Reverse Migration Whitepaper


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Reverse Migration Whitepaper

  1. 1. Reverse Migration Of Engineering Professionals Into India–Helping Shape India’s Economy
  2. 2. Executive OverviewLabour mobility is a global and increasingly widespread Trend. Skilled Labour is becomingincreasingly mobile as skill shortages and slow population growth sets in the developed world.The added dimension of aging is allowing governments to incentivise migration .The developed world is set to witness an influx of over 100 million people over the next 4decades. Some of the developing countries including India have benefitted from the hugeremittances it receives from its citizens abroad. But it is not just people from the developingcountries who are migrating . Global mobility is a trend seen in all countries at all skill levels.Before the liberalisation and during liberalisation many skilled Indians migrated abroad insearch of greener pastures. The last two decades India has created opportunities for itself inthe world of talent compelling Indians abroad to look back.India’s GDP growth in double digits is based on India’s ability to produce coal to meet itsgrowth demands. Power is definitely a determinant factor and so are the engineers to build theplants, roads and factories India desperately needs. Kelly Engineering Resources takes a peakat the engineers who are returning and why and where they are relocating . This researchfocuses on the talent landscape of returning Indians and evaluates the context of returningEngineers .As India needs to focus on multiple channels for its engineering talent needs of tomorrow,Kelly examines one such source of talent of returning Indians.Hope this e n gineers some thinking on talent ! Kamal Karanth , Managing Director
  3. 3. An estimated 3,00,000 Indian professionals working overseasare expected to return between 2011- 2015. Are there suitable jobs available to them? Is abetter life awaiting them on their return? In a nutshell- is India ready for them, and moreimportantly are they ready for a new India? 1
  4. 4. ContentsIntroduction 3Migration from India- Historical Perspective 5Global Trends 6Reverse Migration to India: from brain drain to brain gain 7 Pre 1980 9 Years 1980-1999 – The Gulf Years 12 Years 2000 – 2008 – From Y2K to GFC 15 Years 2008 onwards – Advantage India 20Looking forward to India 23Conclusion 24 2
  5. 5. An emerging aspect of global manpower flows The world in general is witnessing a change.that is developing in a pronounced manner in Migration levels are increasing as more peopleIndia is Reverse Migration. More and more are looking for better jobs and opportunities.professionals working overseas are choosing to Nations are spending increasing time in draftingreturn to India for varied reasons,not the least of and implementing Migration Policies to attractwhich is the obvious growth of India as an only the best talent to its shores. This holds aeconomic powerhouse and one of the top 3 paradox within itself. Assuming that the globalnations worldwide fuelling global economic community is s tressing on GloCalisationgrowth . (Thinking Globally, acting Locally), it implies that its local populace is sufficient to meet its requirements. This is where the fallacy lies. Most developed countries have realised that its When did you reverse migrate and why? demographicquotient is not sufficient to meet its requirements in all spheres of life, be it business, 2008-2011(Post recession) 2008 - 2011(Post recession) 38% academia, media or social welfare. Hence in essence, developed nations need a global Insecure job market overseas 58% workforceto act local. Personal growth opportunities 34% Native place 28% Overseas 62% Work-Life 2000-2008(Pre recession) 29% India 38% Balance Family related reason 62% To be part of the Indian growth 28% “History bears evidence to the fact tha t story large number of Indians migrated Better working culture 8% overseas in search of better opportunities and living prospects, and conversely due to lesser opportunities in India. But on1980-1999 28% closer observation the reasons may not be purely those mentioned above. It could Family related reason 56% simply be a supply-demand equation.” To be part of the Indian growth 30% story The rapid growth in the labour force in less Better working culture 18% developed countries(such as India) compared to that of the more developed countries is an Pre 1980 5% interesting figure. While the labour force in more developed countries is projected to remain Native place 57% at about 600 million until 2050, the labour force Personal growth opportunities 33% in less developed countries is expected to grow from 2.4 billion in 2005 to 3 billion in 2020 and to 3.6 billion in 2040. 3
  6. 6. This means tha t even after factoring in the rate of migration will continue. Actually, carefullygrowth of developing nations and the s tagnant managed migration is a powerful tool foreconomies of the developed countries, the economic growth in destination countries, andamount of manpower required for the developed for income generation and development incountries from developing countries will poorer origin countries.continue to grow, i.e the traditional flow of Which Indian state do they want to live in? Karnataka 88% Gujarat 72% Standard of living 68% Entrepreneurship opportunities 68% Entrepreneurship opportunities 54% Business culture 54% Native place 42% Opportunities in EPC 28% Opportunities in EPC 38% Native place 24% Maharashtra 66% Kerala 65% Better infrastructure 58% Native place 68% Opportunities in EPC 64% Opportunities in EPC 44% Industrial development 38% Delhi 55% Andhra Pradesh 58% Job opportunities 58% Opportunities in Engineering 58% Native place 17% Native place 17% Better Education 9% Punjab 48% Native place 17% Better opportunities 9% 4
  7. 7. Migration from India - Historical PerspectiveThe ter m “Brain Drain” is a modern phrase bank of 1980s – 1990s, and subsequently to brainconnotingan a ge old phenomenon The migration . gain in the 21st century. Similarly, the labourof skilled labour from less developed nations migrants to the Gulf have been viewed as the main(regions) to more developed nations (regions) has source of remittances, swelling India’s foreignbeen taking pla ce for centuries. It is wrong to exchangereserves.presume that brain drain adversely affects theparent country or incrementally benefits the To look at it broadly, the migration trends of thedestination country. In a more politically correct 20th century from India can be broken into 3tone, the term “Globalisationof hu man resource” broadcategories:meansand implies the same phenomenon . Figure 1: Regional Distribution of Indian diaspora Latin America & Carribean Malaysia 6% 13% Canada 6% Singapore 9% USA 14% Asia Pacific 4% UK 9% Gulf 21% Other Europe Mauritius & East Africa 4% Reunion South Africa 1% 6% 7%An estimated 20–25 million stock of Indian Uptil 1950s – Wealthy youth, moving mostly tomigrants is recordedworld–wide. This is a function the UK and US for further studies in Medicine,of flows of professionals from India over last two Lawor Applied Sciencescenturies. Beginning in 1950s, and picking up as 1960s uptil 1980s- Sproutin numbersmoving forbrain drain in 1960s, skilled migration to higher education in varied fields but still mostlydeveloped countries became more prominentwith linked with sciences. Saw a new phenomenon -the recent 21st–century exodus of the IT workers. movementto the Gulf regions for OilBeginning with the oil–boom of the 1970s, largenumbers of semi–skilled Indian labour have 1980s uptil 2000- Surge in undergraduatecourses,migrated to Gulf countries in West Asia. more cross border job transfers and directProfessionalsleaving India took pla ce in phases – recruitment for migrants moving to the west.fromthe brain drainof 1960’s – 1970’s; to brain Significant increase towards the Middle East for the Oil & Gas sectors. 5
  8. 8. Global TrendsThe total population of international migrants in illustrates the fact that India is the world’s highest2010 is about 214 million. India ranks at no. 9 as remittance receiver with close to USD 50 billionthe country with the maximum number of in inward remittances.foreign born nationals in its population.Interestingly, the destination of choice for Indian This statistic is interesting in furthermigrants – the USA ranks no. 1 with close to 45 understanding two aspects about the majority ofmillion foreign born nationals Adding further to Indian workers. One is, it is clear that Indiansour hypothesis that migration also in fact assists migrate in large nu mbers in search of betterin development of the source country, Figure 3 workingconditions. And secondly, Indians have Figure 2: Countries with largest foreign-born population in 2010 very strong family ties and (in millions) usually save to send monies USA 43 home to family and Russian… 12 relatives. But lately, the Germany 11 trend in migration and Saudi Arabia 8 remittances is slowing down Canada 8 with respect to India. The France 7 reasons behind this and its United… 6 implications could change Spain 6 the working demographics India 5 of the world drastically. Ukraine 5 Source : UN DESA,2010 6
  9. 9. Reverse Migration to India : from brain drain to brain gain The west is seeing a slowdown in its economic the world’s 3 rd largest by the middle of this system. The fact that the west no longer has the century . Such frenetic growth obviously needs an largest markets and the fact that it’s working incremental shift in the labour force available in population is increasing but at a decreasing rate is the country. India has been blessed with a affecting the economics of the trade. India is demographic dividend that other countries developing at a rapid rate, with its GDP set to be would be envious of. Mrs. Dilnawaz Mahanti –Ex- Consultant, International Labour OrganisationWhat types of ou tward-migratory trends have across skill sets, geographies and sectors. A lot ofbeen historically associated with India? people from sectors such as engineering, IT,Indians primarily have moved abroad in three banking are returning to India, as also the usualgeographic clusters- USA and Canada; UK; and numbers from Oil & Gas.Middle East. These trends have changed What initiatives should government take in ordersomewhat over the last decade with new to continue this momentum?geographies such as Australia and NZ; Western Play a regulatory role in the return andEurope (Germany, Belgiu m, France) and parts reintegration process, with regard to employmentof Africa also attracting in-flow of Indian opportunities, working and living conditions,workers. remuneration at par with the previous country,How has the trend of reverse migration impacted etc.the global migration patterns?Reverse migration was always a phenomenon, What barriers do you see in the growth ofalbeit a very miniscule number to pay much reverse migration?attention to. Most professionals from South Unfriendly labour policies and practices, lack ofIndia in the Oil & Gas sector in the Middle East social protection, difference in ‘quality of life’ etc.went with the sole objective of earning quickly Though this “difference” in quality-of-life isbut always with the intention of returning to reducing gradually at least in Tier- I Indian citiesIndia. This was quite unique to the Middle East What according to you is the future of reverseitself. Because usually other professionals going migration in India?to USA & Canada, as well as the UK went mostly It’s hard to say but I presume that due to thefor a better life and in the hope of settling there global economic contraction as well as globalpermanently. These professionals were organisations looking at India from a key marketemployed primarily in the EPC industry. point of view, we will not be wrong to say thatBut now, reverse migration has ceased to be just more and more Indians based overseas woulda phenomenon relevant to a particular workerprofile or geography. It is an increasing trend want to return to India. 7
  10. 10. It is validated that India does and will continue to professionals actually prefer to move back tohave the largest working population globally. But India because of the changing global workspacewhat will be interesting for us to examine is how landscape.many of these highly skilled and sought after Figure 3 : Top 10 remittance receivers in 2010 (In USD billion) India 55.0 China 51.0 Mexico 22.6 Philippin… 21.3 France 15.9 Germany 11.6 Banglad… 11.1 Belgium 10.4 Spain 10.2 Nigeria 10.0 Source: World Bank 8
  11. 11. Pre 1980 Our Research of respondents who moved “India was still recovering from the after- overseas but decided to come back and work in effects of the Emergency years. The India throws up some interesting insights. Of the workforce morale was low, the future 28 percent of respondents who moved overseas looked uncertain and a lot of my peers before 1980, 47 percent went due for higher were moving to greener pastures abroad”. education. 68 percent of these nu mbers moved to the US, and a majority of these were in “The US in those days was galloping Engineering disciplines. Bu t what is interesting to ahead in a wide range of industries. The note is that only 5 percent of these respondents Petroleum industry was peaking in the US moved back to India. back then, with almost 8.7 million barrels of oil produced per day as compared to “Canada was developing fast in the early only about 5.6 million barrels a day ‘80s. And a lot of Indians were migrating today” there increasing the diaspora and thereby making the work-life balance easy to get accustomed to.” ---- Sujit Biswas, moved to the US in 1976 after completing his BTech degree from IIT ---- Gundeep Araich m o ved t o Canad a i n 1978 t o do hi s mast ers i n mech ani cal engi neeri n g. moved having moved overseas before 1980, as they felt itb ack t o In di a i n 2009 t o set up a smal l farmi n g bu si ness i n h is n ati ve st at e of Pu n j ab . H i s m ai n d ri vi n g mo ti ve was to ret u rn t o h is n ati ve p l ace was a good time to start a business of their own. Almost an equal split in these numbers are Infact, 57 per cent of the respondents who came located in the states of Punjab and Andhra back to India after moving overseas before 1980, Pradesh. Another interesting fact is that most of had “Returning to Native pla ce” as their key the respondents who moved ou t of India before reason for coming back to India . Another 33 1980 were employed mostly in the engineering percent preferred coming back to India having domain. 9
  12. 12. As the domestic Oil industr y in the US was a key Visa rules were supportive of this movement assource of recruitment back in the pre-1980 era, it well. Thus a majority of the respondents whohas since continued to decline and this trend migrated during this period cited a co mbinationshares a direct correlation with the surge of the of better remuneration and growth opportunitiessame industry in the Middle East. But we will for this move.come to this a little later.Looking at some of the other industry drivers of Factor in the lu crative stipends and scholarshipsthe pre-1980 years in the US were heavy extended by US universities and it is easy toindustries such as Cement and Engineering. The understand why so many Indians moved duringAuto giants at Detroit were yet to bear the brunt that time. To look at the o ther geographicof the Japanese attack, and in general the location for mass movement of Indians, one haseconomic outlook looked very bright. to go no further than a few nautical miles west of Figure 4 : Age decomposition of reverse migrants(Pre 1980) “They were willing to pay us what the Gen Y (18-29), companies in India 34% wouldn’t even think of paying us. It really wasn’t a very tough decision to Gen X (30-49), make” 65% ---- Anirudh Singhal spent almost 30 years in the US Baby Boomers working for a top Automobile company (50-65), 1% before moving back to India in 2001What is equally important to note is that a lot of Mumbai – the Middle East . Though Oil wasIndians before 1980 moved to the US for discovered in the Gulf in the 1930 s, theacademic reasons as well. Almost 47% of the number of Indians in the region wasrespondents we surveyed who had moved before considerably small and grew gradually from1980 had done so for this purpose. And almost about 1,400 in 1948 to 40,000 in the early77% of these respondents had mo ved for post- 1970 s. This was to see a sudden burst ofgraduate studies mostly in Engineering. The increase in volumes over the next few years .balance was split between Medicine, Law and There is also a geo-political angle to this entireArts in that order. US universities during thisperiod were very receptive of the quality of story . During the years 1977 -1981 , the USIndian under-graduate education and were also made a conscious effort to stop further largeacutely aware of the benefits that would accrue scale exploration of Oil & Gas in its ownfrom these students for the US academia and territory and started depending majorly on theindustry. Gulf . Having increasingly thwarted the ability of the U.S. to access its own vast reserves of “At a time when we didn’t know what oil, successive administrations burdened would happen in India over the next 6 Americans with billions more in costs at the gas pump . This led to a huge increase in months, we were very clear of how the demand of Gulf Oil thereby directly impacting economy and the job market would the migration trends to this region . By 1979 , shape up in the US for atleast 5-10 the stock of Indian migrant population to the years” Gulf countries had swelled to 257 ,655 , but these were still early days as the numbers would keep increasing drastically. ---- Umesh Aggarwal moved to the US in 1978 to pursue his PhD in Petroleum Engineering 10
  13. 13. Key Findings of the Survey Key reason to move overseas >10 years2008-2011(Post Recession) 8% 35% <3 years 21% How many years were you based Internal job transfer 33% overseas? Higher studies 60% 3-5 years2000-2008(Pre Recession) 26% 16% 5-10 years 28% Better opportunities 57% Higher studies 30% Job transfer 12% >10 years 9% <3 years1980-1999 38% 5-10 years 21% 38% Higher studies 61% How many years did you spend in Job transfer 10% your last overseas Parents shifted 3% job? 3-5 years 28% 32% Pre 1980 Higher studies 47% Better opportunities 33% Overseas 52% India 48% High remuneration 48% Work-life balance 9%Job Satisfaction Growth opportunities 10% Growth opportunities 55% Work-life balance 20% Better working culture 20% Better working culture 12% High remuneration 16% 11
  14. 14. Years 1980-1999 – The Gulf YearsAs the last decade of the 20th century ushered in migrants in the Gulf were comprised of semi-a new government in India, the world was skilled and un-skilled workers. By 1991, 1.4moving rapidly - adopting new technologies and million Indians worked and lived in the GCCideas. This period saw an increase in the number Countries, a majority of these from the Southernof Indians moving to the Gulf as compared to states. An overwhelming 90% of the Indiansany other region. Most migrants hailed from the working in the GCC were either employed in OilSouthern states of Kerala, Tamil Nadu, & Gas or the EPC industry. The remaining wereKarnataka and Andhra Pradesh. mostly in Banking and Financial services. The GCC countries had drastically reduced work visa. “My engineering degree helped me requirements in the early 1980s directly land a managerial job in the UAE but impacting this large increase. most of my learning was on-the job as I did not have prior experience in Oil & All this though was soon to change after the Gas”. economic reforms in India in 1991-1992. With the opening up of the Indian economy, FIIs and MNCs started to trickle into India. Though the M. Ananth, Gulf still attracted a lot of workers to its shores, an engineer from Mysore who moved to the UAE in 1986 to work for an Oil company there was a slight increase in Indians in the US and Europe coming back to India .38% of our respondents stated this period as the Indian Population in the Gulftime they moved abroad. Though a vast majority(61%) moved for further studies, at the same Country 1983 1987 1991time almost 58% of the remaining working S Arabia 2,70,000 3,80,000 6,00,000migrant population moved to the Gulf regions.Indian migrant workers in the GCC countries UAE 2,50,000 2,25,000 4,00,000cater to all three categories of labour. The highly Oman 1,00,000 1,84,000 2,20,000skilled and technically trained professionals Kuwait 1,15,000 1,00,000 88,000remain in great demand in the governmentdepartments and the public sector enterprises. Qatar 40,000 50,000 75,000 Bahrain 30,000 77,000 1,00,000They are also allowed to bring in their families Total 8,05,000 10,16,000 14,83,000and children. However, about 70% of the Indian Source: Rahman (1999) 12
  15. 15. The above statement b y Mr. Anirban Basu numbers moving to the Middle East, there wasclearly indicates that there is a latent desire in all a significant number of Indians returningmigrants to come back to their native land only if during this period . Though it is tough tothe macro-conditions are similar. The factors that ascertain the split between the nu mbers movingusually influence the outward movement of back to India between 1980-1999, it is a safeworkforce are: assumption that the majority will be tilted to the period after the liberalisation in 1991-1992.  Higher remuneration 30 percent of respondents who moved back in  Better growth opportunities thisperiod cited “To be part of the Indian  Improved standard of living Better work- growth story” as the key reason for making  Better working culture life balance the decision .  Image/perception related reasons62 percent of the 38 percent of working Since 1992 the rate of job creation in Indiaprofessionals who moved overseas during this has increased manifold, creating new jobs .time cited better work -life balance, and higher With the entry of priva tised and opportunitiesremuneration as the key factors affecting their the working culture has also global corporations,decision making process. On a more sociological of the respondents who moved evolved. 18level, percent period also validated better job back in this the reasons influencing their culture asthese words are important as they imply that one of decision to move back .most people moving abroad are mainly doingso because of the void in their native land .This hypothesis is an interesting one, and theevents of the next decade go a long way insupporting it. Even with the burgeoning Figure 5: Age Disposition of Reverse Migrants (1980-1999) Baby Boomers (50-65) Gen Y (18-29) 13% 39% Gen X (30-49) 48% 13
  16. 16. Mr. Munish Kohli, - working in the Oil & Gas sector for more than 12 years . ‘ Growth opportunities in India - way better than the Middle EastWhen did you leave India and for what reasons? within the organisation and the industry itselfI moved to the UAE in 2004 to work in the Oil were stagnating. My peers were all facing the& Gas industry. The primary reason for me same issues. The life was still very comfortablemoving was due to the better remuneration but the job was not giving me much comfortthere. from a long term point of view. Also the news of India’s growth story was the talk of town, so toWas that the only decisive factor or were there say. We started hearing how jobs in India nowother reasons as well? paid better, infrastructure in certain states wasIt was the primary reason. Though I had heard improving rapidly and the growth opportunitiesthat the standard of living was way better than in these jobs was wa y better than the MiddleIndia. East. At the end of the day, not only does a professional want to make money but also have aspirations in rising to a Leadership role. ThisWhat were the changes you witnessed once you was absolutely not possible in the UAE.moved to the UAE as compared to here inIndia? Both in terms of your job as well as life in Where are you based currently, what were yourgeneral? reasons to choosing this location and how do youSee when I moved there initially, what struck me see growth opportunities in your current job andforemost is that the standard of living is much India as a whole?better. The infra-structure of the cities is better, I am currently in Gujarat working for a largein terms of basic a menities, in terms of options of Indian Oil & Gas company. I feel Oil and Gas isentertainment and leisure – all in all it was way the Sector which ultima tely drives the growth of abetter than I was used to living in Mumbai before country. All Industrial growth is a direct variantI left. of Oil and Gas Availability a t reasonable prices.From a work point of view, there were no taxes Hence this sector will undoubtedly grow.that needed to be paid. I was living in a better India will continue to grow, as during mystate than previously, enjoying life after work, and interactions with my former colleagues in UAE, Istill managed to save sufficient amounts of my constantly hear how the salary levels have beensalary every month. the same for the last year, but here in India, most of my peers have all enjoyed 15-20% salary hikes.When and why did you start thinking aboutmoving back to India?After living in the UAE for over 3 years, I startedrealising that growth opportunities 14
  17. 17. Years 2000 - 2008 - From Y2K to GFCThe new century started with an incredible employees were sent overseas to companyincrease in outward migration from India. Mostly Headquarters, R&D installations, setting upmigration still centred around the Americas, new markets etc . The Western economy rightGCC and Western Europe, but this period also through the early 2000 s grew rapidly,saw the birth of a new movement of professionals especially the US.moving to Australia. The Australian economywhich had a real GDP of USD 600 billion in By 2006 , 1.5 million people of Indian origin2000, had grown to USD 1.2 trillion by 2010. were based in the US, forming the 4 th largestThe historic drivers of the Australian economy community after Mexico, Philippines andnamely the Service industry and Agriculture saw China . Almost 80 percent of the total Indiana slight reduction in growth as compared to the migrant population to the developed countriesIndustrial sector. Cement, Gas, Mining and Steelindustries attracted manpower from across the was in the US. The well–known non-globe. At the other end of the world, Indian immigrant H1–B visa category, with an annualmigration to the US saw a new trend – more cap of 65,000 visas per year worldwide, the USinternal job transfers. As the Indian economy Senate had to clear a bill for a limitedopened up and attracted heavy inward expansion of these visas to 337 ,500 for themovement of MNCs, intra-organisationalboundaries started reducing. Deserving 15
  18. 18. three-year period from 1999 to 2001. This was that burst the IT bubble than by its actual labourbecause the US had faced a decline in key market needs, the U.S. government has beenundergraduate science degrees, an acu te shortage under continuous pressure of different lobby andof staff in high technology industries like software business to increase the H1–B visa limit oncedevelopment, and exhaustion of the worldwide again. Of the 4 states in the US with the largestannual quota of H–1B visas too quickly in 1998, Indian population (California, New York, Newwith 42 per cent (or two out of every five visas) Jersey and Texas) – California and Texas hasbeing issued to Indian IT software professionals. thriving Construction and Engineering industries.After 2001, when the number of H–1B visas On the other hand , migration of Indians toissued to Indians went down because the European nations was more or less stagnant. AnAmerican immigration scenario came to be estimated 24% of Indians working in the Easterndetermined more by the post–9/11 security European and parts of Western Europe in theconcern in the U.S and the subsequent recession EPC industry are low wage workers. The UK though continued Figure 6 : Age Disposition of Reverse Migrants to be the European hub of (2000-2008) migration in the Oil & Gas sectors with British Oil companies being a Baby Boomers significant recruiter in this (50-65) Gen Y (18-29) 18% 38% period. Gen X (30-49) 44% 16
  19. 19. Mr. Anirudh Gupta - working in the Construction sector for more than 20 years . ‘ Quality of life is now excellent in INDIAWhen did you leave India and for what reasons? Please elaborate.I left for the US in 1997 to work in the I and more than 100 of my organisationsConstruction industry initially for a Construction colleagues were given the pink slip in a majorequipment manufacturing company and then cost cutting move b y the management evensubsequently for a Construction firm itself. The though I was a consistent performer. I spentprimary reason for me to leave was for monetary another 6 months in the US looking for otherbenefits of working abroad as compared to India jobs but the situation was very bleak as theback then. economy crashed and there were no jobs available.Was that the only decisive factor or were there Where are you based currently, what were yourother reasons as well? reasons to choosing this location and how do youOfcourse the standard of living was much better see growth opportunities in your current job andin the US, but if any Indian company could have India as a whole?paid me the amount I was getting paid in the US, Just before my work permit for the US expired, II would have surely chosen to stay back here. got an offer from a US based Construction equipment company which was looking atWhat were the changes you witnessed once you starting operations in India. The company wasmoved to the US as compared to here in India? looking to aggressively pursue the Indian market,Both in terms of your job as well as life in as the downside of the US construction industrygeneral? was offset by the growth of the IndianLife undoubtedly was better. But at the same construction industr y. Though I had totime, it is wrong to view that sta tement in compromise marginally in ter ms ofisolation. Many things that we take for granted in remuneration, I think in hindsight it was one ofIndia such as domestic help, chauffeurs, menial the wisest decisions I have made.workers for small household needs etc. isabsolutely missing in the US. Life is more The company is doing very well in India now,comfortable in India in that sense. and I am based in Bangalore and extremely happy with both my job and my life. I originallyBut how satisfied were you with your job? hail from Punjab, but had no trouble in adjustingThe work was exciting. I t was a pure meritocracy to life in Bangalore as it is extremelyand growth opportunities were excellent. I cosmopolitan and quality of life is excellent. Myshifted from my industr y to the clients side two kids go to an international school which iswithout any loss of job responsibilities or arguably better than the school they went to inremuneration. But the construction industry saw the US. All in all, the future looks bright.a great slowdown in 2008 after the financial crisis.Many jobs were affected including mine. 17
  20. 20. The financial crisis of 2008 and the growing economy of Indiacombined to change the landscape of migratory trends inIndia. For example the Cement industr y which was a majorsource of employment for Indians in the developedeconomies, took a heavy beating. The cement industr y in theUnited Sta tes of America had absorbed a sizable section ofthe available labour force. However, available sta tisticsindicate that employment opportunities in this particularsector have declined over years. In 2009, employment in UScement industry reduced at a rate of 33% in comparison toearly 1980s. Closing down of relatively s maller kilns (due tofinancial constraints) and use of automated machines led to adrop in available employment opportunities. Similarly in theSugar industry in the US, employment in sugar containingproducts (SCPs) industries decreased by more than 30,000jobs between 1997 and 2010 according to the Bureau ofLabour Statistics.The GFC had a ripple effect on all industries acrossthe globe. Says M Ananth, who was employed in theGCC, “Job security drastically reduced in 2008. We werenot sure till when we could continue with our jobs as manyof our peers and collea gues were asked to quit”.This pheno--menon though was mostly an aberration. 28 percent ofrespondents who came back to India between 2000- 2008cited “to be part of the Indian growth s tory” as the reason formoving back. India was growing rapidly in this period, closelyshadowing the other great Asian powerhouse- China . Therewas holistic growth and job creation in all industries. Globalorganisations in Cement, Au tomobiles, Oil & Gas startedlooking at India as a key strategic link in both their supplychain as well as their point of sales . 18
  21. 21. Easing of regulatory and export guidelines also beneficiary of the surge in infrastructuresaw a boost in the Indian sugar industry in this investment over the next few years.period. Although India is the second largestproducer of sugar (16.3 million ton production Investment in construction accounts for nearlyin 2008-09), it ranks 15th in export rankings 11 per cent of India’s Gross Domestic Product(0.23 million ton exports in 2008-09). The (GDP). With the significant investmentgovernment has further agreed to ease export opportunities emerging in this industry, a largeguidelines, and this sector for certain will number of international real estate playerscontinue to see a lot of a ctivity. This period saw entered the country. Currently, foreign directincredible growth in another Indian sector- investment (FDI) inflows into the sector areConstruction. Construction accounts for nearly estimated to be between € 3 billion and € 3.5065 per cent of the total investment in billion.infrastructure and is expected to be the biggest 19
  22. 22. Years 2008 onwards – Advantage IndiaOne of the fascinating things in India currently is as well. Like we earlier dis cussed about MNCsthe relationship between real GDP and opening offices in India supported by theirunemployment rates. This implies that mostly as Indian workforce across their global offices,the economy grew, unemployment rates tended there are an equal number of companies hiringto reduce and also reduce at the same rate. The foreign returned blue collar workers in relatedyear 2009 (fig. 7) saw a stark increase in industry sectors.unemployment rates, but this has sincemoderated in 2010. India will continue to create This is the true a cknowledgement of the Reversemore jobs than any other emerging nation, and Migration phenomenon . When jobs are createdin this scenario, reverse migration factored in, is at rate good enou gh to accommodate botha favorable situation. With foreign re-turned domestic as well as India returned professionals,professionals, both blue-collared and white- in both white collar and blue collar jobs, it is easycollared, there is a concentrated push in both to understand the rate at which professionals arethese labor sub-set driven industries within India returning to their native land . 20
  23. 23. Another interestingphenomenon in employment Figure 7 : Real GDP vs. Unemploymentoptions for reverse migrantsis the emer gence of KPO(Knowledge ProcessOutsourcing) companies. 10.8Many large global Consulting 10.7 10.4firms have also opened theirResearch Centres in India 9.2 9 8.9and most of them have 8.4 7.8dedicated industry practices 7.2 7.4 7.4such as Oil & Gas, Alternate 6.8Energy, and Constructionetc. Having the availability of 2005 2006 2007 Unemployment Rate 2008 2009 Real GDP 2010professionals having spenttime in these domainsaround the world is a beneficial situation for the West. The future tends to validate the factKPOs and one of the reasons for their increasing that India will continue to see an increase innumbers. Indian KPOs account for almost 70% reverse migration as the countr y is slated toof global KPO volu mes, and the global KPO become one of top 3 economies of the world bymarket is expected to grow to USD 17 billion by 2030. Unnamed sources at the Ministry of2013-14 With the rapid strides in socio- Indian Overseas Affairs indicated tha t the growtheconomic development in India especially in the rate of Indians returning to India could be asurban cities, the difference in the perceived high as 10% CAGR from the current 70,000quality of life factor vis-a-vis India as compared to Indian nationals returning every year. 21
  24. 24. Ms. Upshi Dhar Ex-Project Manager, Kline & Co. What is the kind of Research/Consulting work Are there Consultants/Researchers in these done by KPOs in India? organizations who have had direct experience in Possibly all kinds of research work : Feasibility working for Oil & Gas companies globally? studies, market intelligence, customer feedback, Yes, experience in Oil & Gas companies is competitive in-telligence, manufacturing valued by the research companies. economics, financial analysis, product studies, What according to you is the future of these regional studies. Consulting work is carried out services in India? And do you see more for all oil majors by various KPOs in India. professionals directly employed in these sectors KPOs also carry out primary and secondary coming back to India to join companies working research work for the major consulting in Research and Consulting? companies. The future of the KPO industry looks bright in What are the usual academic/professional India. The availability of highly skilled manpower background of consultants in these at low costs makes it an ideal destination for organisations? KPOs. There is definitely a trend of Engineers, MBAs, Masters in Oil & Gas, Masters professionals directly employed in the Oil & Gas in Science or Technology industry returning to India to join research and consulting companies. With the slowdownThough 58 percent of respondents who moved to India within thisperiod indicated tha t the job markets insecurities overseas led them tomake this choice, 34 percent also felt that future opportunities in Indiawas a key factor in influencing their decisions. Job satisfaction a mongthese respondents was also very high and 60 percent of them felt thatthere was no significant difference between working overseas ascompared to India. Figure 8 : Age Disposition of Reverse Migrants (2008 onwards) Gen Y (18-29) 42% Baby Boomers (50-65) 16% Gen X (30-49) 42% 22
  25. 25. Looking forward to India As India continues to attract increasing number 88 percent of respondents felt that Karnataka of reverse migrants, the job market and the would be their state of choice, followed by economy as a whole will see an increase in Gujarat. An interesting trend that emerged from quality of ancillary services and job culture in at the respondents was also the fact that least urban and semi-urban areas. 62 percent of “entrepreneurship opportunities” was an our respondents said that job-satisfaction levels in important factor in choosing their preferred state India were lower than overseas, but out of the 38 with entrepreneurship opportunities in Gujarat percent who indicated that job-satisfaction levels ranking as the most important factor for people in India were higher, a whopping 72 percent wanting to move to the s tate. The standard of were those who returned to India in the last 10 living in Karnataka was the key reason for years. This proves the fact that the work respondents to choose the sta te above others, environment in India is in an evolutionary stage while 58 percent of respondents who preferred and organisations and governments are taking Delhi indicated that they key reason for their steps in improving work-life balance. When choice was due to better job opportunities in the asked about their preferred state in the country, state. India has a great history and rich cultural value 4.9 Development in technology and other software services 4.8 Top 3 changes India has a strong economy and has in India since ability to compete with other develop 3.7 they left.What they countrieslike about India has a large entrainment industry 3.7 India? India has a world class higher education system(IIT, IIM) that is reconised 3.7 88% Better Public globally. Despite diversity of religions, national infrastructure unity is very strong. 3.7 India has third largest pool of qualified scientist and engineers Indias growth story implies it still has 3.2 72% Better ancillary immense opportunity than western 3.1 countries. services (education, health Female education and their sustainable care etc) 4 role in development is still not fully 3.2 recognized Lack of basic amenities e.g. Infrastructure Key areas of improvement 68% transport Greater in India? In India tribal, caste , religious opportunities in all 3.1 discrimination still prevails spheres of life 23
  26. 26. ConclusionIt is important to understand that the most critical driver of reversemigration trends will be job satisfaction levels . Though 48 percent ofrespondents who favoured the job satisfaction overseas indicated that thekey reason for them was high remuneration, they also indicated thatgrowth opportunities abroad are rather bleak with only 10 percentrespondents feeling that opportunities abroad are favourable. Thoughmost respondents felt tha t work-life balance is still better overseas ascompared to India, 20 percent of respondents who favoured jobsatisfaction levels in India felt that the working culture in their currentjobs is better than overseas. This coupled with the fact tha t 55 percent ofthose preferring India also felt that growth opportunities in India arebetter, offsets the difference of 4 percent between those favouring Indiaas compared to overseas in terms of Job satisfaction. It is safe to assumethat within the next 2-3 years, job satisfaction levels in India will surpassthat of their previous overseas jobs for majority of reverse migrants.88 percent of respondents feel that public infrastructure has improveddrastically since they left India. One of the reasons for Indians to preferliving abroad used to be better ancillary services such as healthcare,schooling for their children, entertainment etc. However, 72 percent ofrespondents indicated that the positive change in these services wasamong the top 3 changes in India since they lef t. The third major changeindicated by the respondents was better opportunities in all spheres oflife.It is safe to s tate then that the future looks bright for India, not only froman economic perspective but also from a sociological viewpoint. As moreIndians working overseas look at coming back to take up challenging andcritical new jobs, their experience abroad will undoubtedly enrich theircolleagues, peers and the local work environment. With the governmentspending large amounts of capital on infrastructure and living amenities,an increasing nu mber of happy, content and driven Indians are expectedto move through the front doors of offices across the country. 24
  27. 27. ‘ ‘The major Automobile After my masters degree, I was working for a largecompany I was working corporation in Mumbai. They wanted me and a team tofor in Detroit, wanted me explore opportunities in Europe and Africa. India all ofto move to India to study a sudden was not only a lucrative market for goods andthe potential of the services for global companies, but also an excellentmarket here. I jumped at market for manpower resources.the opportunity. Siddharth Rajput Employed with British Gas--Anirban BasuWorked for a large Automobile co. in theUS for 10 years‘The reasons for highly skilledprofessionals migratingabroad is not because thegrass is greener on the otherside, but mainly because thegrass is absolutely dead anddull on this side. ‘ It was hard for me to get a decent job in India which paid well. Because there were no jobs here that paid well, the option of considering other ‘ In the decade of 2010- 20, India will add 120 million people in the working looking age-group employment which will make India’s global for factors such as family, working population at --Arunav Purkayashta, native place etc. just did 28%. The nearest Senior Sociologist. not arise. competitor China, on the other hand, will Abbas Raza Khan add only 19 million‘ moved from Kochi to Dubai in 1990 people in the sameI moved back to India in 2009 and immediately found a period contributing 5%job with a company in Mumbai who wanting me to work of the global workingon their Oil exploration facility. The job paid me as much I got paid back there Subir Gokarn’s --Anzil Rasheed Ex-Deputy Governor who hails from Kerala and spent a decade in the Oil industry in Oman of Reserve Bank of India(2010)
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