EGYPT

CULTURE & TRUST-BUILDING IN OUTSOURCING

5. December 2024, Birthe Ravn Greisen

THE DUALITY OF BUILDING TRUST AND HIGH PERFORMANCE IN IT OUTSOURCING

EUROPEAN OUTSOURCING TO EGYPT

For outsourcing IT partnerships to be successful, IT service providers must exhibit excellence in two dimensions:

  1. Strong technical expertise
  2. Strong cross-cultural collaborative and communication skills

The Dual Concept of Building Trust and High Performance

Unlike domestic outsourcing, offshore outsourcing projects also include the management of cross-cultural dynamics in teamwork and collaboration.

Despite some cultural overlaps between Egypt and Europe, differences in business communication, work ethics, and management styles can create misunderstandings. In IT outsourcing partnerships, the most important individual-level skills for successful cross-cultural interactions and collaboration are:

  • Communication
  • Conflict resolution
  • Trust-building techniques

This article explores trust-building in European IT outsourcing to Egypt.

The Importance of Trust

Building trust is a vital component of successful outsourcing relationships, leading to collaboration and effective teamwork.

However, how to build trust varies across cultures. Actions perceived as trust-building in one culture may unintentionally cause offense in another. Consequently, cross-cultural flexibility in trust-building is a critical strategic element in outsourcing partnerships.

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Trust-Building for Egyptian Service Providers

For Egyptian service providers, trust is built on two levels, one is related to organizational trust, and the second is related to individual and team skills in cross-cultural collaboration. The second level is the foundation for the company to establish competitive organizational trust.

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1) Organizational Trust

To make a company a preferred and trusted partner in the competitive outsourcing market, Egyptian service providers must establish a reputation for reliability and high-quality services. This involves demonstrating consistent performance, improvement, and innovation, meeting client expectations, and maintaining transparency throughout the outsourcing process.

Company trust also depends on the credibility of the workforce. Service providers need to emphasize the upskilling of employees, focusing on high-tech expertise and soft skills such as communication and problem-solving.

This article will focus on the importance of trust and trust building techniques in individual and team interactions in cross-cultural collaboration. This level is  the foundation for organizational trust.

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2) Cross-cultural trust in individual and team interactions in cross-cultural collaboration

Employee Development Opportunities and Motivation is the foundation for high performing individuals and teams. This includes providing employees with tools for developing technical skills and tools and training for developing competencies in cross-cultural collaboration.

Evidence shows that the backbone of collaboration and effective and high-performing teams is trust.

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Trust

Trust is centered on our expectations of other people’s actions and capabilities. It involves two key dimensions:

  • Competence: Trust in team members‛ ability to perform their roles effectively depends on their demonstrated skills, knowledge, and expertise. (Cognitive trust)
  • Character: Trust also includes the belief in team members‛ integrity and intentions, grounded in interpersonal relationships and emotional bonds. (Affective trust)

When trust is present, team members are more likely to collaborate, share information, and rely on one another, significantly improving team performance.

Trust in the form of psychological safety, emphasizing an individual’s perception of their work environment and whether it is safe for speaking up. Key components of psychological safety include:

  • Freedom of Expression: Employees feel secure in communicating their thoughts, advocating for their ideas, and dissenting opinions.
  • Supportive Reactions: A positive team dynamic ensures that suggestions or feedback are met with respect and constructive engagement.

Psychological safety is the foundation of learning behaviors and innovation. When team members perceive psychological safety, they are more likely to take initiative and collaborate effectively.

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Trust-building in Europe and Egypt

Building trust in European business culture, particularly in Northern Europe, is predominantly task-based. It is built on performance, reliability, and consistency. Efficiency and scientific truth are core values​. Business is Business.

In Egypt, trust-building is more relationship-centered, shaped by personal connections and emotional bonds.

Of course good relations and knowing the right people count in Europe, however, trust in business is primarily task-based.

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Effective collaboration for Egyptian IT service providers requires understanding European task-based trust, delivering on promises, and demonstrating technical competence. Relationship-building should be maintained as a cultural strength.

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Deliver on Promises. Reliability and competence are crucial for earning European partners‛ trust. This requires the Egyptian service provider to acknowledge that trust is lost if a company does not deliver on promises.

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Innovation with Alignment. While creativity and innovation are highly valued, ensure suggestions for changes align with agreed plans. Engage in discussions to secure client buy-in for innovations​.

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Effective Communication.  Thought processes and ideas should be shared, and ideas should be advocated during discussions. Adapt to European preferences for direct, fact-based communication. To maintain transparency and trust,​ relevant information should be shared, even if it is unfavorable.

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Keep deadlines. Due to their interdependent planning systems, meeting deadlines is critical for European partners. Missing a deadline can disrupt project workflows and damage trust. It is important not to commit to unrealistic timelines to please European partners. If a delay is coming up, European outsourcing team members/partners should always be contacted well in advance and informed of the reasons and history of the delay.

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Punctuality, and Planning. Punctuality in meetings reflects respect and professionalism in European contexts. Do not be late.

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Adhere to the established plans, or schedule a meeting if changes are needed. If adjustments are necessary or preferred, communicate clearly with the client and explain the reasons behind the changes. Discuss the pros and cons thoroughly. Regular check-ins should be conducted to ensure that the team and the client are aligned.

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Who is responsible?

While the IT service provider (the vendor) must adapt to stay competitive, successful collaboration and teamwork require both parties to engage.

Therefore, the outsourcing company must also demonstrate cultural flexibility.

For the outsourcing project to be successful, leaders and team members representing the European outsourcing company must be capable of building trust in cross-cultural teamwork.

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Investing in cross-cultural training at the start of a project significantly increases the chances of success. It minimizes misunderstandings and builds smoother collaboration, and continuous improvement, positioning the company as a trusted, reliable high-quality outsourcing partner.

Do you have any questions?

Contact:

mail@cultures-across.dk

FOR CROSS-CULTURAL TRAINING AND WORKSHOPS:

VISIT: RAVN cultures-across – services

For information about training and workshops: contact: mail@cultures-across.dk

FOR MORE INSIGHTS:

Egypt Insights

Always consider the context of your specific situation. When analyzing your context include individual differences, company and industry norms, regional cultural norms, and your personal and company goals. The extent to which cultural differences matter depends on your specific context.

Remember, we don’t deal with cultures,

we deal with individuals.

Birthe Ravn Greisen

Cross-cultural trainer, MSc in Economics and Business Administration, Author