Why India ticks differently: relationship culture vs. Western efficiency

German-Indian trade reached a record high of US$33.4 billion in 2024. Bilateral trade volume has nearly doubled since 2016. German exports to India rose by 2.6 percent to US$18.3 billion in 2024 alone – a new record high.

But while the figures are impressive, many projects fail not because of technology, but because of cultural misunderstandings.

The central challenge: India is a relationship-intensive culture

What does this mean in concrete terms for German companies?

In Germany, time is money and efficiency is king. We expect clear statements, direct communication, and quick decisions. With Indian partners, things work differently.

Relationships come before business

A face-to-face meeting is not optional in India – it is mandatory. Emails and video conferences are not enough to build trust. German managers who think they can manage an offshore project from Munich often get a nasty surprise.

India operates on the principle of relationships first, business second. This means that

you have to travel to India to get to know potential partners in person. You have to invest time in business lunches that are not just about business. Family, sports, culture – all of these are part of building relationships.

You have to be present regularly, not just once to sign the contract.

Communication: indirect instead of direct

Germans appreciate clear statements. Indians cultivate an indirect communication style so as not to embarrass anyone or cause them to lose face.

When an Indian developer says “no problem,” it can mean “I understand” or “This will be difficult, but I don't dare say no.”

From DevRiseUp's perspective, this is one of the biggest pitfalls: German project managers interpret “no problem” as a commitment, while their Indian team has long since identified difficulties but does not address them openly.

Time is interpreted more flexibly

Punctuality is sacred in Germany. In India, time is understood cyclically – delays are part of the process, deadlines are negotiable.

This does not mean that Indians work unprofessionally. It means that they evaluate time pressure differently and that an aggressive German schedule meets with resistance.

Indian negotiating partners deliberately use German time pressure as a means of exerting pressure. Anyone who rushes to India to close a deal in three days will pay more or make concessions.

Hierarchies are more pronounced

In German companies, hierarchies have become flatter. Employees have decision-making leeway and address their superiors directly.

In India, clear, finely differentiated hierarchies prevail. Decisions are made from above. An Indian developer will rarely disagree or solve problems on their own if it is outside their authority.

This can be frustrating for German teams: Why doesn't anyone speak up when something goes wrong? Why is everyone waiting for instructions?

The solution: Cultural understanding as a factor for success

59 percent of companies operating in the US and Europe already use IT outsourcing in India, with another 22 percent considering it. Demand is growing because India's economy is booming with 6.5 percent growth in the 2024/2025 fiscal year and is producing over 1.5 million engineers annually.

But only those who understand the cultural rules of the game will be successful.

In practice, this means:

Schedule regular personal visits, not just at the start of the project. Take relationship management seriously – birthday cards, Diwali greetings, regular personal exchanges. Pay attention to indirect communication and ask specific questions instead of taking answers at face value. Respect clear hierarchies and ensure that the right levels communicate with each other. Be patient with scheduling and negotiations.

India offers enormous opportunities – but not for free

The IT outsourcing market is expected to dominate 55 percent of global volume by 2025. India is and remains the number one destination for offshore development.

But anyone who thinks they can ignore cultural differences will fail. Communication costs eat up savings, projects are delayed, and quality suffers.

From DevRiseUp's perspective, cultural competence is not a nice-to-have, but the basis for successful collaboration. Those who have it – or have a partner who has it – benefit from one of the most dynamic tech markets in the world.

Ready to take advantage of the opportunities in India professionally? Contact us for a no-obligation discussion about how hybrid outsourcing with German project management and Indian implementation works.

Sources

About the Author

Joerg Strothmann As a CTO with over 30 years of professional experience in hardware and software development at distributed locations (Europe and India), I have gained a lot of experience, which I like to share.

Joerg Strothmann