Deovtt Insights: Cultural Fit in Outsourcing Marketing
Source: View: 276 Date: 2015-06-18

How to get more orders and buyers in international outsourcing market has always been the important thing for outsourcing destination countries and providers concerned about, also it has always been one of the core topics for outsourcing research. With the promotion of global information and communication tools, the elements those can decide the final decisions of buyers have become more complicated and random. For example of delivery price, it always is an important element in assessment system for outsourcing buyers and is one of important driven powers in outsourcing industry; however, those providers who finally win outsourcing projects may not provide lowest price. The leadership of buyers may emphasis that price is not the most important element for many times in negotiating process; but they still will not reply the email if providers really increase 5% of price. Recently, Devott quantitatively stimulates power distribution of each assessment element influence in outsourcing buyers’ decision process based on probability theory of decision scientific process, which can more correctly provide customized consulting services for international outsourcing marketing.

Price, ability, resources and experiences are always four elements to evaluate providers and provider countries. From these four elements, with penetration of globalization & mobile internet & talent flow, the differences of each provider countries and providers have become gradually smaller. However some elements those were not important in the past have become Game Chargers. Among them, the cultural fit from providers or provider countries has become a good example.

Lauren.A.Rivera from The New York Times has published a research report of American enterprise recruitment in 5th Jun, 2015. The report shows that there are more than 80% international enterprises take fit degree of culture and background as one of key standards of recruitment. After interviewed more than 120 leaders who have right to decide the result of recruitment, Rivera finds that it has become a common characteristic for American enterprises’ culture to choose new employees according to similarity of individual, not only for bank, consulting companies or law firms. Because if cautiously and appropriately use this method to choose new employees, it can bring higher efficiency and profit ability for companies. Therefore, it is reasonable believed that this element has great importance in elevating and choosing outsourcing providers.

These practices and theories provide correct information for the international marketing of outsourcing providers that if have not suitable marketing people and information for buyers, it is difficult to overcome obstacles unless investment patching. So what is fit of culture and background? This concept is difficulty identified. Simply speaking, that means whether buyers can get along with providers outside of work. “For those people who have rights to make decision, fit degree doesn’t mean the values fitness between the applicant and organization, but harmonization with other people. Job has higher requirement for time and team work, so the professionals from each different level hope to recruit someone they like to consume time and hope to cultivate closed relationship with them.” Rivera said.

China’s enterprises those recently raise have known the importance for international enterprises entering into China market, and understood necessaries for themselves living in international market, but how to accomplish “localization” is real challenge. The report from Rivera introduces those local marketing talent and enterprises who have the most similar and suitable cultural background with decision makers from buyers is the best choices. Although to do China’s businesses of “Don’t count their Chickens until they are hatched”, it is also necessary to choose a good buyer. In currently international market, there are many targets, but lacking of real suitable enterprises.

This post is a personal or group view of Research and Advisory members and don't necessarily represent Devott's positions, strategies or opinions.

Devott Publications
The Selection of the TOP Global Outsourcing Destinations – China TOP 15 (TGOD China TOP 15) Ended and Its Rankings and Research Reports are Now Available Worldwide