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In both kinds of business relationships, however, identifying and addressing the "soft" risk factors has been neglected in favor of the more easily identified financial and legal factors. Yet repeated research shows that cultural mismatch and failure of cultural integration lead to poor strategic alignment, communications and execution, and are key reasons why business relationships fail.
Three distinct cross-cultural risk factors can have a critical impact on the success of an offshore outsourcing relationship. The first is commonly recognized, the second tends to receive lip service and the third tends to be unseen or avoided...
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