COMMUNICATION IN BUSINESS Essay Example | Topics and Well Written Essays - 2750 words

COMMUNICATION IN BUSINESS - Essay Example This is complemented by the low salaries in the country which would be effective in saving cost of the firm. An overview of the situation has been provided with regard to the culture barriers and differences between the two countries using Hofstede’s cultural dimensions. This is important to know the behaviour of people in the country where the company wants to operate. Based on the cultural differences, suitable recommendations have been provided to remove or utilise the differences. Lastly, the future of India’s outsourcing industry has been analysed and presented. Terms of Reference The project discusses about an outsourcing firm based in India. It is an IT company operating from USA. The company is named as ABC IT Solutions. The company has entered into partnerships with the local firms in India to take up their outsourced activities. The company has partnered with the outsourcing firm to take assignments on the IT enabled services. The firm has also taken up the bu siness process outsourcing activities of the company. The IT services that have been outsourced by the company are data mining, data warehousing, IT consulting, e-Commerce, and software development. The business process outsourcing includes such crucial activities like Customer Relationship Management (CRM), Supply Chain Management (SCM) and Enterprise Resource Management (ERP). The main purpose of outsourcing the above activities is to save cost of the company. Since India’s labour cost is lower than that in USA, the company has set up its outsourcing operations in the country. The BPO market in India has been expanding at a fast rate. It is estimated that the BPO market in India would grow by 19% in 2013. The sector has become extremely organised and has become the focus of a number of multinational companies (India Current Affairs, 2010). Overview of the Situation It is critical that a globally integrated organisation shapes its management, operations and strategies in a g lobal way. This company has been facing crisis implementing its strategies in the BPO on India. Firstly, the managers are confronted with the problem of coordinating resources like material, human and finance in meeting its business objectives successfully (Wursten, 2008, p.1). They are also faced with the problem of combining the culture differences prevailing between the two countries. The effective means of combination in USA may not necessarily be effective in India. The culture clash may take place between the client and the service provider at two levels; the corporate culture and the national/regional culture. With regards to the corporate culture, the speed with which a service is provided, or the norms followed with regard to decision making, style or organisational structure may be different between the client and the service provider (McCray, 2008, p.6). Another potential cause of clash could arise out of the fact that the process of outsourcing represents commercial rela tionships between two completely different entities. Organisations could take inflexible and extreme positions which could create a sense of distrust or tension between the two (McCray, 2008, p.6). Among the national or regional inhibitors, there could be language barriers which could create communication problems. Also the expectations regarding open debates, acknowledgement of problems or willingness to adopt different work techniques to