GHRM REPORT FINAL

8/7/2019 GHRM REPORT FINAL

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GHRM REPORT

ON

INFLUX OF EXPATRIATE POPULATION

(Submitted to: Professor Shrimi Srivastava)

Submitted by: Group-9

Minita Gupta (11)

Sayani Mahapatra (20)

Lipsita Badajena (27)

Jains Chereath (38)

Prachi Tandon (51)

Debanti Lahiri (55)


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ACKNOWLEDGEMENT


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CONTENTS

S.NO TOPIC PAGE NO

1. INTRODUCTION4-14

Meaning of Expatriate.......5

Expatriates in developed countries....8

Popular Expatriate Destination..9

Expatriate statistics and characteristics...............10

Expatriate Benefits...........................................12

Expatriate Challenges.......................................14

2. STUDY OF EXPATRAITE IN THREE DIFFERENT

COUNTRIES...15-

35

India.............................................................16

OECD Countries...................................25

Saudi Arabia......33

3. CONCLUSION..36

4. BIBLIOGRAPHY.38


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INTRODUCTION


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INTRODUCTION

The 2010 Global Workforce Studypinpoints a watershed moment in theevolution of the employment relationships around the world. From the global

recession and financial defaults to changes in business models and strategicpriorities, both employers and employees are being forced to revisit somefundamental assumptions about their implicit and explicit "compact" with oneanother.

The war for talent never ends.

In 2010, more than 200 million people will be living abroad. Whilethe number of worldwide expatriates increases, it is hard to quantifythe exact size of the worldwide expatriate market.

EXPATRIATE DEFINATION AND MEANING

The word expatriate derives from the Medieval Latin expatriatus, which is thepast participle ofexpatriare (to leave one's own country).

According to this definition, expatriates are people who have left the countrythey were born in and are are living in another country.

In many cases, the term expatriate refers to people that do not plan to reside

in their new country permanently and normally retain their citizenship forpractical purposes. In this strict sense, expatriates differ from immigrantswho usually plan to reside permanently in a new country and acquirepermanent citizenship there. In addition, many people use the termexpatriates only for skilled workers from developed countries who aretemporarily working abroad (i.e. American expatriates in Spain), thusdifferentiating between expatriates and economic migrants who move abroadfor socioeconomic reasons.

In reality, these distinctions are becoming more and more blurred. While thenumber of highly skilled expatriates from developing countries increases,

there are also an increasing number of expatriates from developed countriesthat are moving abroad for retirement and other reasons. For example, thereare today skilled workers from India working worldwide and and an increasingnumber North American expats retiring in Central and South America.


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Depending on the exact definition of expatriates the following groups ofinternational migrants can be counted as part of the expatriate market:

Professional working abroad, often on limited length assignments(some people restrict the term expatriates to this group)

Lifestyle migrants that move abroad in search of a better way of life.This includes the increasing number of pensioners that move to hottercountries, because of the climate and lower cost of living

International students studying abroad Economic migrants, people that move abroad for economic reasons as

they can earn significantly more money and/or have an improvedstandard of living


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FUNCTION AND APPLICATION OF EXPATRIATE WORKERS ININTERNATIONAL ASSISGNMENTS

The function and application of expatriate workers in internationalassignments was originally intended as a way to initiate, expand and control

international operations. Currently, the purpose of international expatriateassignments has evolved along with the changing globalization trends.Expatriate international assignments require that cost effectiveness andappropriateness issues be considered. Since globalization is now the currenttrend, it is important to be able to manage these international workersstrategically and effectively.The study reveals that organizations have an increasing amount ofexpatriation in all four types of international assignments.

TYPES OF EXPATRIATE ASSIGNMENTS

1. Long-term expatriate assignments. Expatriate assignment isreferred to as a long-term assignment where the employee and his/herspouse/family move to the host country for a specified period of time,over one year.

2. Short-term expatriate assignment is an assignment with a specifiedduration, usually less than one year. Family may accompany employee.

3. International commuter is an employee who commutes from thehome country to a place of work in another country, usually on aweekly or bi-weekly basis, while the family remains at home.

4. Frequent flyer is an employee who undertakes frequent internationalbusiness trips but does not relocate.

The number of people moving country is increasing across all expatriatecategories - irrespective of motivation, geographic origin and socialbackground. While the percentage of migrants in the total population ofdeveloped countries continues to increase, there are also an increasingnumber of expatriates from developed countries that move abroad forprofessional or personal reasons.
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EXPATRIATES IN DEVELOPED COUNTRIES

In developed countries, expatriates and migrants now account for almost

10% of the total population, making them an attractive target group for manyindustries. However, the countries with the highest percentage of expatriatesare in the Middle East. In the United Arab Emirates, expatriates make upmore than 70% of the total population, followed by Kuwait with more than60% (United Nations, 2005 ). In Europe, the country with the highest ratio ofexpatriates is Luxembourg (more than 30% of total population), followed bySwitzerland (more than 20%).

When it comes to total numbers, the US is leading the worldwide ranking withmore than 38 million expatriates living there, followed by the Russian

Federation (12 million) although this figure is skewed by nationals fromformer USSR states. In Europe, the ranking is led by Germany with more than10 million foreigners living there, followed by France. However, this picturemight change significantly in the future; Germany and France host a lot ofmigrants that have moved there over the last few decades, the country withthe highest number of inbound arrivals is today Spain.
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Irrespective of their exact number, expatriates and migrants have become anincreasingly important socioeconomic factor in developed countries, changingcultural habits and the rules of economics and marketing. This trend is likelyto continue in the future, with more and more developed countries becomingmulticultural societies.

POPULAR EXPATRIATE DESTINATIONS

The number of expatriates moving to a certain country should be goodindicator of a countrys attractiveness. However, this figure does notnecessarily correspond with the quality of life for expatriates in this countryas much migration is motivated by economic opportunity. Balancing short-term economic gain against varying levels of comfort living in anothercountry is a key decision point for many expats.

When it comes attracting expatriates, Spain is leading the ranking ofworldwide expatriate destinations. In 2008, the country welcomed almost800,000 foreigners, followed by Germany and the UK (Eurostat, 2008). In2008, expatriates already accounted for 11.4% of the Spanish population,and this number is expected to increase to some 20% in the future. However,the worsening economic outlook in Spain points to a reversal in these figuresso the picture could change rapidly over the next couple of years.


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EXPATRIATE STATISTICS AND CHARACTERISTICS

When talking about expats as a group, it is important to bear in mind thatthere are large differences between one country and another. However, wecan generalise that compared to the average, expatriates tend to more highlyeducated, have a higher than average income and face some very specificchallenges when moving abroad (like learning the local language)

HIGH EXPATRIATE INCOME

Many expatriates earn a high income. The average annual income of Britishexpatriates was 67,000 (~80,000) in 2007, or 43% above the UK average.More than 30% of expats earn expatriate salaries in excess of 100,000(~120,000) per year).In additions to their salaries, many expat also receivespecial expatriate benefits that go significantly beyond the benefits of otheremployees. These can include relocation help, accommodation benefits andspecial family benefits such as financial support for private schooling.

LUXURIOUS EXPAT LIFESTYLE

Due to their higher incomes then average incomes and addition support fromemployers, many expatriates experience a more luxurious lifestyle abroadthan at home.
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More than half (58%) of expatriates save and invest more money abroad than

in their home country - despite spending more money abroad than at home.After their move abroad, expatriates tend to spend more on food (+25%),shopping (+22%), accommodation (+18%) and socializing (+15%).Nevertheless, their expatriate benefits often allow them to enjoy luxuriesabroad that they didnt have at home, such as private health care and privateeducation for their children.

LANGUAGE AND OTHER PROBLEMS

When moving abroad, expatriates face a range ofchallenges. Many expats donot speak the local language of the country theyre living in, although anincreasing percentage tries to learn it. This language barrier makes it harderto deal with local service providers, thus generating a need for specializedservices. Despite their language problems, an increasing number ofexpatriates try to make friends within local communities, which goes againstthe stereotype of the typical expat that doesnt try to integrate into thelocal society.

CULTURE PROBLEMS

When it comes to making new friends and adapting to the local culture, thereis also a big difference between destination countries. According to HSBCExpat Explorer Survey, Canada seems to be the most welcoming countries toexpatriates, with almost all (95%) of respondents claiming that they madefriends with local people. This was followed by Germany (92%) and Australia(91%). The United Arab Emirates was revealed to be the most difficultcountry to make friends with local, with only half (54%) of expatriates saying
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they made any local friends at all. This "ease of integration" also seems to bea decisive factor when it comes to the most popular expatriate destinations.Although socializing with other expats partially compensates the lack of localfriendships, it certainly doesnt ease integration in the local society and oftengives the impression that expatriates are not interested in integrating or

prefer their own social circles. That said, many expatriates tend to makefriends with other expatriates in the country they live in.

QUALITY OF EXPATRIATE LIFE

When it comes to quality of life, however, the picture becomes morecomplicated. According to the HSBC Expat Explorer survey (2008), thereseems to be a very strong difference between the subjective experience ofexpatriates living abroad and the more objective criteria like the standard ofliving.

The most popular countries in terms of expatriate experience are Germany,followed by Canada and Spain. In these countries, expatriates tend to makelocal friends, learn the local language, join a community group or even buy aproperty. Expatriates in these countries find it generally easy to integrate,including their family and children (over two thirds of expatriate childrenspeaking two or more languages!).The worst countries in terms of expatexperience are the United Arab Emirates and China, where most expatriatesfind it extremely hard to integrate into local society or make local friends.However, when it comes to hard facts such as financial wealth,accommodation and luxury, the picture changes drastically. On these criteria,the most attractive expatriate destinations are Singapore, followed by the

United Arab Emirates and the United States. The highest expatriate salariesare paid in India and Hong Kong, where almost half of expatriates earn morethan 100,000 (~120,000) per year.

EXPATRIATE BENEFITS

Most expatriates receive a range of benefits that goes significantly beyondthe benefits of other employees. These expatriate benefits reflect the specialsituation of expatriates and often include the following:

SALARY:In many cases, the assignment abroad is accompanied by a

significant salary increase. So many expatriates receive expatriatesalaries that are considerably higher than the salaries the earnt athome. In addition, they normally also receive a considerable amount ofexpatriate benefits.When evaluating expatriate salaries, it is important to remember thatsalary increases represent not only an incentive for overcoming theproblems of moving abroad, but also usually reflect a significantincrease in responsibility assigned to the employee. Expatriates
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working abroad normally have less corporate support than at home andoften have to take more decisions on their own.

RELOCATION BENEFITS: Besides covering the cost of the actualmove, relocation benefits often cover special assistance abroad, i.e.through a relocation agent.

ACCOMMODATION BENEFITS: If accommodation costs aresignificantly higher in the destination country, most companies pay

their expatriates special benefits or provide subsidized or free housing.Besides financial incentives, direct help to find accommodation isappreciated by most expatriates, since the search for accommodationis generally on of the most stressful and time-consuming challenges ofthe move.

LANGUAGE TRAINING: Expatriate benefits for language training notonly increase the professional capabilities of expatriates sent abroad,but also help them integrate better in their new environment. Ideally,the language training should start well in advance of the relocation.

EXPATRIATE FAMILY BENEFITS: When sending expatriates abroad, itis important to remember that the relocation affects the whole family,

especially the spouse. Family problems are therefore one of the mostcommon reason for expatriates to break off their assignment earlierthan planned. To ease the family relocation and tensions that go alongwith moving abroad, companies often offer support and financial help infinding schooling for kids. If the expatriates spouse has been workingbefore, some companies may also help them obtain a work visa and ajob to compensate for potential loss of income. Non-working expatriate


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spouses might receive help in finding unpaid activities (such asvolunteer work or studies).

EXPATRIATE TRAINING AND COUNSELLING: Although these areless common, training and counselling are an important part ofexpatriate benefits. Before departure, expatriates should receive cross-

cultural training to help prepare for the challenges abroad. After theirassignment abroad, expatriates could receive repatriation assistance tohelp them readjust back home. Since the move back is often even morechallenging than the move abroad, many companies try to provide achallenging assignment upon return.

In general, expatriate packages and expatriate benefits tend to be adapted tothe individual situation and assignment of each expatriate. A young singlegraduate going abroad will face different challenges on his move abroad thana senior manager with family and children.In addition, the expatriate destination also has a significant impact on the

expats situation. While some countries like China and the United ArabEmirates are often regarded as hard destinations, Western Europeancountries such as Spain or Germany are often viewed as easier destinationsto adapt to. This is also reflected in expatriates salaries and benefits: Themore difficult the destination is perceived by expatriates, the financialincentives and expatriate benefits on offer tend to be more attractive.

EXPATRIATE CHALLENGES

Though the move to a new country might seem a great experience at first,many expatriates have a hard time getting things done in the beginningadapting to their new life abroad.
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The most common problems faced by expatriates include Learning the local language Finding a place to live Making new friends Sorting out finances and healthcare

Finding a school for the children

Younger expatriates have fewer problems with learning the local language,but have a harder time making friends and settling the practical issues oftheir move.On the other hand, older expatriates often move abroad with significantexpatriate benefits that solve most of the practical problems like the searchfor accommodation, but they have a harder time learning the local language.

As a general rule, many expatriates seem to underestimate the challenges ofmoving abroad. According to a survey of Just Landed among Germanexpatriates in 2008, 68% of expatriates found the move abroad moredifficult than expected, while only 8% found it easier than expected. Thebiggest problems mentioned of German expatriates were

Adapting to the local culture (85%) Finding new friends (72%) Learning the local language (42%) Finding accommodation (38%)
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STUDY OF EXPATRIATESIN THREE DIFFERENT

COUNTRIES INDIA OECD COUNTRIES SAUDI ARABIA

EXPATRIATE IN INDIA


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India is known to be a major exporter of expatriates, with many Indiansholding management positions in international companies located in Asiancountries. However is also receiving an increasing number of inbound expats.According to reports in 2006, over 50,000 expatriates have flocked to work inIndia, of which nearly a quarter reside in Bangalore. A rapidly growing

economy has made India a more attractive place for expats to work in and itis no longer tagged as a `hardship posting'.

To address skilled labour shortages, India launched the Overseas Citizenshipof India program in December 2005. The program provides anyone born inIndia, or whose parents or grandparents were born there, a multi-entry, multi-purpose, lifelong visa, making it even easier to live and work in India. Theinflow of expats into India will include an increasingly large component offoreign nationals of Indian ethnicity.

For the past five decades, India's best and brightest were lured by the

glamour of the West. Today, growing numbers of Europeans and Americansseem to be enchanted by India. Many of them are discovering headyprofessional opportunities in the country's booming information technologysector. Some have fallen in love with the culture, others with the weather, yetothers with the food and in some cases with someone here.By far the biggest draw for recent expatriates is the information technologyindustry, but they are also sprinkled in the hospitality and media industries

The main reason why expatriates make their home in India is

There was a time when multitudes of talented Indians fled Indian shores insearch of the ideal job and the perfect foreign posting with a prominentcompany. India was hemorrhaging droves of talented professionals to abetter paying and more appreciative overseas public. But the tide is changingand how.

A country with 9% growth rate can definitely take up young professionals inthe corporate industry at a faster pace and with a better paying salary. Todayalong with a growing number of Indians, American as well as Europeanprofessionals are finding India a good place to enter a lucrative profession! Abooming information technology, hospitality, retail, telecommunications,

insurance and media industry has made a large variety of niche jobs availablefor expats.

The main expertise areas for expats are the jobs that cannot be filled withlocal talent like voice and culture trainers for call centers or foreign languagetrainers. Higher level jobs are also given to veteran foreign professionals.Around 6,000 to 7,000 foreigners are issued residential permits each year


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and all of them consider Indian job tenures as a potential asset to their jobhistory.But along with the great salaries and prominent positions, India has also beenoffering a whole range of facilities which generally are not available abroad.

Cities like Bengaluru have a large expat population which is more than willingto guide newcomers. With a better salary, perks that are normally impossibleto enjoy in developed countries become affordable. Here are some: The sheer thrill of working in a booming economy can be addictive.

Most foreign nationals consider a three-year stint in India an asset totheir rsums.

Bigger houses in better localities, drivers, maids, nannies, andgardeners as well as a good support system have made life for workingexpat wives pretty easy.

Food, especially Indian, is relatively cheap but eating out in westernrestaurants could be expensive.

Due to the currency difference, transportation can be pretty cheap andeasy to get.

The administrative pay packets for all international staff arecompetitive in India, and most of the times are on par with global payscales.

Parents who worry about the education of their children have a widevariety of international schools with a great curriculum to choose from.

Medical facilities are good and on par with most international citiesespecially in the metros.

Social and cultural life in the metros is booming.

CHALLENGES FACING EXPATRIATE JOB SEEKERS IN INDIA

A study of the labor market in India reveals numerous challenges facingexpatriates wishing to work on the local economy, including:

Offshore Employment Placement Practices:Most expatriatesworking in India have secured their jobs prior to moving to India.

Work Permits: Although the US and India have an agreement thatenables their diplomatic spouses to work in each others countries,

most expatriate spouses from other countries do not have thisprivilege. Compensation Rates: Even when a person has a job offer, the salary

rates are exceedingly low. A good local salary is approximately 25% -30% of what professionals would earn in the United States or Europe.Many positions pay far less.


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Work Week and Vacation Days: Indian firms normally work 5 - 6days per week and grant fewer paid vacation days than offered by mostU.S. and European companies.

Working Conditions: Although most companies have air-conditionedoffices with good office infrastructure, many do not.

Culture of Work: Indian firms have no tradition of hiring consultantsor employing individuals who know that they will live in India for just 2-5 years. In addition, although English is often the official language ofthe workplace, it is not the informal language; workers withoutknowledge of Hindi can feel somewhat isolated in their daily work.

Licensing Issues: Some fields, including medicine and law, are noteasily open to expatriates due to specific constraints and licensingissues.

Geographic Issues: New Delhi is a very large city, spread over manykilometers with minimal transportation infrastructure. Moreover, thegrowth areas of the city are located 10-20 kilometers from residential

areas where most expatriates live, adding as much as a two hourcommute for some workers. Competition: Indias emerging middle class labor market is well

educated, and many workers with excellent skills are willing to work forlocal pay rates that are much lower than an expatriate worker is willingto consider.

Lack of Professional Volunteer Roles:it is difficult to findchallenging volunteer roles since charitable organizations have little orno experience supporting creative volunteers working in theirprograms. This situation limits opportunities.

High Touch in a High Tech Environment:In spite of the technology

boom, networking and personal connections are still necessary tolocate a satisfactory job.

OPPORTUNITIES FOR EXPATRIATE JOB SEEKERS

On the positive side, India is booming and there are real job opportunities:

English is the language of business in India. Although not used in allaspects of work, most growth industries require that their employees

use English daily. There seems to be a demand for accomplished nativeEnglish speakers and writers.

Indian Firms Offer Key Opportunities: There are some Indian firmsdeveloping new lines of work and contemporary business practices.They are open to hiring qualified expatriates for full-time work or in


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consulting roles. Although the salaries offered are less than optimal,many of these organizations offer roles of significance that areappealing to expatriates.

Expatriates Work in Interesting Roles: Expatriates can findinteresting, challenging roles, often with daily access to chief executiveofficers and policy-makers.

International Businesses and Non-profit Organizations: An ever-increasing number of international firms and non-profit organization areconducting business in India. Although they hire most of their staffmembers locally, many retain a small number of expatriate staff and

intermittent consultants. These organizations are often willing to hirequalified expatriates living in India instead of recruiting talent offshore.Salaries are usually competitive with international standards.

Buying Power of the Indian Rupee: A comparison of the relativepurchasing power of India and the United States reveals that Indias percapita GDP of $523 provides $2,686 in purchasing power. In the US, aGDP of $35,000 purchases $37,000 worth of goods and services.Therefore, a rupee-denominated salary purchases many more local

goods and services in India than the dollar equivalent salary buys goodsand services in the US.

Relatively High Value Placed on Qualified Expatriate Workers:Highly trained, experienced professionals from any country are valuedby organizations based in India. If an expatriate has the necessary skillsand expertise, a number of firms are willing to tailor their offers to meetthe applicants needs. Self-Employment Options:The largeexpatriate community and a growing Indian middle class create ademand for a number of goods and services that can be provided byself-employed individuals who target those individuals in theirmarketing plans.


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Meaningful Volunteer Opportunities: Although there is nosignificant tradition in India of nonprofit organizations using highlyskilled volunteers in their programs, a few of these organizations areopen to the possibility of talented, dedicated volunteers with specificskills.

EXPATS IN VARIOUS SECTORS IN INDIA

IT & ITES SECTOR:Indias information technology industry is becomingmore and more reliant on expatriate resource in order to fill key skills andtraining gaps experts report. The leading Indian software companies likeInfosys and Wipro both employ hundreds of foreigners.Infosys Technologies as being a company that is representative of currenttrends. This IT firm currently has over 100 expatriates employed withinmiddle and senior management positions.For a company like Wipro, which employs people from 70 differentnationalities in various countries, cross-cultural training. WiproTech has themaximum number of nationalities within various departments of Wipro.

PHARMA SECTOR: There is a huge dearth of clinical research professional inpharmacy sector in India. There is a need for core skills in drug research.Expats with such superior skills are adding value to the drug pharma sectorwith their expertise. They have experience in high end research and thusprove to be strength for the company who hire them.

BANKING SECTOR: Expats, especially from South East Asian countries arekeen to work in Indian banks. Private banks like ICICI, ABN AMRO andStandard Chartered are already having expats working with them. Since,there is a dearth of skilled persons in financial markets today; the banks arehiring increasing number of expats. As India is emerging as a global player,expats see huge professional growth opportunities in India. The foreigncandidates are also comfortable in working with Indian finance sector as thelacunae between the salary structure in India and other countries haveconsiderably reduced.

KPO SECTOR: Companies hire specialized business analysts expats to addvalue to their work and benchmark its employees so that they perform withsame efficiency. Evalueserve has 40 expats among total workforce of900employees. Moreover to deal with cultural issues, companies are activelyarranging training programs to help expats understand the company culturebetter.
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BANKING AND FINANCIAL SECTOR: there is a vast increase in the no. ofexpats in various banks and financial institutions in India in recentyears .Insurance firms typically hire expats to fill management positions infinance and actuarial services, in which the local talent pool is limited.

Increase In the number of expats working in different sectors Automobile 3 times

Banking and financial sectors - 5 - 6 times

Infrastructure 10 times

Pharma & life sciences 5 times

Retail and supply chain - 0.4 times

MOST POPULAR DESTINATION OF EXPATS IN INDIA

Many foreigners working in India are on assignment with multinationalcompanies from their headquarters. Bangalore was far more attractive andpeaceful, and this could have influenced their decision to stay on here.


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While most expatriates in Bangalore draw salaries equivalent to their Indiancounterparts in the profession, some, especially in the BPO segment,command higher compensation due to their international exposure andlanguage proficiency.

Banaglore's expatriate community has a wide cross section of people, fromCEOs of multinational corporations to recent graduates. Some of them canafford very affluent lifestyles, comparable to or even better than that in theirhome countries Bangalore ranks highly among the expatriate community.Several expatriates interviewed expressed a marked preference forBangalore, mainly because of the large expatriate community here and alsobecause of its weather, which does not get extremely hot or cold. Other citiesof choice include Pune, New Delhi, Hyderabad and Mumbai.

BANGALORE : Most popular expat destination in India

Bangalore has able to served expatriates in all manners, whether itInternational food joints like KFC & MC Donalds, or branded clothing like


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lifestyle, organic vegetable such as Namdharis or hang out places like Coffeedays, baristas or Leela coffee house etc,But most important of all these are education for their children, whichBangalore has again proved itself. It has good number of international schoolswhich facilitate expatriate parents to enroll their kids in them.

International schools like Trio World School meet all the criteria to call itselfTruly International School. They have international standard and mostlyforeign faculties and students from many countries. They have Cambridgecurriculum which is followed worldwide, so parents need to worry abouttransition of their kids schooling, when they return back to their country oncompletion of their project in India. There are also wealth of private schoolsthat rival or top those in the West. Some utilize Western education theory andoffer different types of learning environments, such as Montessori schools.There are dozens of English-language bookstores available. Art lessons,music instruction, horseback riding, and every other pursuit an expatriate

family might want for spouses and children abound.Cost of living is reasonable, comparing quite well with cities in WesternEurope and North America. Though this is expensive by Indian standards, thewell-fueled economy in Bangalore has brought a thriving sector of welleducated Indians and foreigners to the city. As of 2008 the price of anaverage 2-bedroom apartment might range from roughly $350 to $1,100 permonth.

There are also extensive communities of expats from every country that doesbusinesses in Bangalore 's IT and BPO (business process outsourcing) sectors.

Into these communities have come vast arrays of businesses that cater tothem, and service professionals in a variety of roles, speaking a babble oflanguages. Maids, cooks, and nannies can be found at reasonable cost,including those who speak English and other common expatriate languages.

RESOURCES FOR EXPATRIATE IN INDIA


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As there is increase in the influx of expatriate population every year in India,and India is becoming a hot spot for expatriates there are many resourcesavailable which make expat stay hostile and comfortable in country

RELIGION: Expatriate communities throughout India have establishedtheir own places of worship. The majorities are Christian churches, butthere are also several Jewish synagogues. Because of its largeexpatriate population, Bangalore is home to quite a few Christianchurches.

EDUCATION: India offers many educational opportunities. There is anextensive list of schools including international schools, private schoolsand state schools. International schools offer a wide range ofcurriculums including US, UK, AP, national and IB (InternationalBaccalaureate). New Delhi and Mumbai offer spacious, well-equippedinternational schools, but other smaller schools offer opportunities fornumerous nationalities. International schools are only open to foreign

nationals, so there is practically no Indian integration. There areAmerican, British, French, Japanese and Scottish schools scatteredthroughout the country, as well as numerous local Indian nationalschools.

EXPATRIATE WEBSITES AND RESOURCES FOR INDIA

ALLOEXPAT.COM is an information and resource portal for expatriatesliving in or moving to the Asia-Pacific region, including an online forumfor expatriates in India.

BRITISH EXPAT is a site for British citizens living abroad, featuring a

British Expat Forum, with a section on Asia, including India with asection on New Delhi and Mumbai.

EXPAT BLOG is a worldwide directory of blogs related to expatriatelife, with listings for India.

EXPAT EXCHANGE provides a wealth of resources and articles, as wellas a forum. The site has a few useful articles and links about India.

EXPATRIATES.COM is an online community for expatriates, has asection on India, with classified ads, links, and a bulletin board.

FAWCO (FEDERATION OF AMERICAN WOMEN'S CLUBSOVERSEAS), www.fawco.org, is an international network to support

American women living abroad with over 70 member clubs worldwide,including India. MEETUP lists group meetings in cities around the world to help bring

people with common interests together and promote the developmentof active local communities. Search for expatriate groups in India allover the country.

NEWCOMERS CLUB WORLDWIDE is a worldwide directory ofnewcomers clubs for newly arrived expatriates, including India.


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TALES FROM A SMALL PLANET, www.talesmag.com, is a webzinewith news, stories, links, excellent message boards, and otherresources for travelers and expatriates. The India section features "RealPost Reports" by expatriates, as well as useful links.

THREAT TO INDIAN WORKFORCE

The trend of expats occupying key positions and leadership roles is hittingthe Indian corporate these days. According to a recent study by CredenceResearch and Analytics (CRA), there are 40,000 expats in India presently; andout of them, almost 15% are in leadership roles. It is believed that expatmanagers have more abilities when compared to their Indian counterparts.Though Indian leadership has been long known for its passion, commitmentand ability to tackle diverse situations, expats demonstrate a higher risktaking ability, transparency and accountability. Expat managers act as key

source of innovations for the company and help in maintaining harmonythroughout the company. While some companies see this trend as a threatfor Indian talents, others see it as a sourcing strategy wherein companieslook out for the right candidate for a right job. Such companies debate thatwhile searching for a right candidate, skills and attitude should be given moreweight age and factors like nationality should be ignored.

From the perspective of labor markets, candidates feel that as more andmore expats may occupy key roles in companies in near future, this trend canpose a threat to their career progression. Besides this, some facts go againstexpats occupying key roles. This includes their commitment to stay for a long

term with the company, poor understanding of Indian markets andenvironment and ability to deal with diverse workforce.


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EXPATRIATE POPULATION IN OECDCOUNTRIES

In OECD countries, the retention of qualified persons and the return ofexpatriates constitute important challenges to which several countries havetried to respond. Several recent studies undertaken at the OECD havedemonstrated that the question is more complex than is often depicted(OECD). As a result, current statistics tend to show a rather imperfect image

of the actual extent of migration in general and of the movements of thehighly skilled in particular, both with respect to movements from developingto developed countries but also within the OECD area as well. With the 2000round of censuses, however, virtually all OECD countries have incorporated intheir census a question on the country of birth of persons enumerated, aswell as on their nationality. With this information, it is possible to provide, forthe first time, a detailed, comparable and reliable picture of immigrantpopulations within OECD countries, reflecting the cumulative effect ofmovements within and to the OECD area over the past decades.

EXPATRIATES OF OECD MEMBER COUNTRIES RESIDING IN

ANOTHER MEMBER COUNTRY

Much attention has been directed in recent years within OECD countries atthe emigration of highly qualified persons, attracted to countries where jobopportunities are more prevalent and research funding more generous. Solidevidence regarding the extent of this phenomenon has been notably absentfrom the public debate. Although the database described here does not allow

one to remedy this as yet with respect to recent departures, it does provide abroad overall picture of expatriation over the past decades.

In the 29 OECD countries currently under review, 36.3 million persons, i.e.46% of the total foreign-born population, come from another OECD country.In certain host countries, such as Luxembourg, the Slovak Republic, Ireland,Mexico, the Czech Republic and to a lesser extent Switzerland and Belgium,the share of the foreign-born from other OECD countries is very high


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(between 65% and 85%). At the other extreme, it is close to 24% in Hungary,Poland and Korea and only 11% in Japan.

The largest expatriate group consists of persons born in Mexico, with nearly9.5 million people, of whom the vast majority are resident in the United

States. The number of persons born in Germany and in the United Kingdomresiding in other OECD member countries is also large, more than 3 millionpeople for each of them. The number of persons born in Turkey, Italy and Poland andresiding in other OECD countries amounts to over 2 million persons each

OECD EXPATRIATES IN OTHER OECD COUNTRIES

Nationals registeredabroad

Native-born living abroad at

embassies or consultates 1(OECD Censuses)

United States 3 071 167 1 227 249

France 1 392 764 1 119 130

Switzerland 828 036 319 176

Australia 562 668 328 405

Japan 556 561 656 690

Expressed as a percentage of the total population, almost 24% of peopleborn in Ireland are currently living in another OECD member country . Othersignificant expatriate communities include persons born in New Zealand(16%), Portugal (13.7%), Luxembourg (12.8%) and Mexico (9.9%).

Within the OECD area, only the United States, Australia, Canada, Switzerland,Spain, Sweden, Luxembourg and Norway (in this order) are net beneficiariesof highly skilled migration from other OECD countries. The United Kingdomhas 700 000 more highly skilled expatriates in OECD countries than it hashighly skilled immigrants from other OECD countries. Comparable figures

exceed 500 000 for Germany, 400 000 for Mexico and 300 000 for Poland.France and Belgium have almost as many highly skilled immigrants from, asexpatriates, to OECD countries. This of course gives only a partial picture ofbrain drain / brain exchange, because it does not include movements of thehighly skilled between non-OECD and OECD countries. When movementsfrom all countries to the OECD are included, the picture changes significantly.


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HIGHLY EDUCATED

With the notable exceptions of some Central and Eastern European Countriesas well as Mexico, Ireland, Korea and Finland, highly skilled immigrationtowards OECD countries from the rest of the world systematically exceedshighly skilled emigration from OECD countries to other OECD countriesOn this measure (and provided that expatriation of the highly skilled to non-OECD countries can be assumed to be relatively uncommon), most OECDcountries would seem to benefit from the international mobility of the highlyskilled.

Within the OECD area, only the United States, Australia, Canada, Switzerland,Spain, Sweden, Luxembourg and Norway (in this order) are net beneficiariesof highly skilled migration from other OECD countries. The United Kingdomhas 700 000 more highly skilled expatriates in OECD countries than it hashighly skilled immigrants from other OECD countries. Comparable figuresexceed 500 000 for Germany, 400 000 for Mexico and 300 000 for Poland.France and Belgium have almost as many highly skilled immigrants from, as

expatriates, to OECD countries. This of course gives only a partial picture ofbraindrain / brain exchange, because it does not include movements of the highlyskilled between non-OECD and OECD countries. When movements from allcountries to the OECD are included, the picture changes significantly.


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One of the most striking examples of brain drain is British expatriates: Onaverage, 5.6% of the British population lives abroad as expatriates. This levelof expatriation more than doubles to 12.2% among the highly skilledproportion of the working population. Put another way, more than one out of

ten highly skilled British workers lives abroad.

The difference between the number of highly skilled emigrants to OECDcountries and highly skilled immigrants from all countries is largely positive inthe United States (+8.2 million), Canada and Australia, but also in France andGermany, even though these countries have a significant number of highlyskilled expatriates in other OECD countries. Highly skilled immigrationexpressed as a percentage of the total highly skilled workforce is particularlysignificant (over 20%) in Australia, Luxembourg, Switzerland, Canada andNew Zealand. The percentage of the highly skilled who are expatriates isbelow 10% for most OECD countries and particularly low in Japan, the United

States, Spain and Australia. Conversely, more than 10% of the highly skilledborn in Switzerland, Portugal, Austria, or the United Kingdom are living inother OECD countries. This percentage is over 20% for three countries:Luxembourg (22.2%), Ireland (24.2%) and New Zealand (24.2%). Thisphenomenon is the result of pull factors attributable to selective migrationpolicies in receiving countries, but also to other factors such as the fact thathighly qualified persons are more tuned into the international labour market


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(because of social capital, language skills, access to information) and havemore resources to finance a move.

PERSONS WITH TERTIARY EDUCATION BY PLACE OF BIRTH, SELECTED

OECD COUNTRIES

Native-Born Foreign-Born Expatriates

Canada 31.5 38.0 40.6

France 16.9 18.1 36.4

Germany 19.5 15.5 30.4

Hungary 10.7 19.8 29.6

Korea 26.7 32.2 44.2

New Zealand 27.3 31.0 44.6

Sweden 22.8 24.2 40.1


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Switzerland 18.1 23.7 36.5

United States 26.9 24.8 49.9

Among non-member countries the biggest expatriate community is thatoriginating in the former USSR with 4.2 million people, followed by the formerYugoslavia (2.2 million), India (1.9 million), the Philippines (1.8 million), China(1.7 million), Vietnam (1.5 million), Morocco (1.4 million) and Puerto Rico (1.3million)18. Among persons with tertiary education, the former USSR still ranksfirst (1.3 million) with India having the second largest expatriate community(1 million).

In settlement countries, such as Australia, Canada and New Zealand23,

permanent immigration is subject to a points system with an increasingemphasis on the potential immigrants profile (age, education, skills, workexperience). Permanent skilled immigration to these countries hassignificantly increased in the past four years (by almost 25%) and temporaryimmigration of highly skilled workers is facilitated more and more. In a similarvein, the Czech Republic has recently implemented a programme aiming atrecruiting highly skilled workers through a point system.

In addition to immigration policy measures, some OECD countries haveintroduced specific fiscal incentives to attract highly skilled migrants. Some ofthese offer virtual income taxfree status for up to 5 years for certaincategories of highly qualified personnel most in need, or large tax deductions(e.g. 25% in Sweden, 30% in the Netherlands, 35% in Austria or 40% inKorea). New legislation along the same lines has been adopted recently inFrance and is under consideration in New Zealand.

FISCAL INCENTIVES

AUSTRALIA In order to encourage businesses requiring a skilledlabour force to locate in Australia, since July 1, 2002,foreign source income of eligible temporary residents isexempt from tax for 4 years.

AUSTRIA An individual who has not had a residence in Austriaduring the past 10 years, who maintains his primary


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residence abroad and has an assignment with anAustrian employer for less than 5 years benefits fromtax deductions for up to 35% of the taxable salaryincome for expenses incurred in maintaining ahousehold in Austria, educational expenses and leave

allowances.

BELGIUM Certain foreign executives, specialists and researchersresiding temporarily in Belgium are eligible for aspecial tax regime that treats them as non-residents.Taxable income is calculated by adjusting the

remuneration according to the number of days spentoutside Belgium. Reimbursements of expenses incurredby an employee as a result of his temporary stay in

Belgium are not subject to personal income

tax.

DENMARK A special expatriate tax regime applies to foreignersemployed by Danish-resident employers. Underqualifying contracts, salary income is taxed at a flatrate of 25% instead of the usual rates of 39% to 59%.

To qualify, expatriates must reside in Denmark andearn more than 50 900 DKK a month in 2001. This tax

regime is valid for up to 36 months.

FINLAND A foreigner working in Finland may qualify for a specialtax at a flat rate of 35% during a period of 24 months ifhe receives any Finnish-source income for dutiesrequiring special expertise and earns a cash

salary of 5,800 or more per month. This law providesthat the expert has not been resident in Finland anytime during the five preceding years.

FRANCE Recent legislation changes which aim at encouragingforeign professionals to work in France include a 5-year tax exemption for bonuses paid to foreignexpatriates where these are directly related to theirassignment in France, and tax deductions for social


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security payments made by the expatriates in theirhome countries. A deduction will also be available forpension and health care payments made outsideFrance. It applies to foreign professionals (includingFrench nationals with a foreign labour contract who

have been residing out of France for a least 10 years)coming to France from 1 January 2004.

JAPAN For expatriates living in Japan, relocation allowancesand once-a-year home-leave allowances are generallytax-free

KOREA Since January 2003, tax-free allowances of up 40 percent of salary to cover cost of living, housing, homeleave and education. Tax-exempt salary for certain

sectors for up to 5 years if the individual is (i)

employed under a tax-exempt technology-inducementcontract or (ii) a foreign technician with experience incertain industries.

NETHERLANDS Expatriates may qualify for a special facility called the30 per cent (previously the 35 per cent). Thisenables an employer to pay, for up to 10 years,employees seconded in the Netherlands a tax-free

allowance of up to 30% of regularly receivedemployment income and a tax-free reimbursement ofschool fees for children attending international schools.

NEWZEALAND A government discussion document, released inNovember 2003, outlines proposals to exempt theforeign sourced income of certain migrants andreturning New Zealanders from New Zealand'sinternational tax regime. It is aimed at ensuring thatNew Zealand's tax system does not discourage the

recruitment of overseas employees. The Governmenthas proposed two possible approaches:

a narrow exemption that would apply for seven yearsand focus on those tax rules that are morecomprehensive than the international norm; and


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a second option that would apply for three years andprovide eligible taxpayers with a broad exemption frompaying New Zealand tax on all foreign-sourced income.

NORWAY Expatriates expected to reside in Norway for 4 years or

less may be allowed a 15 per cent standard deductionfrom their gross income instead of itemised personaldeductions

CANADA Researchers can benefit from 5-year tax relief in theprovince of Qubec on 75% of their personal income ifthey settle in Quebec to work in R&D in a firm.

SWEDEN Since 1st January 2001 foreign key personnel who areexperts and scientists with knowledge and skills thatare scarce in Sweden may benefit from a newexpatriate regime. No taxes are paid for the first 25%of their income. This is valid for a maximum period of10 years.

UNITED KINGDOM Persons who are seconded to the UK and declare theirintention to remain in the UK on a temporary basis, canclaim tax relief on their housing costs and travelingcosts. Non-ordinary residents can also claim tax relieffor days worked outside the UK.

EXPATRIATE POPULATION IN SAUDIARABIA


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In Saudi Arabia, Expatriates are generally hard working professionals, skilledand semi-skilled labor. They fill important jobs throughout the economy thatSaudis cannot fill or are unwilling to fill. Expatriates have been critical toSaudi Arabias economy since it was established as a Kingdom by King AbdulAziz 77 years ago, and have contributed to its growth and development

continuously.

SAUDI TOP DESTINATION FOR EXPATRIATES IN GULF

Gulf Cooperation Council (GCC) countries, a survey have found. According tothe latest data revealed by GulfTalent.com, the number of expats employedin the kingdom rose by 2.4 per cent in the fourth quarter of 2009.

EXPATRIATE STATUS

Of the 8.8 million Expatriates, perhaps 6.5 million are bachelor statusmen, 500,000 married status men, 1 million working women (mostly bachelorstatus and some married wives), and 800,000 non-working wives andchildren.

RELIGION OF EXPATRIATES

Of the 8.8 million in 2009, about 6 million are Muslim, 1.5 million areChristians, and 1.3 million are Hindus and others. Some of the Muslims,ranging from 1 to 2 million, are illegal immigrants who have come into thecountry on Hajj or Umra visas, and then stayed on.

LANGUAGES KNOWN TO EXPATRIATES

Most of the Expatriated labor breaks down into three language groups:English, Arabic, and other. All the Expatriate labor and their few dependentseventually gain minimum elements of both spoken English and Arabic, butthere are over 2 million who cannot read nor write neither English norArabic. About 3.5 million can read and write Arabic, and most of the 1.2million Pakistanis and 200,000 Afghanis can read Arabic letters due to theirIslamic and local written alphabet that uses Arabic letters. Of the remaining 4million, about 2 million can read and write English.

A COMPARATIVE STUDY OF RISE IN EXPATRIATES


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2009 1999

1989

Indians 1.5 million 1 million 300,000Egyptians 1.2 million 1 million 300,000

Pakistanis 1.2 million 1 million 300,000Filipinos 1.2 million 600,000 100,000 Jordanians 500,000 300,000 100,000Syrians 400,000 300,000 50,000Sudanese 300,000 200,000 50,000Lebanese 400,000 200,000 50,000 Yemenis 600,000 100,000 1 millionAfghanis 200,000 100,000 50,000Bangladeshis 200,000 150,00050,000Sri Lankans 200,000 100,000 100,000

Europeans 150,000 100,000 100,000North Americans 50,000 50,00050,000Others 700,000 800,000 400,000TOTAL Expatriates: 8.8 million 6 million 3million

CHALLENGES FOR EXPATRIATES IN SAUDI ARABIA

The major challenges Saudi Arabia face, are inability to mobilize femaleSaudi workforce, and continued reliance on Expatriate workers who earn lowwages to do work that they have decided that they wont do . In brief, theyneed to be more efficient and sophisticated in use of Expatriate labor,especially considering high female unemployment, and serious shortages ofwater and electricity that cannot support high population numbers in theKingdom.

Many expatriates will come to Saudi Arabia to work in the medical andeducation sectors. Thats not to say they are not employed in other sectors;

they are. However the medical and teaching sectors are most prominent. Anexpatriate experience in working in the teaching or medical sectors reallydepends on where they are located, who their employer is and the terms ofthe contract. But they may not have all the full standard benefits as largeremployers.


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EXPATRIATE WOMEN EXPERIENCE

Expat women in Saudi Arabia face a much different experience than theirmale counterparts. For some, wearing an abaya and headscarf, not being

allowed to drive and abiding by the rules that govern interaction among thesexes are just a formality. For others, they turn out to be a source of greatfrustration. Any woman considering a move to Saudi Arabia, should really doher research, talk with other women in the cities where she may be living,and, if married, discuss the positives and negatives at length with yourhusband.

A single expat woman to be allowed to live by herself in an apartment or arental house due to the Kingdoms strict stance on a male mahrem. Also fora womans own safety reasons, it is best for her to live on a compound. Theexception to this rule is if a woman lives alone in an apartment or a rental

house within the diplomatic quarter. There have been several women whowill choose to rent a large apartment or house together in the diplomaticquarter rather than stay at a compound as they feel they have more freedomand independence away from the compound.


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CONCLUSION

FINDINGS


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The opportunities for foreigners to find work in India, and Bangalore inparticular, are growing. There is a need for foreign language trainers andalso executives. Salaries are often competitive with those in their home

countries and the experience of having worked in India is increasinglylooked at favorably on resumes.

By far the biggest draw for recent expatriates is the information technologyindustry, but they are also sprinkled in the hospitality and media industries.

Bangalore's reputation as a technology hub has made it the destination ofchoice for recent expatriates. Presently, estimated 10,000-12,000 foreignerslive or work in Bangalore.

Nationwide, between 20,000 to 30,000 expatriates are believed to be working

in India. That's a fraction of the 100,000 foreigners working in China, andeven more in Hong Kong and Singapore, the Asian destinations of choice forexpatriates.


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BIBLIOGRAPHY

WEBSITES:

www.little to India/Expats In India.com

www.transitionabroad.com
http://www.little/http://www.transitionabroad.com/http://www.little/http://www.transitionabroad.com/


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RESEARCH PAPERS AND ARTICLES

Adams RH., 2003, International Migration, Remittances, and the Brain Drain.A Study of 24 Labor- Exporting Countries, World Bank Policy ResearchWorking Paper 3 069

Barre R., V. Hernandez, JB. Meyer and D. Vinck, 2003, Diasporas scientifiques,ditions IRD, Paris.

Barro RJ. and JW. Lee, 1993, International Comparisons of EducationalAttainment, Journal of Monetary Economics, 32, 363-94(http://www.nuff.ox.ac.uk/Economics/Growth/barlee.htm)

Barro RJ. and JW. Lee, 2000, International data on Educational Attainment :updates and implications, NBER Working Paper n7911(http://www2.cid.harvard.edu/ciddata/)

Carrington W. and E. Detragiache, 1998, How big is the brain drain ?, IMFworking Paper WP/98/102.

Cohen D. and M. Soto, 2001, Growth and Human Capital: good data, goodresults, OECD Development Centre WP n179(http://www.oecd.org/dataoecd/33/13/2669521.xls)
http://www.oecd.org/dataoecd/33/13/2669521.xlshttp://www.oecd.org/dataoecd/33/13/2669521.xls


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