Presentation for fellow recruiters about Hiring Options in India

1. Discover India:
A Global Talent Hub

2. Discover India: A Global Talent Hub
• India - Economic Overview
• India – The Demographics
• Key Challenges for Search Firms
• Conclusion

3. Discover India: A Global Talent Hub
Economic Overview
- 5,000 year old ancient civilization
325 languages spoken – 1,652
dialects 18 official languages
- 29 states, 5 union territories 3.28
million sq. kilometers - Area 7,516
kilometers - Coastline 1.3 Billion
population.
- 5600 dailies, 15000 weeklies and
20000 periodicals in 21 languages
with a combined circulation of 142
million.
- GDP $576 Billion. (GDP rate 8%)
- Parliamentary form of Government
Worlds largest democracy. Worlds
4th largest economy.
- Largest English speaking nation in
the world. 3rd largest standing army
force, over 1.5Million strong.

4. Discover India: A Global Talent Hub
Economy Surging ahead
Economy on course for growth of 8.7%
Fastest growth in 18 years
A consumption-driven boom
New emerging middle class, IT/BPO spillover ITES
growth in 2007/08 of 31%
Wage gains fuelling buoyant demand
Spending rather than saving And borrowing
heavily
Trade, hotels, transport, comms: up 12% (from
10.4%) Manufacturing up 11.9% (from 9.1%)
Banking, insurance, business services: up 13.9% (from 10.9%)

5. Discover India: A Global Talent Hub
Indian Economy poised for sustained growth of 8% over the next 10 years ; GDP growth pegged at
8%
50% of India’s population is under 25 years of age and 80% under 45 years
Increasing urbanization has led to changing consumption and spending patterns 4India, the third
most attractive Foreign Direct Investment destination, next to China and US
Strong emphasis on English as the means of education, with a specialist thrust on science and
mathematics
One million new English speaking graduates pass out every year
High quality technical skills driving India towards becoming the global R&D hub
More than 120 MNCs have already set up R&D labs in the country
India increasingly being recognized as a low-cost production base - outsourcing of manufactured
goods is the new trend

6. Discover India: A Global Talent Hub
The Demographics: India and the Global Talent Pool - A Comparison
Low Medium High
India Israel Russia Ireland Canada China Philippines
Government Support
Labour Pool
Infrastructure
Educational System
Cost Advantage
Quality
Cultural Compatibility
English Proficiency
Overall Climate
Source: Gartner Research
1/7/2008 Cost, Quality & Language advantages

7. Discover India: A Global Talent Hub
India - Demographic advantage
• Largest youth population (One quarter of the world’s youth lives in India) •
Growing literacy rate.
• Large pool of professionals and technocrats •
Largest pool of English speaking manpower after US
India
Demographics assure increasing domestic demand
Set to become service provider to the world

8. Discover India: A Global Talent Hub
Future Demographics - 2020
India Demographic China Demographic France Demographic
Profile (2020) Profile (2020) Profile (2025)
Age group Age group Age group
80+ 80+ 80+
75-79 75-79 75-79
70-74 70-74 70-74
65-69 65-69 65-69
60-64 60-64 60-64
55-59 55-59 55-59
50-54 50-54 50-54
45-49 45-49 45-49
40-44 40-44 40-44
35-39 35-39 35-39
30-34 30-34 30-34
25-29 25-29 25-29
20-24 20-24 20-24
15-19 15-19 15-19
10-14 10-14 10-14
5-9 5-9 5-9
0-4 0-4 0-4
-60 -40 -20 0 20 40 60 -60 -40 -20 0 20 40 60 -3 -2 -1 0 1 2 3
60 40 20 60 40 20 3 2 1
Mn people Mn people Mn people
20 - 35 age group : 20 - 35 age group : 20 - 35 age group :
325 mn people (~25 %) 308 mn people (~21 %) 11 mn people (~17 %)
Source: CII Conference 2002; CSFB Report; UN Population Division; BCG Analysis Female Male
25 % of total population is in the peak Working Age

9. Discover India: A Global Talent Hub
This results in …
Potential surplus population in working age group (2020)
-3 Mn
Germany
UK
-2 Mn
Czech
Russia
0Mn Republic -6
-1
Ireland Mn Turkey Mn
Iraq 2Mn
-17Mn France -3 Mn China -10
US 2Mn Israel -9 Mn Japan
Iran Pakistan
Mn
Spain -3 Mn 0Mn 5Mn
-2 Mn 19
3Mn Mn 7 Philippines
Italy Mn
5Mn 4Mn
47 Bangladesh
Mn
Mexico Egypt
India 4Mn
Vietnam
1Mn
Malaysia
3Mn 5Mn
Indonesia
Brazil
-0.5
Mn
Australia
Source : Hewitt 2006 Study
India likely to have a 47 Mn Working population Surplus

10. Discover India: A Global Talent Hub
Leading to… Destination India ?
India has among the
India is among the
highest returns on
three most attractive
foreign investment
FDI destinations in
the world
US Department of Commerce
A T Kearney FDI Confidence
Index 2005 By 2032, India will be
among the three largest
economies in the world
BRIC Report by Goldman
Sachs, October 2003
“India is a developed
country as far as
“We came to India for the intellectual capital is
costs, stayed for the quality concerned.”
and are now investing for
innovation.”
Jack Welch
General Electric
Dan Scheinman, Cisco System
Inc. Business Week, August
2005

11. Discover India: A Global Talent Hub
Key Challenges… Bridging Cultural Gaps
- Indians are more aligned to western styles of management - “command and control” is not very
effective
- Life term employment is no longer seen as desirable, or in the best interest of the Executive
- India is a very diverse and heterogeneous country - there is no one right answer
- Designation, Titles and career Promotions very important for Indian Managers
- Indians pay greater regard to intellectual ability rather than craftsmanship- Technical staff is
typically paid lower than Managerial talent
- Indians tend to over-commit and have difficulty in saying “No” - need to have a monitoring and
review mechanism in place
Understanding Cultural issues is critical for Success

12. Discover India: A Global Talent Hub
A few trends in Executive Search
Booming Indian economy
Leading to phenomenal growth of Executive Search firms in India
Clients are looking for trusted business advisors
Search firms need to transform themselves
Global shortage of right talent - companies need specialist who help them
hire…..
Increasing Indian Companies are setting up businesses overseas……. Indian
talent gaining recognition in the Global Landscape….foreigners looking jobs
in India, New MNCs Coming in.
Recruitment Industry in India is estimated at around over 2 Billion
Dollars (Source: Service Tax Collections)
Increased competition at higher end of the market
More international search firms setting up shop in India….
Second round of consolidation expected….
MNCs acquiring local firms to get a toe hold in the “ Hot” Indian Market.
Indian Executive Search Industry is at a Crossroad

13. Discover India: A Global Talent Hub
Hiring challenge that Search Firms & Cos. face
- High Growth Model, Sourcing mix is different
- Entry Hiring 10 – 40%
- Contingency workforce not popular
- Experienced Hiring – Cost Impact is controlled
(Direct Hiring – 35%, Employee referral – 35%)
- Leadership Hiring – Potential for Expats/ Returning Indians very high as companies go
global
Hiring challenges have a different texture in India

14. Discover India: A Global Talent Hub
The Changing Environment
Conclusions …
- Indian economy is growing fast. Presents a variety of opportunities.
- India presents itself as both a source & destination for Talent.
- Indian Corporates are also looking to expanding across continents.
- Collaboration among NPA Members could be the value add !!
Its going to be an exciting ride … Are you game ?

15. Discover India: A Global Talent Hub
Psst……Indians in the USA.
Statistics shows:
38% of doctors in the USA,
12% of scientists in the
USA, 36% of NASA
scientists, 34% of
Microsoft employees, 28%
of IBM employees, 17% of
INTEL scientists, 13% of
XEROX employees,
… are Indians. US H1-B Visa
applicants country
of origin
1.India 44%
Of the 1.5M Indians living in the USA, 1/5th of them live in the Silicon Valley. 2.China 9%
3. Britain 5%
4. Philippines 3%
35% of Silicon Valley start-ups are by Indians. 5. Canada 3%
6.Taiwan 2%
Indian students are the largest in number among foreign students in USA. 7. Japan 2%
8. Germany 2%
9. Pakistan 2%
10. France 2%