter-cultural problems in ITservices outsourcing relationship.

      The management could be able to use research findings for further policy and decision-making.

      This research work can be used for successful IT-services outsourcing relationship between organizations of Sweden and India.

      Organizations could use the research findings in order to increase the success of their IT-services outsourcing project.

      Researchers could use findings for future research.