Problems in outsourcing. I have chosen Accenture, the worlds largest business consulting organization which will outsource the projects to different countries based upon the requirement. Being a consulting company, my company, Clear Tech business

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Problems in outsourcing

1. Executive Summary

Outsourcing is the way of distributing the work in an organization to the other companies, in case the parent company is not having the expertise in handling the situation. Hence, the companies are entering into different business opportunities, even though they are not having the expertise and thus outsourcing the work in the organization to the other potential companies. The outsourcing may be national or international. Generally the outsourcing will be highly seen in the service industry rather than the manufacturing industry. When the work is being distributed to other companies, there will always be a scope for the cultural variations which will affect the efficiency of the organization. As the service outsourcing deals with the different cultured people involved, it is highly discouraged to tie up the performance of the company with the cross cultural management of the organization.

Hence, the companies are adopting the cross cultural management such that the different cultured people, processes and the operations will be run under a same hierarchy which will be monitored by the management of the organization. In this document, the effect of the cross cultural environment will be discussed in the outsourcing department and how they have faced problems in designing a global strategy to handle the outsourcing. The management theories like Trompenaars will be specified in this document to enhance the knowledge of these theories on the practical life. This theory aimed at the development of the managerial patterns in an organization based upon the different cultural environments. I have chosen Accenture, the world’s largest business consulting organization which will outsource the projects to different countries based upon the requirement. Being a consulting company, my company, Clear Tech business consultants designed a model to implement in Accenture regarding the problems in the multi cultured environment.

2. Terms of Reference

My company, Clear Tech business consultants, is the famous business consulting firm in the region of United Kingdom and was serving Accenture UK Plc for past many years. Accenture is a multi-national company that is operating in many countries and the company will outsource the client works to the low cost countries like India. Since the culture varies from one company to another company and hence Accenture is also facing the same problem when the work is being transferred from UK to India. The aim of the project is to develop a business management model which describes the management styles that reduce the differences in the cultures in the work place.

3. Overview of the Situation

Outsourcing is the cheapest way of getting the work done. The low cost countries like India, China and Brazil are having their own infrastructure to perform the outsourcing at very lower prices than the developed western countries. However, the problem is with the different work cultures that are prevailing in both the areas and hence it became problem for the companies to synchronize the outsourcing among the employees. Some of the problems which are identified before designing the solution are:

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  1. Longer waiting period: When Accenture outsourced the projects to India, there will be a time gap of five and half hours between the working hours. Hence, the work cannot be synchronized due to these time variations. Outsource and offshore model cannot work in this way. And hence the company is looking for a different solution such that there will be a cooperative model designed between the companies.
  2. Cultural variations: Accenture is based upon the United Kingdom and the outsourced company is in India and there is a lot of difference between the work cultures. Due to ...

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