Tag Archives: culture

The role of the power-distance index (PDI) in software outsourcing

An excellent post by Dave Rodenbaugh on one of the cultural issues of outsourcing (specifically offshoring) in his post about why outsourcing continues to fail.

The subject is the Power-Distance Index differences between providers and suppliers in different countries, and how this can affect things. In a nutshell, most countries who do cheap outsourcing are high on the DPI index, meaning that they don’t “tell things as they are” in the way we do in low-DPI countries, in particular when reporting status/problems to project managers.