Why Cultural Sensitivity Is Crucial for Global Offshoring Success

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Hi everyone,

We as accountants often generalize and oversimplify, no?

For instance the language of numbers, yes, it’s pretty much the same around the world – so we are tempted to assume that running an accountancy business would be the same world over.

And why shouldn’t it be?

You get a bunch of people well-versed with the accounting standards of that country and you are good to go.

Simple, right?

Not quite.

Because the language of exchanging ideas and cultural cues differs greatly from that of numbers.

And this is where people hit or miss when it comes to running a successful global outsourcing firm.

McKinsey reports that companies with diverse and culturally sensitive teams are 35% likelier to outperform their competitors.

During my journey with Samera, I've learned that understanding cultural context is key, and this helped so much especially when setting up our offshore team in India.

And yes, thankfully my Indian roots did make things easier but I was still far from knowing anything about how cultural differences influenced people and practices there.

When we first set up our offshore team in India (I am based at our HQ in London, UK), we quickly realized that flexibility and respect for local customs and practices were crucial. While our organization isn't rigidly hierarchical, we found that being mindful of traditional workplace norms helped us align better with our team.

Take feedback for instance.

In Western cultures, direct feedback is often welcomed as a tool for improvement. In India, however, such directness can come off as confrontational. Adapting our feedback to be more considerate and indirect, yet still constructive, has led to better team harmony and performance.

Another aspect of cultural sensitivity involves recognizing local customs and holidays. Companies that prioritize this thing experience a 30% higher employee engagement rate.

In India, festivals like Diwali (the Hindu festival of light) and Holi (the very colorful Hindu festival of Spring) are huge. I know we have to cater international clients and all that, but having these holidays dovetailed into the calendar is a must!

I mean how can you skip a Diwali? Acknowledging these events can boost team spirit and show that you value their culture. This simple act can foster loyalty and dedication among your team members.

But this doesn’t stop with tweaking your holiday list or communication preferences alone. According to Deloitte, culturally sensitive companies have 25% fewer conflicts in cross-cultural interactions, improving operational efficiency.

We made a similar ‘cultural adjustment’ when it came to work schedule.

We all know how overtime and burnout are so synonymous with accounting professionals. And it’s easier to take this for granted in a country like India where employees have the propensity to nod yes to working late to cover deadlines or attending “time-zone-friendly” international client calls.

This was our chance to break a bad habit.

By offering a flexible and remote work arrangement, we allowed our team to get the most out of their family and social time. Now employees are much happier, more motivated, and even more efficient – all that while enjoying stronger relationships with their dear ones and peers alike!

For me, adapting to these cultural nuances wasn't just beneficial—it was essential.

The perks of being culturally sensitive go beyond smooth operations. They build TRUST and RESPECT — the two pillars that make the accountancy industry stand firm.

At Samera, I’ve had a bird’s-eye view of how developing deep cultural sensitivity translates into global outsourcing and offshoring success.

If you are considering or continuing your global outsourcing journey, I suggest you take the time to learn about your offshore team's cultural background.

Once you have a team in place, I would also strongly suggest you make the effort to visit your team in India, not only will this strengthen the bond with your team, but also improve the morale of your offshore team.

I always love meeting my Indian compatriots, and they are always very welcoming to me when I visit.

So if you have not visited your offshore team as yet, get that ticket booked and see the difference it will make to your operation!

Trust me, there’s no better way to show your commitment to your team’s well-being and professional growth and secure the chances of your firm’s continued success.

Visit our website here to learn how Samera Global can support your firm's growth and efficiency.

Until next time,

Arun

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