While some argue that the world is flat, Vicki Flier Hudson makes her living ironing wrinkles and closing rifts caused by the global economy.

Enticed by supposedly huge cost savings on outsourcing, firms sometimes tend to overlook the hidden costs and challenges of overseas projects, she told GlobalAtlanta.

Ms. Flier Hudson, a cross-cultural trainer in Atlanta, grants that many problems that first plagued outsourcing – time differences, communication difficulties – have been smoothed out over the years by technology and a growing awareness of pitfalls as more companies dive in. 

But the world’s not yet flat, especially if you throw in cultural hurdles.

“What hasn’t been really resolved as of yet … are some of the smaller - what people would call softer - issues, like the cultural differences, language barriers, communication style differences. Those have gone unnoticed in a way,” she said.

That gap is all the better for her company, Highroad Global Services Inc.  Along with five associates specializing in different countries and regions, Ms. Flier Hudson teaches companies how to sidestep cultural snags that threaten their bottom lines.

Most recently, she traveled to Belgium to teach seminars for a multinational firm that is ramping up its efforts in India, an outsourcing hotspot and one of Ms. Flier Hudson’s specialty countries.

While each situation has its own nuances, Ms. Flier Hudson said her recent work has shown that for large companies, some stubborn problems persist without regard to the type of project or business unit.

She cited some common situations companies might face when offshoring projects to India. 

At times, Indian firms have a tendency to placate American clients by answering “yes” when “no” is really meant.

This is a symptom of vastly different communication styles.  While Americans prefer a more direct approach, Eastern cultures often favor an indirect method that emphasizes the desire to please more than blunt honesty.

The consequences can be dire, especially on time-sensitive projects, Ms. Flier Hudson said.

The role of the boss in India is also very different than in the U.S., as Indian culture places a greater emphasis on hierarchy and strict leadership structure.

“The challenge that often comes up with these two sets of teams is that the American engineers or team leaders expect their Indian colleagues to freely give ideas and give pushback when there is a problem, and typically the Indians will not,” she said.

Companies that are successful in outsourcing address these issues systematically and often use these countries not simply as a place to save money, but to build global market share as well, Ms. Flier Hudson said.

They also have a long-term plan, understanding that it takes time to build successful partnerships abroad.

“People are always shocked at how long it takes to get things rolling,” Ms. Flier Hudson said.

For example, a company sourcing from Mexico can’t look at India only as a knee-jerk reaction after the Mexican operation’s productivity starts to sag. 

Going abroad has to be methodical in order to truly learn from healthy cultural diversity.

“The object is to leverage the differences and create something positive out of it,” Ms. Flier Hudson said. “And of course for these large companies the bottom line is they want results, so if you want results, why wouldn’t you do everything in your power to make sure that these barriers are broken down?”

Ms. Flier Hudson is teaching a class on March 23 at Emory University on 10 secrets to successful business with China.  Register here. 

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