Slowly it seems Indian companies are reducing the number of expatriates on their payrolls and are focusing on hiring Indians with the requisite global experience. Though expat hiring was previously growing at a rate of 10-12% per year until 2012 since then there has been a major decline and this is expected to continue for a few years.
It is estimated that there are currently around 39,000 expatriates (of which nearly 10% are thought to be US citizens) working in India which is down from a peak of 49,000 in 2012. Whilst companies are still willing to hire expatriates they are now far more focused on who they’re looking for with 70% of hires at higher-level positions and 30% at mid to lower-level positions.
The CEO of MyHiringClub.com Rajesh Kumar said: “Yes, companies are willing to get expatriates on board with the global experience, but on a conservative mode. What is most interesting to notice in India is that it is not just multinational companies or the large Indian organizations that are employing expats. Some of the medium-sized enterprises with ambitious plans have also been hiring expats in a bid to achieve their goals.”
India still remains an attractive destination for expatriates those that are looking aren’t being offered the kinds of packages that used to be available.
“Almost 30 percent of expats are open to looking at modest compensation packages which could be termed as a ‘pay cut’ keeping in view the upsides associated with specific experience of working in a large, complex and active emerging market such as India,” stated executive search firm Spearhead InterSearch Founder and MD Jyorden T Misra.
With a steady supply of Indians returning to India who has managed to attain the desired skills in their time abroad companies are able to focus more on their budgets and only tending to seek expatriates when costs are similar to hiring Indians.