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The Role of Cultural Intelligence for Successful Cross-Cultural Interaction in IT Offshore Outsourcing Projects

2008 February 4

Jours fixes take place on the first monday of the month, starting at 5:00 p.m., in room 220C of the university´s main building.

[Robert Gregory, E-Finance Lab]

The purpose of this research is to better understand how cross-cultural dynamics can be managed effectively by individuals in IT offshore outsourcing relationships. The research approach was an in-depth exploratory single-case study. Theory on cross-cultural issues in IT offshore outsourcing and cultural intelligence guided the research as a ‘sensitizing device’. A total of 15 semi-structured interviews were conducted with both the client and vendor company. The analysis of the data was conducted in an interpretive fashion, identifying common concepts and categories in the data and searching for possible theoretical conceptualizations.

The goal is to develop skills to manage cross-cultural dynamics which cannot be achieved without motivation, cross-cultural knowledge, and a learning process stimulated by feedback mechanisms. Concerning motivation, negative forces such as the fear of job loss have to be overcome in order to let positive forces, such as curiosity for the other culture, unfold. Knowledge about cultural differences and learning strategies is necessary but not sufficient. This study helps to understand how effective cross-cultural interaction is driven by a personÂ’s ability to adapt to new cultural settings. Project and relationship managers should develop an environment that lets individuals develop and use their intercultural skills.

Furthermore, active training methods such as site visits seem to be most effective for developing cultural intelligence. There have been few empirical studies in IS that analyze cross-cultural issues at the individual level of analysis.”