eSourcing in Latin America: Cultural Challenges and Opportunities

Summary

Latin America is becoming an increasingly attractive nearshoring option for American multinational companies. However, it is important for them to be aware of the cultural adjustments they will need to make, especially in e-sourcing practices.

Significant cultural differences exist depending on the markets and the size of business being contracted. Companies should:

• Build relationships and ensure that business is conducted in a more diplomatic, indirect and non-confrontational manner

• Understand and work with the differences in work ethic, style, and culture. This can mitigate the challenges and lead to mutually beneficial nearshore partnerships