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Reverse Migration
  Of Engineering
 Professionals Into
       India

–Helping Shape India’s
       Economy
Executive Overview

Labour mobility is a global and increasingly widespread Trend. Skilled Labour is becoming
increasingly 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 4
decades. Some of the developing countries including India have benefitted from the huge
remittances it receives from its citizens abroad. But it is not just people from the developing
countries 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 in
search of greener pastures. The last two decades India has created opportunities for itself in
the 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 its
growth demands. Power is definitely a determinant factor and so are the engineers to build the
plants, roads and factories India desperately needs. Kelly Engineering Resources takes a peak
at the engineers who are returning and why and where they are relocating . This research
focuses on the talent landscape of returning Indians and evaluates the context of returning
Engineers .

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
An estimated 3,00,000 Indian
 professionals working overseas
are expected to return between
 2011- 2015. Are there suitable
   jobs available to them? Is a
better life awaiting them on their
  return? In a nutshell- is India
    ready for them, and more
importantly are they ready for a
             new India?




                                     1
Contents
Introduction                                                 3

Migration from India- Historical Perspective                 5

Global Trends                                                6



Reverse 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                  20



Looking forward to India                                     23

Conclusion                                                   24




                                                                  2
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 people
India 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 drafting
return to India for varied reasons,not the least of   and implementing Migration Policies to attract
which is the obvious growth of India as an            only the best talent to its shores. This holds a
economic powerhouse and one of the top 3              paradox within itself. Assuming that the global
nations worldwide fuelling global economic            community is s tressing on GloCalisation
growth .                                              (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 on
1980-1999                                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
This means tha t even after factoring in the rate of    migration will continue. Actually, carefully
growth of developing nations and the s tagnant          managed migration is a powerful tool for
economies of the developed countries, the               economic growth in destination countries, and
amount of manpower required for the developed           for income generation and development in
countries 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
Migration from India - Historical Perspective

The ter m “Brain Drain” is a modern phrase                        bank of 1980s – 1990s, and subsequently to brain
connotingan a ge old phenomenon The migration
                                  .                               gain in the 21st century. Similarly, the labour
of 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 foreign
been taking pla ce for centuries. It is wrong to                  exchangereserves.
presume that brain drain adversely affects the
parent country or incrementally benefits the                      To look at it broadly, the migration trends of the
destination country. In a more politically correct                20th century from India can be broken into 3
tone, 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 to
migrants 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 Sciences
centuries. Beginning in 1950s, and picking up as
                                                                  1960s uptil 1980s- Sproutin numbersmoving for
brain drain in 1960s, skilled migration to
                                                                  higher education in varied fields but still mostly
developed 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 Oil
Beginning with the oil–boom of the 1970s, large
numbers 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 direct
Professionalsleaving 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
Global Trends

The total population of international migrants in             illustrates the fact that India is the world’s highest
2010 is about 214 million. India ranks at no. 9 as            remittance receiver with close to USD 50 billion
the 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 further
migrants – the USA ranks no. 1 with close to 45               understanding two aspects about the majority of
million foreign born nationals Adding further to              Indian workers. One is, it is clear that Indians
our hypothesis that migration also in fact assists            migrate in large nu mbers in search of better
in 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
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 Organisation



What types of ou tward-migratory trends have             across skill sets, geographies and sectors. A lot of
been 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 usual
geographic clusters- USA and Canada; UK; and             numbers from Oil & Gas.
Middle East. These trends have changed
                                                         What initiatives should government take in order
somewhat over the last decade with new
                                                         to continue this momentum?
geographies such as Australia and NZ; Western
                                                         Play a regulatory role in the return and
Europe (Germany, Belgiu m, France) and parts
                                                         reintegration process, with regard to employment
of 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 of
albeit a very miniscule number to pay much               reverse migration?
attention to. Most professionals from South              Unfriendly labour policies and practices, lack of
India 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 is
but always with the intention of returning to            reducing gradually at least in Tier- I Indian cities
India. This was quite unique to the Middle East
                                                         What according to you is the future of reverse
itself. 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 the
for a better life and in the hope of settling there
                                                         global economic contraction as well as global
permanently.       These     professionals      were
                                                         organisations looking at India from a key market
employed primarily in the EPC industry.
                                                         point of view, we will not be wrong to say that
But now, reverse migration has ceased to be just
                                                         more and more Indians based overseas would
a phenomenon relevant to a particular worker
profile or geography. It is an increasing trend          want to return to India.




                                                                                                      7
It is validated that India does and will continue to               professionals actually prefer to move back to
have the largest working population globally. But                  India because of the changing global workspace
what 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
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 it
b 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
As the domestic Oil industr y in the US was a key                            Visa rules were supportive of this movement as
source of recruitment back in the pre-1980 era, it                           well. Thus a majority of the respondents who
has since continued to decline and this trend                                migrated during this period cited a co mbination
shares a direct correlation with the surge of the                            of better remuneration and growth opportunities
same 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 scholarships
the pre-1980 years in the US were heavy                                      extended by US universities and it is easy to
industries such as Cement and Engineering. The                               understand why so many Indians moved during
Auto giants at Detroit were yet to bear the brunt                            that time. To look at the o ther geographic
of the Japanese attack, and in general the                                   location for mass movement of Indians, one has
economic 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 2001




What is equally important to note is that a lot of                           Mumbai – the Middle East . Though Oil was
Indians before 1980 moved to the US for                                      discovered in the Gulf in the 1930 s, the
academic reasons as well. Almost 47% of the                                  number of Indians in the region was
respondents we surveyed who had moved before                                 considerably small and grew gradually from
1980 had done so for this purpose. And almost                                about 1,400 in 1948 to 40,000 in the early
77% of these respondents had mo ved for post-                                1970 s. This was to see a sudden burst of
graduate 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 entire
Arts in that order. US universities during this
period were very receptive of the quality of                                 story . During the years 1977 -1981 , the US
Indian under-graduate education and were also                                made a conscious effort to stop further large
acutely aware of the benefits that would accrue                              scale exploration of Oil & Gas in its own
from these students for the US academia and                                  territory and started depending majorly on the
industry.                                                                    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
Key Findings of the Survey


         Key reason to move overseas
                                              >10 years
2008-2011(Post Recession)          8%           35%                    <3 years
                                                                         21%        How many years
                                                                                    were you based
   Internal job transfer           33%                                                overseas?
   Higher studies                  60%
                                                                           3-5 years

2000-2008(Pre Recession) 26%
                                                                             16%
                                                          5-10 years
                                                             28%

   Better opportunities           57%
   Higher studies                 30%
   Job transfer                   12%                                               >10 years
                                                                                       9%            <3 years

1980-1999                       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
Years 1980-1999 – The Gulf Years
As 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, 1.4
moving rapidly - adopting new technologies and                   million Indians worked and lived in the GCC
ideas. This period saw an increase in the number                 Countries, a majority of these from the Southern
of Indians moving to the Gulf as compared to                     states. An overwhelming 90% of the Indians
any other region. Most migrants hailed from the                  working in the GCC were either employed in Oil
Southern states of Kerala, Tamil Nadu,                           & Gas or the EPC industry. The remaining were
Karnataka 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 Gulf
time they moved abroad. Though a vast majority
(61%) moved for further studies, at the same                      Country       1983          1987            1991
time almost 58% of the remaining working
                                                                  S Arabia     2,70,000     3,80,000        6,00,000
migrant population moved to the Gulf regions.
Indian migrant workers in the GCC countries                         UAE        2,50,000     2,25,000        4,00,000
cater to all three categories of labour. The highly                Oman        1,00,000     1,84,000        2,20,000
skilled and technically trained professionals                      Kuwait      1,15,000     1,00,000          88,000
remain in great demand in the government
departments and the public sector enterprises.                     Qatar        40,000       50,000           75,000
                                                                  Bahrain       30,000       77,000         1,00,000
They are also allowed to bring in their families                   Total       8,05,000    10,16,000        14,83,000
and children. However, about 70% of the Indian                                                        Source: Rahman (1999)




                                                                                                               12
The above statement b y Mr. Anirban Basu                     numbers moving to the Middle East, there was
clearly indicates that there is a latent desire in all       a significant number of Indians returning
migrants to come back to their native land only if           during this period . Though it is tough to
the macro-conditions are similar. The factors that           ascertain the split between the nu mbers moving
usually influence the outward movement of                    back to India between 1980-1999, it is a safe
workforce 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
       reasons
62 percent of the 38 percent of working                      Since 1992 the rate of job creation in India
professionals 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 opportunities
remuneration 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. 18
level,                                                       percent period also validated better job back in
                                                             this the reasons influencing their culture as
these words are important as they imply that                 one of decision to move back .
most people moving abroad are mainly doing
so because of the void in their native land .
This hypothesis is an interesting one, and the
events of the next decade go a long way in
supporting 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
Mr. Munish Kohli,
           - working in the Oil & Gas sector for more than 12 years .



      ‘   Growth opportunities in India - way better than the
                            Middle East
When did you leave India and for what reasons?          within the organisation and the industry itself
I 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 comfortable
moving was due to the better remuneration               but the job was not giving me much comfort
there.                                                  from a long term point of view. Also the news of
                                                        India’s growth story was the talk of town, so to
Was that the only decisive factor or were there         say. We started hearing how jobs in India now
other reasons as well?                                  paid better, infrastructure in certain states was
It was the primary reason. Though I had heard           improving rapidly and the growth opportunities
that the standard of living was way better than         in these jobs was wa y better than the Middle
India.                                                  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. This
What were the changes you witnessed once you
                                                        was absolutely not possible in the UAE.
moved to the UAE as compared to here in
India? Both in terms of your job as well as life in     Where are you based currently, what were your
general?                                                reasons to choosing this location and how do you
See when I moved there initially, what struck me        see growth opportunities in your current job and
foremost 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 large
in terms of basic a menities, in terms of options of    Indian Oil & Gas company. I feel Oil and Gas is
entertainment and leisure – all in all it was way       the Sector which ultima tely drives the growth of a
better than I was used to living in Mumbai before       country. All Industrial growth is a direct variant
I 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 my
state than previously, enjoying life after work, and    interactions with my former colleagues in UAE, I
still managed to save sufficient amounts of my          constantly hear how the salary levels have been
salary 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 about
moving back to India?
After living in the UAE for over 3 years, I started
realising that growth opportunities




                                                                                                              14
Years 2000 - 2008 - From Y2K to GFC

The new century started with an incredible         employees were sent overseas to company
increase in outward migration from India. Mostly   Headquarters, R&D installations, setting up
migration still centred around the Americas,       new markets etc . The Western economy right
GCC 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 economy
which had a real GDP of USD 600 billion in         By 2006 , 1.5 million people of Indian origin
2000, had grown to USD 1.2 trillion by 2010.
                                                   were based in the US, forming the 4 th largest
The historic drivers of the Australian economy
                                                   community after Mexico, Philippines and
namely the Service industry and Agriculture saw
                                                   China . Almost 80 percent of the total Indian
a slight reduction in growth as compared to the
                                                   migrant population to the developed countries
Industrial sector. Cement, Gas, Mining and Steel
industries 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 annual
migration to the US saw a new trend – more         cap of 65,000 visas per year worldwide, the US
internal job transfers. As the Indian economy      Senate had to clear a bill for a limited
opened up and attracted heavy inward               expansion of these visas to 337 ,500 for the
movement of MNCs, intra-organisational
boundaries started reducing. Deserving




                                                                                         15
three-year period from 1999 to 2001. This was                that burst the IT bubble than by its actual labour
because the US had faced a decline in key                    market needs, the U.S. government has been
undergraduate science degrees, an acu te shortage            under continuous pressure of different lobby and
of staff in high technology industries like software         business to increase the H1–B visa limit once
development, and exhaustion of the worldwide                 again. Of the 4 states in the US with the largest
annual quota of H–1B visas too quickly in 1998,              Indian population (California, New York, New
with 42 per cent (or two out of every five visas)            Jersey and Texas) – California and Texas has
being 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 to
issued to Indians went down because the                      European nations was more or less stagnant. An
American immigration scenario came to be                     estimated 24% of Indians working in the Eastern
determined more by the post–9/11 security                    European and parts of Western Europe in the
concern 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
Mr. Anirudh Gupta
  - working in the Construction sector for more than 20 years .


              ‘  Quality of life is now excellent in INDIA

When 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 organisations
Construction industry initially for a Construction       colleagues were given the pink slip in a major
equipment manufacturing company and then                 cost cutting move b y the management even
subsequently for a Construction firm itself. The         though I was a consistent performer. I spent
primary reason for me to leave was for monetary          another 6 months in the US looking for other
benefits of working abroad as compared to India          jobs but the situation was very bleak as the
back 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 your
other reasons as well?
                                                         reasons to choosing this location and how do you
Ofcourse the standard of living was much better
                                                         see growth opportunities in your current job and
in 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, I
I would have surely chosen to stay back here.
                                                         got an offer from a US based Construction
                                                         equipment company which was looking at
What were the changes you witnessed once you
                                                         starting operations in India. The company was
moved 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 industry
general?
                                                         was offset by the growth of the Indian
Life undoubtedly was better. But at the same
                                                         construction industr y. Though I had to
time, it is wrong to view that sta tement in
                                                         compromise        marginally    in    ter ms   of
isolation. Many things that we take for granted in
                                                         remuneration, I think in hindsight it was one of
India such as domestic help, chauffeurs, menial
                                                         the wisest decisions I have made.
workers for small household needs etc. is
absolutely 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 originally
But how satisfied were you with your job?
                                                         hail from Punjab, but had no trouble in adjusting
The work was exciting. I t was a pure meritocracy
                                                         to life in Bangalore as it is extremely
and growth opportunities were excellent. I
                                                         cosmopolitan and quality of life is excellent. My
shifted from my industr y to the clients side
                                                         two kids go to an international school which is
without any loss of job responsibilities or
                                                         arguably better than the school they went to in
remuneration. 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
The financial crisis of 2008 and the growing economy of India
combined to change the landscape of migratory trends in
India. For example the Cement industr y which was a major
source of employment for Indians in the developed
economies, took a heavy beating. The cement industr y in the
United Sta tes of America had absorbed a sizable section of
the available labour force. However, available sta tistics
indicate that employment opportunities in this particular
sector have declined over years. In 2009, employment in US
cement industry reduced at a rate of 33% in comparison to
early 1980s. Closing down of relatively s maller kilns (due to
financial constraints) and use of automated machines led to a
drop in available employment opportunities. Similarly in the
Sugar industry in the US, employment in sugar containing
products (SCPs) industries decreased by more than 30,000
jobs between 1997 and 2010 according to the Bureau of
Labour Statistics.

The GFC had a ripple effect on all industries across
the globe. Says M Ananth, who was employed in the
GCC, “Job security drastically reduced in 2008. We were
not sure till when we could continue with our jobs as many
of our peers and collea gues were asked to quit”.This pheno-
-menon though was mostly an aberration. 28 percent of
respondents who came back to India between 2000- 2008
cited “to be part of the Indian growth s tory” as the reason for
moving back. India was growing rapidly in this period, closely
shadowing the other great Asian powerhouse- China . There
was holistic growth and job creation in all industries. Global
organisations in Cement, Au tomobiles, Oil & Gas started
looking at India as a key strategic link in both their supply
chain as well as their point of sales .




                                                                   18
Easing of regulatory and export guidelines also       beneficiary of the surge in infrastructure
saw a boost in the Indian sugar industry in this      investment over the next few years.
period. Although India is the second largest
producer of sugar (16.3 million ton production        Investment in construction accounts for nearly
in 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 investment
government has further agreed to ease export          opportunities emerging in this industry, a large
guidelines, and this sector for certain will          number of international real estate players
continue to see a lot of a ctivity. This period saw   entered the country. Currently, foreign direct
incredible growth in another Indian sector-           investment (FDI) inflows into the sector are
Construction. Construction accounts for nearly        estimated to be between € 3 billion and € 3.50
65 per cent of the total investment in                billion.
infrastructure and is expected to be the biggest




                                                                                              19
Years 2008 onwards – Advantage India
One of the fascinating things in India currently is   as well. Like we earlier dis cussed about MNCs
the relationship between real GDP and                 opening offices in India supported by their
unemployment 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 hiring
to reduce and also reduce at the same rate. The       foreign returned blue collar workers in related
year 2009 (fig. 7) saw a stark increase in            industry sectors.
unemployment rates, but this has since
moderated in 2010. India will continue to create      This is the true a cknowledgement of the Reverse
more jobs than any other emerging nation, and         Migration phenomenon . When jobs are created
in this scenario, reverse migration factored in, is   at rate good enou gh to accommodate both
a 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 easy
collared, there is a concentrated push in both        to understand the rate at which professionals are
these labor sub-set driven industries within India    returning to their native land .




                                                                                                  20
Another               interesting
phenomenon in employment                            Figure 7 : Real GDP vs. Unemployment
options for reverse migrants
is the emer gence of KPO
(Knowledge                Process
Outsourcing)         companies.
                                                                                                      10.8
Many large global Consulting                                                               10.7
                                                                                                      10.4
firms have also opened their
Research Centres in India                              9.2            9
                                             8.9
and most of them have                        8.4
                                                       7.8
dedicated industry practices                                         7.2        7.4         7.4
such as Oil & Gas, Alternate                                                    6.8

Energy, and Construction
etc. Having the availability of             2005      2006          2007
                                                           Unemployment Rate
                                                                               2008        2009
                                                                                    Real GDP
                                                                                                      2010

professionals having spent
time in these domains
around the world is a beneficial situation for                 the West. The future tends to validate the fact
KPOs and one of the reasons for their increasing               that India will continue to see an increase in
numbers. Indian KPOs account for almost 70%                    reverse migration as the countr y is slated to
of global KPO volu mes, and the global KPO                     become one of top 3 economies of the world by
market is expected to grow to USD 17 billion by                2030. Unnamed sources at the Ministry of
2013-14 With the rapid strides in socio-                       Indian Overseas Affairs indicated tha t the growth
economic development in India especially in the                rate of Indians returning to India could be as
urban cities, the difference in the perceived                  high as 10% CAGR from the current 70,000
quality of life factor vis-a-vis India as compared to          Indian nationals returning every year.




                                                                                                         21
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 slowdown


Though 58 percent of respondents who moved to India within this
period indicated tha t the job markets insecurities overseas led them to
make this choice, 34 percent also felt that future opportunities in India
was a key factor in influencing their decisions. Job satisfaction a mong
these respondents was also very high and 60 percent of them felt that
there was no significant difference between working overseas as
compared 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
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     countries
like 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
              India's 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
Conclusion


It is important to understand that the most critical driver of reverse
migration trends will be job satisfaction levels . Though 48 percent of
respondents who favoured the job satisfaction overseas indicated that the
key reason for them was high remuneration, they also indicated that
growth opportunities abroad are rather bleak with only 10 percent
respondents feeling that opportunities abroad are favourable. Though
most respondents felt tha t work-life balance is still better overseas as
compared to India, 20 percent of respondents who favoured job
satisfaction levels in India felt that the working culture in their current
jobs is better than overseas. This coupled with the fact tha t 55 percent of
those preferring India also felt that growth opportunities in India are
better, offsets the difference of 4 percent between those favouring India
as compared to overseas in terms of Job satisfaction. It is safe to assume
that within the next 2-3 years, job satisfaction levels in India will surpass
that of their previous overseas jobs for majority of reverse migrants.

88 percent of respondents feel that public infrastructure has improved
drastically since they left India. One of the reasons for Indians to prefer
living abroad used to be better ancillary services such as healthcare,
schooling for their children, entertainment etc. However, 72 percent of
respondents indicated that the positive change in these services was
among the top 3 changes in India since they lef t. The third major change
indicated by the respondents was better opportunities in all spheres of
life.

It is safe to s tate then that the future looks bright for India, not only from
an economic perspective but also from a sociological viewpoint. As more
Indians working overseas look at coming back to take up challenging and
critical new jobs, their experience abroad will undoubtedly enrich their
colleagues, peers and the local work environment. With the government
spending large amounts of capital on infrastructure and living amenities,
an increasing nu mber of happy, content and driven Indians are expected
to move through the front doors of offices across the country.




                                                                                  24
‘                                                 ‘
The major Automobile                                 After my masters degree, I was working for a large
company I was working                                corporation in Mumbai. They wanted me and a team to
for in Detroit, wanted me                            explore opportunities in Europe and Africa. India all of
to move to India to study                            a sudden was not only a lucrative market for goods and
the potential of the                                 services for global companies, but also an excellent
market here. I jumped at                             market for manpower resources.
the opportunity.
                                                                                                             Siddharth Rajput
                                                                                                               Employed with British Gas
--Anirban Basu
Worked for a large Automobile co. in the
US for 10 years




‘
The reasons for highly skilled
professionals        migrating
abroad is not because the
grass is greener on the other
side, but mainly because the
grass is absolutely dead and
dull 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 same
I 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 working
on their Oil exploration facility. The job paid me as much                                       population.
as 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)
Branch Locations

Gurgaon(Corporate Office)                        Mumbai Commercial Office
Kelly Services India Pvt. Ltd.                   201 A / B 2nd floor,
Unitech Cyber Park, Tower C, 10th Floor          Pramukh Plaza,
Sector -39, Gurgaon -122002,                     Cardinal Gracious Road,
Haryana
                                                 Chakala, Andheri (East)
Tel: 91 124 472 6666
Fax: 91 124 472 6699                             Mumbai 400 099
Email: info@kellyservices.co.in                  Tel: 91 22 66816900/66960260
                                                 Fax: 91 22 6696 0277
Bangalore                                        Email: mumbai@kellyservices.co.in
Kelly Services India Pvt. Ltd.
Sriram Samanthu Chambers                         Mumbai Corporate Office
#3287, 12th Main, HAL 2nd stage,                 304 B “C” Wing 3rd floor,
Indiranagar                                      Pramukh Plaza,
Bangalore - 560 038                              Cardinal Gracious Road,
Tel: 91 80 4191 1800
                                                 Chakala, Andheri (East)
Fax: 91 80 4191 1899
Email: bangalore@kellyservices.co.in             Mumbai 400 099
                                                 Tel: 91 22 66816900/66960260
Chennai                                          Fax: 91 22 6696 0277
Kelly Services India Pvt. Ltd.                   Email: mumbai@kellyservices.co.in
Thulsi' 1st Floor, 79 G.N.Chetty Road, T.Nagar
Chennai - 600 017                                New Delhi
Tel: 91 44 4290 1800                             Kelly Services India Pvt. Ltd.
Fax: 91 44 4264 9030                             Building No.9, Community Centre, Saket
Email: chennai@kellyservices.co.in               New Delhi - 110 017
                                                 Tel: 91 11 4603 0960
Hyderabad
                                                 Fax: 91 11 4161 8965
Kelly Services India Pvt. Ltd.
ANK's Tower.6-3-1086/A                           Email: newdelhi@kellyservices.co.in
Rajbhavan Road, Somajiguda
Hyderabad - 500 082                              Pune
Tel: 91 40 4450 4444                             Kelly Services India Pvt. Ltd.
Fax: 91 40 4020 4452                             ONYX, 10th Floor, Unit No.1002
Email: hyderabad@kellyservices.co.in             37/3, North Main Road,
                                                 Koregaon Park Annex,
Kolkata                                          Pune - 411001`
Kelly Services India Pvt. Ltd.                   Tel: 91 20 6680 5200
M.A. Business Centre
                                                 Fax: 91 20 6609 4164
Suite No.207, 5th Floor
Poddar Point, 113, Park Street                   Email: pune@kellyservices.co.in
Kolkata - 700016
Tel: 91 33 2217 1595 - 98 Extn -128
Fax: 91 33 2217 8932
Email: kolkata@kellyservices.co.in




 RECRUITMENT | OUTSOURCING     | CONSULTING

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Reverse Migration Whitepaper

  • 1. Reverse Migration Of Engineering Professionals Into India –Helping Shape India’s Economy
  • 2. Executive Overview Labour mobility is a global and increasingly widespread Trend. Skilled Labour is becoming increasingly 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 4 decades. Some of the developing countries including India have benefitted from the huge remittances it receives from its citizens abroad. But it is not just people from the developing countries 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 in search of greener pastures. The last two decades India has created opportunities for itself in the 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 its growth demands. Power is definitely a determinant factor and so are the engineers to build the plants, roads and factories India desperately needs. Kelly Engineering Resources takes a peak at the engineers who are returning and why and where they are relocating . This research focuses on the talent landscape of returning Indians and evaluates the context of returning Engineers . 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. An estimated 3,00,000 Indian professionals working overseas are expected to return between 2011- 2015. Are there suitable jobs available to them? Is a better life awaiting them on their return? In a nutshell- is India ready for them, and more importantly are they ready for a new India? 1
  • 4. Contents Introduction 3 Migration from India- Historical Perspective 5 Global Trends 6 Reverse 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 20 Looking forward to India 23 Conclusion 24 2
  • 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 people India 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 drafting return to India for varied reasons,not the least of and implementing Migration Policies to attract which is the obvious growth of India as an only the best talent to its shores. This holds a economic powerhouse and one of the top 3 paradox within itself. Assuming that the global nations worldwide fuelling global economic community is s tressing on GloCalisation growth . (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 on 1980-1999 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. This means tha t even after factoring in the rate of migration will continue. Actually, carefully growth of developing nations and the s tagnant managed migration is a powerful tool for economies of the developed countries, the economic growth in destination countries, and amount of manpower required for the developed for income generation and development in countries 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. Migration from India - Historical Perspective The ter m “Brain Drain” is a modern phrase bank of 1980s – 1990s, and subsequently to brain connotingan a ge old phenomenon The migration . gain in the 21st century. Similarly, the labour of 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 foreign been taking pla ce for centuries. It is wrong to exchangereserves. presume that brain drain adversely affects the parent country or incrementally benefits the To look at it broadly, the migration trends of the destination country. In a more politically correct 20th century from India can be broken into 3 tone, 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 to migrants 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 Sciences centuries. Beginning in 1950s, and picking up as 1960s uptil 1980s- Sproutin numbersmoving for brain drain in 1960s, skilled migration to higher education in varied fields but still mostly developed 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 Oil Beginning with the oil–boom of the 1970s, large numbers 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 direct Professionalsleaving 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. Global Trends The total population of international migrants in illustrates the fact that India is the world’s highest 2010 is about 214 million. India ranks at no. 9 as remittance receiver with close to USD 50 billion the 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 further migrants – the USA ranks no. 1 with close to 45 understanding two aspects about the majority of million foreign born nationals Adding further to Indian workers. One is, it is clear that Indians our hypothesis that migration also in fact assists migrate in large nu mbers in search of better in 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. 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 Organisation What types of ou tward-migratory trends have across skill sets, geographies and sectors. A lot of been 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 usual geographic clusters- USA and Canada; UK; and numbers from Oil & Gas. Middle East. These trends have changed What initiatives should government take in order somewhat over the last decade with new to continue this momentum? geographies such as Australia and NZ; Western Play a regulatory role in the return and Europe (Germany, Belgiu m, France) and parts reintegration process, with regard to employment of 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 of albeit a very miniscule number to pay much reverse migration? attention to. Most professionals from South Unfriendly labour policies and practices, lack of India 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 is but always with the intention of returning to reducing gradually at least in Tier- I Indian cities India. This was quite unique to the Middle East What according to you is the future of reverse itself. 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 the for a better life and in the hope of settling there global economic contraction as well as global permanently. These professionals were organisations looking at India from a key market employed primarily in the EPC industry. point of view, we will not be wrong to say that But now, reverse migration has ceased to be just more and more Indians based overseas would a phenomenon relevant to a particular worker profile or geography. It is an increasing trend want to return to India. 7
  • 10. It is validated that India does and will continue to professionals actually prefer to move back to have the largest working population globally. But India because of the changing global workspace what 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. 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 it b 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. As the domestic Oil industr y in the US was a key Visa rules were supportive of this movement as source of recruitment back in the pre-1980 era, it well. Thus a majority of the respondents who has since continued to decline and this trend migrated during this period cited a co mbination shares a direct correlation with the surge of the of better remuneration and growth opportunities same 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 scholarships the pre-1980 years in the US were heavy extended by US universities and it is easy to industries such as Cement and Engineering. The understand why so many Indians moved during Auto giants at Detroit were yet to bear the brunt that time. To look at the o ther geographic of the Japanese attack, and in general the location for mass movement of Indians, one has economic 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 2001 What is equally important to note is that a lot of Mumbai – the Middle East . Though Oil was Indians before 1980 moved to the US for discovered in the Gulf in the 1930 s, the academic reasons as well. Almost 47% of the number of Indians in the region was respondents we surveyed who had moved before considerably small and grew gradually from 1980 had done so for this purpose. And almost about 1,400 in 1948 to 40,000 in the early 77% of these respondents had mo ved for post- 1970 s. This was to see a sudden burst of graduate 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 entire Arts in that order. US universities during this period were very receptive of the quality of story . During the years 1977 -1981 , the US Indian under-graduate education and were also made a conscious effort to stop further large acutely aware of the benefits that would accrue scale exploration of Oil & Gas in its own from these students for the US academia and territory and started depending majorly on the industry. 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. Key Findings of the Survey Key reason to move overseas >10 years 2008-2011(Post Recession) 8% 35% <3 years 21% How many years were you based Internal job transfer 33% overseas? Higher studies 60% 3-5 years 2000-2008(Pre Recession) 26% 16% 5-10 years 28% Better opportunities 57% Higher studies 30% Job transfer 12% >10 years 9% <3 years 1980-1999 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. Years 1980-1999 – The Gulf Years As 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, 1.4 moving rapidly - adopting new technologies and million Indians worked and lived in the GCC ideas. This period saw an increase in the number Countries, a majority of these from the Southern of Indians moving to the Gulf as compared to states. An overwhelming 90% of the Indians any other region. Most migrants hailed from the working in the GCC were either employed in Oil Southern states of Kerala, Tamil Nadu, & Gas or the EPC industry. The remaining were Karnataka 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 Gulf time they moved abroad. Though a vast majority (61%) moved for further studies, at the same Country 1983 1987 1991 time almost 58% of the remaining working S Arabia 2,70,000 3,80,000 6,00,000 migrant population moved to the Gulf regions. Indian migrant workers in the GCC countries UAE 2,50,000 2,25,000 4,00,000 cater to all three categories of labour. The highly Oman 1,00,000 1,84,000 2,20,000 skilled and technically trained professionals Kuwait 1,15,000 1,00,000 88,000 remain in great demand in the government departments and the public sector enterprises. Qatar 40,000 50,000 75,000 Bahrain 30,000 77,000 1,00,000 They are also allowed to bring in their families Total 8,05,000 10,16,000 14,83,000 and children. However, about 70% of the Indian Source: Rahman (1999) 12
  • 15. The above statement b y Mr. Anirban Basu numbers moving to the Middle East, there was clearly indicates that there is a latent desire in all a significant number of Indians returning migrants to come back to their native land only if during this period . Though it is tough to the macro-conditions are similar. The factors that ascertain the split between the nu mbers moving usually influence the outward movement of back to India between 1980-1999, it is a safe workforce 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 reasons 62 percent of the 38 percent of working Since 1992 the rate of job creation in India professionals 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 opportunities remuneration 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. 18 level, percent period also validated better job back in this the reasons influencing their culture as these words are important as they imply that one of decision to move back . most people moving abroad are mainly doing so because of the void in their native land . This hypothesis is an interesting one, and the events of the next decade go a long way in supporting 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. Mr. Munish Kohli, - working in the Oil & Gas sector for more than 12 years . ‘ Growth opportunities in India - way better than the Middle East When did you leave India and for what reasons? within the organisation and the industry itself I 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 comfortable moving was due to the better remuneration but the job was not giving me much comfort there. from a long term point of view. Also the news of India’s growth story was the talk of town, so to Was that the only decisive factor or were there say. We started hearing how jobs in India now other reasons as well? paid better, infrastructure in certain states was It was the primary reason. Though I had heard improving rapidly and the growth opportunities that the standard of living was way better than in these jobs was wa y better than the Middle India. 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. This What were the changes you witnessed once you was absolutely not possible in the UAE. moved to the UAE as compared to here in India? Both in terms of your job as well as life in Where are you based currently, what were your general? reasons to choosing this location and how do you See when I moved there initially, what struck me see growth opportunities in your current job and foremost 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 large in terms of basic a menities, in terms of options of Indian Oil & Gas company. I feel Oil and Gas is entertainment and leisure – all in all it was way the Sector which ultima tely drives the growth of a better than I was used to living in Mumbai before country. All Industrial growth is a direct variant I 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 my state than previously, enjoying life after work, and interactions with my former colleagues in UAE, I still managed to save sufficient amounts of my constantly hear how the salary levels have been salary 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 about moving back to India? After living in the UAE for over 3 years, I started realising that growth opportunities 14
  • 17. Years 2000 - 2008 - From Y2K to GFC The new century started with an incredible employees were sent overseas to company increase in outward migration from India. Mostly Headquarters, R&D installations, setting up migration still centred around the Americas, new markets etc . The Western economy right GCC 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 economy which had a real GDP of USD 600 billion in By 2006 , 1.5 million people of Indian origin 2000, had grown to USD 1.2 trillion by 2010. were based in the US, forming the 4 th largest The historic drivers of the Australian economy community after Mexico, Philippines and namely the Service industry and Agriculture saw China . Almost 80 percent of the total Indian a slight reduction in growth as compared to the migrant population to the developed countries Industrial sector. Cement, Gas, Mining and Steel industries 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 annual migration to the US saw a new trend – more cap of 65,000 visas per year worldwide, the US internal job transfers. As the Indian economy Senate had to clear a bill for a limited opened up and attracted heavy inward expansion of these visas to 337 ,500 for the movement of MNCs, intra-organisational boundaries started reducing. Deserving 15
  • 18. three-year period from 1999 to 2001. This was that burst the IT bubble than by its actual labour because the US had faced a decline in key market needs, the U.S. government has been undergraduate science degrees, an acu te shortage under continuous pressure of different lobby and of staff in high technology industries like software business to increase the H1–B visa limit once development, and exhaustion of the worldwide again. Of the 4 states in the US with the largest annual quota of H–1B visas too quickly in 1998, Indian population (California, New York, New with 42 per cent (or two out of every five visas) Jersey and Texas) – California and Texas has being 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 to issued to Indians went down because the European nations was more or less stagnant. An American immigration scenario came to be estimated 24% of Indians working in the Eastern determined more by the post–9/11 security European and parts of Western Europe in the concern 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. Mr. Anirudh Gupta - working in the Construction sector for more than 20 years . ‘ Quality of life is now excellent in INDIA When 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 organisations Construction industry initially for a Construction colleagues were given the pink slip in a major equipment manufacturing company and then cost cutting move b y the management even subsequently for a Construction firm itself. The though I was a consistent performer. I spent primary reason for me to leave was for monetary another 6 months in the US looking for other benefits of working abroad as compared to India jobs but the situation was very bleak as the back 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 your other reasons as well? reasons to choosing this location and how do you Ofcourse the standard of living was much better see growth opportunities in your current job and in 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, I I would have surely chosen to stay back here. got an offer from a US based Construction equipment company which was looking at What were the changes you witnessed once you starting operations in India. The company was moved 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 industry general? was offset by the growth of the Indian Life undoubtedly was better. But at the same construction industr y. Though I had to time, it is wrong to view that sta tement in compromise marginally in ter ms of isolation. Many things that we take for granted in remuneration, I think in hindsight it was one of India such as domestic help, chauffeurs, menial the wisest decisions I have made. workers for small household needs etc. is absolutely 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 originally But how satisfied were you with your job? hail from Punjab, but had no trouble in adjusting The work was exciting. I t was a pure meritocracy to life in Bangalore as it is extremely and growth opportunities were excellent. I cosmopolitan and quality of life is excellent. My shifted from my industr y to the clients side two kids go to an international school which is without any loss of job responsibilities or arguably better than the school they went to in remuneration. 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. The financial crisis of 2008 and the growing economy of India combined to change the landscape of migratory trends in India. For example the Cement industr y which was a major source of employment for Indians in the developed economies, took a heavy beating. The cement industr y in the United Sta tes of America had absorbed a sizable section of the available labour force. However, available sta tistics indicate that employment opportunities in this particular sector have declined over years. In 2009, employment in US cement industry reduced at a rate of 33% in comparison to early 1980s. Closing down of relatively s maller kilns (due to financial constraints) and use of automated machines led to a drop in available employment opportunities. Similarly in the Sugar industry in the US, employment in sugar containing products (SCPs) industries decreased by more than 30,000 jobs between 1997 and 2010 according to the Bureau of Labour Statistics. The GFC had a ripple effect on all industries across the globe. Says M Ananth, who was employed in the GCC, “Job security drastically reduced in 2008. We were not sure till when we could continue with our jobs as many of our peers and collea gues were asked to quit”.This pheno- -menon though was mostly an aberration. 28 percent of respondents who came back to India between 2000- 2008 cited “to be part of the Indian growth s tory” as the reason for moving back. India was growing rapidly in this period, closely shadowing the other great Asian powerhouse- China . There was holistic growth and job creation in all industries. Global organisations in Cement, Au tomobiles, Oil & Gas started looking at India as a key strategic link in both their supply chain as well as their point of sales . 18
  • 21. Easing of regulatory and export guidelines also beneficiary of the surge in infrastructure saw a boost in the Indian sugar industry in this investment over the next few years. period. Although India is the second largest producer of sugar (16.3 million ton production Investment in construction accounts for nearly in 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 investment government has further agreed to ease export opportunities emerging in this industry, a large guidelines, and this sector for certain will number of international real estate players continue to see a lot of a ctivity. This period saw entered the country. Currently, foreign direct incredible growth in another Indian sector- investment (FDI) inflows into the sector are Construction. Construction accounts for nearly estimated to be between € 3 billion and € 3.50 65 per cent of the total investment in billion. infrastructure and is expected to be the biggest 19
  • 22. Years 2008 onwards – Advantage India One of the fascinating things in India currently is as well. Like we earlier dis cussed about MNCs the relationship between real GDP and opening offices in India supported by their unemployment 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 hiring to reduce and also reduce at the same rate. The foreign returned blue collar workers in related year 2009 (fig. 7) saw a stark increase in industry sectors. unemployment rates, but this has since moderated in 2010. India will continue to create This is the true a cknowledgement of the Reverse more jobs than any other emerging nation, and Migration phenomenon . When jobs are created in this scenario, reverse migration factored in, is at rate good enou gh to accommodate both a 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 easy collared, there is a concentrated push in both to understand the rate at which professionals are these labor sub-set driven industries within India returning to their native land . 20
  • 23. Another interesting phenomenon in employment Figure 7 : Real GDP vs. Unemployment options for reverse migrants is the emer gence of KPO (Knowledge Process Outsourcing) companies. 10.8 Many large global Consulting 10.7 10.4 firms have also opened their Research Centres in India 9.2 9 8.9 and most of them have 8.4 7.8 dedicated industry practices 7.2 7.4 7.4 such as Oil & Gas, Alternate 6.8 Energy, and Construction etc. Having the availability of 2005 2006 2007 Unemployment Rate 2008 2009 Real GDP 2010 professionals having spent time in these domains around the world is a beneficial situation for the West. The future tends to validate the fact KPOs and one of the reasons for their increasing that India will continue to see an increase in numbers. Indian KPOs account for almost 70% reverse migration as the countr y is slated to of global KPO volu mes, and the global KPO become one of top 3 economies of the world by market is expected to grow to USD 17 billion by 2030. Unnamed sources at the Ministry of 2013-14 With the rapid strides in socio- Indian Overseas Affairs indicated tha t the growth economic development in India especially in the rate of Indians returning to India could be as urban cities, the difference in the perceived high as 10% CAGR from the current 70,000 quality of life factor vis-a-vis India as compared to Indian nationals returning every year. 21
  • 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 slowdown Though 58 percent of respondents who moved to India within this period indicated tha t the job markets insecurities overseas led them to make this choice, 34 percent also felt that future opportunities in India was a key factor in influencing their decisions. Job satisfaction a mong these respondents was also very high and 60 percent of them felt that there was no significant difference between working overseas as compared 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. 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 countries like 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 India's 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. Conclusion It is important to understand that the most critical driver of reverse migration trends will be job satisfaction levels . Though 48 percent of respondents who favoured the job satisfaction overseas indicated that the key reason for them was high remuneration, they also indicated that growth opportunities abroad are rather bleak with only 10 percent respondents feeling that opportunities abroad are favourable. Though most respondents felt tha t work-life balance is still better overseas as compared to India, 20 percent of respondents who favoured job satisfaction levels in India felt that the working culture in their current jobs is better than overseas. This coupled with the fact tha t 55 percent of those preferring India also felt that growth opportunities in India are better, offsets the difference of 4 percent between those favouring India as compared to overseas in terms of Job satisfaction. It is safe to assume that within the next 2-3 years, job satisfaction levels in India will surpass that of their previous overseas jobs for majority of reverse migrants. 88 percent of respondents feel that public infrastructure has improved drastically since they left India. One of the reasons for Indians to prefer living abroad used to be better ancillary services such as healthcare, schooling for their children, entertainment etc. However, 72 percent of respondents indicated that the positive change in these services was among the top 3 changes in India since they lef t. The third major change indicated by the respondents was better opportunities in all spheres of life. It is safe to s tate then that the future looks bright for India, not only from an economic perspective but also from a sociological viewpoint. As more Indians working overseas look at coming back to take up challenging and critical new jobs, their experience abroad will undoubtedly enrich their colleagues, peers and the local work environment. With the government spending large amounts of capital on infrastructure and living amenities, an increasing nu mber of happy, content and driven Indians are expected to move through the front doors of offices across the country. 24
  • 27. ‘ The major Automobile After my masters degree, I was working for a large company I was working corporation in Mumbai. They wanted me and a team to for in Detroit, wanted me explore opportunities in Europe and Africa. India all of to move to India to study a sudden was not only a lucrative market for goods and the potential of the services for global companies, but also an excellent market here. I jumped at market for manpower resources. the opportunity. Siddharth Rajput Employed with British Gas --Anirban Basu Worked for a large Automobile co. in the US for 10 years ‘ The reasons for highly skilled professionals migrating abroad is not because the grass is greener on the other side, but mainly because the grass is absolutely dead and dull 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 same I 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 working on their Oil exploration facility. The job paid me as much population. as 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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