Here’s Why Multicultural Teams Produce Better Software

A recent research conducted by the Boston Consulting Group (BCG) in 2022 involving 1700 companies from eight countries has revealed that businesses with a higher level of diversity tend to experience a 9 percent increase in profits and 19 percent more income from innovation. This data clearly indicates that teams comprised of individuals from different backgrounds and perspectives are more likely to be successful and come up with new and innovative solutions.

The renowned magazine Forbes has declared the findings of the study to be “massive” for IT companies, start-ups, and other industries in which innovation is key to growth. This implies that diversity is not just an ideal objective to strive for, but is actually essential for any organisation that wishes to be successful.

According to a report from Scientific American, incorporating diversity into teams and organisations can be a source of inspiration that leads to better decision-making and fewer problems. This is because it encourages curiosity and allows for a broader range of perspectives to be considered when making decisions. Ultimately, fostering a diverse environment can have a positive impact on the success of any organisation.

According to Forbes, the presence of diversity within a team is beneficial as it promotes a variety of perspectives and approaches to problem-solving. This can lead to stronger and more comprehensive solutions, as the multiple sides of an issue are taken into consideration. Ultimately, this can result in an optimal answer to the problem.

The Boston Consulting Group’s (BCG) Diversity Index evaluated disparities between individuals in regards to age, nationality, education, employment history, and career trajectory. The National Origin factor, which is calculated by measuring the percentage of the workforce that is not from the same country as the parent firm, was found to be the most significant indicator of both creative output and financial success.

It is widely accepted that increasing workforce diversity can have a positive impact on productivity and encourage creative problem solving. However, according to the Boston Consulting Group, it is not enough to simply hire individuals from different backgrounds. In order to achieve the desired results, an active strategy must be employed – one that encourages participation from all involved. Without an active approach, any attempts to benefit from a diverse workforce will be doomed to failure.

The diverse perspectives offered by a range of team members can be of great benefit to the performance of a team, as Michael Archibald, Chief Technology Officer of SalesRabbit, a software company that assists with sales, can attest. SalesRabbit has seen the rewards of recruiting several Asian developers who work remotely, with their varying ideas and backgrounds proving more advantageous than solely filling a skills gap that would have otherwise delayed local recruitment and been expensive.

Michael noted that the engineers based in Asia bring a variety of cultural insights and growth strategies to the table. This has enabled us to open ourselves up to new ways of thinking, and thanks to the diverse perspectives in our office, we have been able to discover innovative methods to enhance the quality of our work.

In order to achieve the desired goals, the team was encouraged to take a proactive stance and to not accept the current state of affairs. This included updating to the latest version of the platform, rewriting the SalesRabbit Application Programming Interface (API) using a more effective programming language, and automating processes that had previously been completed manually. These measures were eye-opening for the team and enabled them to move forward with their objectives.

Michael acknowledged that the team had come to the realisation that they may need to consider different perspectives since people were living and working in diverse environments – both their own homes, as well as those of their colleagues, which were being accessed through Zoom. He then encouraged everyone to pay close attention to the suggestions that were being offered, as they were likely to be of great value. Indeed, the team was excited about the possibility of hearing such insight.

With the advent of remote working for engineers, it has become increasingly easy for businesses to build engineering teams that have a diverse range of experience and expertise. As software teams become more adept at working completely remotely, the geographic location of potential candidates is no longer as important a factor when recruiting. SalesRabbit leveraged Works to staff its engineering team in Asia. Works specialises in providing staff augmentation services, connecting U.S. corporations with highly skilled engineers from all over the world for extended periods of time.

Related Article: How to Recruit Diverse Talent for Your Organisation: Diversity Hiring

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