IT-services outsourcing from Sweden to India has increased in the last few years and it is often regarded as a strategic measure to handle the increasing costs of IT-related development and maintenance operations. There are a number of advantages of outsourcing however, there are many challenges that outsourcing initiatives face. One of the challenges mentioned by many researchers is the cultural differences between the Swedish culture and the Indian culture. At the same time there is not enough research done about these cultural differences. The goal of this master''s dissertation is to find inter-cultural problems of IT-services outsourcing between Sweden and India.