Why managing global teams requires navigating cultural nuances

Editor’s note: The perspectives expressed in this commentary are the author’s alone. Serial entrepreneur and three-peat exited founder Matt Watson is the host of Product Driven and co-founder of Full Scale, a global staffing company. Click here to subscribe to the free Product Driven newsletter. 

Building global software teams is more complex than just finding talented developers — it’s about understanding and embracing cultural differences.

In a recent Product Driven podcast episode, I sat down with Oshri Cohen, an experienced fractional CTO who has managed development teams across multiple continents. His insights reveal just how critical cultural awareness is when building successful offshore teams.

The universal truth about global talent

One thing became crystal clear during our conversation — there are brilliant software developers everywhere.

As Oshri emphasized, “90 percent of software developers are not in the United States.”

The real challenge isn’t finding talented developers; it’s effectively managing teams across cultural boundaries.

Understanding cultural communication styles

Different regions have distinct communication patterns that directly impact how teams collaborate.

Here’s what we learned about various regions:

Middle Eastern developers tend to be extremely direct.

As Oshri noted from his experience, “They’ll tell you your shit stinks.”

This directness can be refreshing but may require adjustment for those used to more diplomatic communication styles.

In contrast, developers from some parts of India often require extremely detailed written specifications.

The key is ensuring everything is documented clearly and verified through explicit confirmation of understanding.

Local employment practices matter

At Full Scale, we’ve learned that understanding local employment laws and practices is crucial.

In the Philippines, for example, we hire all developers as regularized employees with full benefits — something not all companies do. This provides job security and government benefits that are highly valued in the local culture.

Many offshore companies treat developers like temporary contractors, which can create anxiety and uncertainty.

Understanding and respecting local employment norms creates a stable, committed team.

Social structures and workplace dynamics

What might seem like simple workplace interactions in the U.S. can have deeper implications in other cultures.

For instance, in some regions, public code reviews and direct criticism can be deeply problematic.

As Oshri points out, “Nobody likes public criticism, but in some cultures, it can be particularly damaging to working relationships.”

In many Asian countries, maintaining harmony in the workplace is paramount.

This means that disagreements or concerns might be expressed very indirectly, if at all.

Understanding these social dynamics is crucial for creating effective feedback and communication channels.

Want to go deeper? Watch this Product Driven podcast episode, then keep reading.

Work schedules and local customs

One often overlooked aspect is how local customs affect work schedules.

During Ramadan, for example, team members in Muslim countries may have different working hours.

In the Philippines, family obligations and local festivals are deeply important to the culture.

Recognizing and accommodating these differences shows respect and builds stronger teams.

Building trust across cultures

Building trust with global teams requires a deliberate, thoughtful approach that goes beyond standard management practices.

As Oshri pointed out, “You’re just some 2D image that they’ve never met before. You can’t just start barking orders.”

One of Oshri’s key practices is spending the first hour or two with new team members just talking about technology, sharing experiences, and getting to know each other as people.

This initial investment in relationship-building pays dividends in long-term trust and communication.

Trust isn’t built overnight.

As Oshri shared, “It doesn’t happen immediately. It takes a little bit of time. They have to trust you, they have to trust who you are.”

This is why staff augmentation often works better than project-based outsourcing — it allows time for real relationships to develop.

Respecting cultural differences

Perhaps the most important lesson from our discussion was about showing genuine respect for cultural differences.

Oshri maintains a calendar with holidays from all the countries where his team members reside.

This simple act of acknowledging and respecting cultural celebrations helps build stronger connections with team members.

The success of global software teams isn’t just about technical skills — it’s about understanding and embracing cultural differences.

When we invest time in understanding these nuances and adapting our management style accordingly, we create stronger, more effective teams that can truly leverage global talent.

The future of global software teams is built on cultural intelligence

The landscape of global software development continues to evolve, but one truth remains constant: successful teams are built on mutual understanding and respect.

Through my experience building Full Scale to over 300 employees and my conversation with Oshri, it’s clear that technical skills alone don’t determine success.

Here are the key principles for building effective global software teams:

1. Recognize that talent is universal — the challenge isn’t finding skilled developers, it’s creating an environment where they can thrive.
2. Invest time in understanding local employment practices and cultural norms. As we’ve seen at Full Scale, treating developers with respect and providing stable employment creates long-term loyalty.
3. Adapt your leadership style to match cultural contexts. What works in New York might not work in Manila or Mumbai.
4. Build trust deliberately and patiently. As Oshri reminded us, “You’re not just sending JIRA tickets — you’re building relationships.”

Most importantly, remember that cultural differences aren’t obstacles to overcome — they’re opportunities to build stronger, more resilient teams. When we embrace these differences and lead with empathy, we create software teams that don’t just function across borders – they excel because of their diversity.

The future belongs to leaders who can bridge cultural gaps and create environments where developers from any background can contribute their best work. As more companies build global teams, those who master cultural intelligence will have a significant competitive advantage in attracting and retaining the best global talent.

Matt Watson is the host of Product Driven and co-founder of Full Scale, a global staffing company that helps businesses build and scale their engineering, finance, marketing, and admin teams. A three-time founder, he grew VinSolutions to $30M ARR before a $150M exit, later sold Stackify in 2021, and continues to share insights from his entrepreneurial journey through his podcast and this newsletter.

Click here to subscribe to the free Product Driven newsletter. 

Click here to connect with Matt Watson on LinkedIn.

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