Offshoring to Increase

A recent study by Watson Wyatt has found that 42% of multinationals are likely to take aspects of their business offshore, as the depressed economy signals a forced cut in expenses. The study also found that multinationals will probably restructure their global HR branches by either dispersing it across multiple regions or centralizing it under a single global HQ. The issue to be raised here is the readiness and ability of offshore teams to effectively collaborate within a culturally heterogeneous corporate body. Are multinational organizations heading into offshore activity prepared for this new dynamic, or are they addressing issues as they arise? For example, how will an offshore team of Indians react to a complaint of their German executive that they missed a deadline by too much? How will the German executive understand how this could have happened? Fleshing out these misunderstandings can be largely tied to culture, which is what our Culture Tips category is all about.

See this release for a detailed summary of their findings.