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The Key Cultural Issues of Outsourcing to India

Outsourcing to India can be one of the best decisions when it comes to prospering a company. India is a very populous country and has tremendous scope when it comes to industrial domains. The benefits of outsourcing to India can hence be immense provided the correct measures are taken before the outsourcing.

Certain factors affect your outsourcing to India. A majority of these are cultural issues. These issues when properly analyzed can be managed for the well-being of the company. In this article, we will take a look at some of these cultural issues regarding outsourcing to India.

Cultural Issues of Outsourcing to India

India’s Corporate Structure

India is governed by a hierarchical structure in all most all segments of the society. The industrial fields are no exceptions. Every corporate individual in India is accustomed to steady growth in a career with improving designations over the years.

Compared to this, most western companies have a flatter outlook when it comes to designations within the company. The hierarchical system in Indian companies is the product of ages and is not something that can be done away with.

Most western firms outsourcing to India adapt to this hierarchical structure for efficient functioning. The same has been fruitful for these companies as well.

The Attrition Rate In the Indian Industry

The attrition rate in the corporate world of India is significantly higher than the others in the world. This can be attributed to a wide of different factors.

Indian people expect a gradual and fast promotion in their work life. A whole lot of options in the field gives them ample opportunities for the same. Almost every company next door offers a higher package and a better designation. The mundane daily work-life also attributes to the high attrition rate of the industry.

Lesser Initiative    

A lesser initiative can indeed be an important cultural issue when it comes to outsourcing to India. This is once again because of the hierarchical structure of the organization. Employees with lower designation tend to remain less functional until direct orders and instructions are provided by the higher authorities.

This is quite a contrast to the firms in the west where individuals are given their goals and deadline, while they are left to achieve it. Hence, if you plan on outsourcing to India, plan on adapting with this work structure.

The Over Assumptions

If you are part of a company in the West it would be an over assumption for you if you think the Indian employees will understand how the industry in the west works. Industries in all parts of the world function differently. Teams need to be specifically trained about these changes and proper technology must be provided to them to maintain an efficient workflow.


Communication will be an issue when it comes to outsourcing to India. Firms often do not emphasize the communication training of their employees which affects their efficient functioning. This is particularly effective if the outsourcing firm is a western one and the Indian team is a predominantly rural one. The absence of proper communication between the teams can result in disruption of the efficient functioning of the organization.

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