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Global expansion of Indian MNCs a challenge
By    siliconindia news bureau
Thursday, August 28, 2008
Bangalore: The rapid global growth of India-based multinationals and the increasing employee mobility are compelling companies to address policy issues on international assignments, according to a study by Mercer.

The report titled 'Expatriate Management Survey : India' is based on contributions from 40 of the largest corporations in India and addresses India-specific nuances and practices as these companies send employees on international assignments.


The report identifies the latest international assignment policies for managing a globally mobile group of employees. It also describes expatriate compensation approaches, trends in expatriate allowances and support, and the use of varying assignments which include short term, long term and commuter assignments.
"Organisations are cognizant that international assignments - and, in particular, those which include family relocation - call for significant investments," says Gangapriya Chakraverti, Business Leader, Information Product Solutions for Mercer India.

"They would like to ensure that their investments deliver an acceptable return by carefully choosing only the best people for the assignments and making efforts to retain them during and after the assignments overseas," Chakraverti added.

An article appeared in Mint says that the companies are also looking for ways to reduce costs wherever possible by hiring local staff instead of making an expatriate assignment.

In order to address ever-evolving business and employee needs, companies are now structuring their international assignment policies based on the nature of the assignment and the importance of the role within the organizational framework.

     
   
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Reader's comments(5)
1 It will be good if Silicon valley can also do a article on how employees going
abroad from MNCs on global assignments are treated. Are they treated the same
way as the employee coming in? or are MNCs following the footsteps of Indian
companies sending employees abroad compelling Indian employees to share
accommodation and live on meagre per diems?
Posted by: gt
2 Saying that company is suffering looks ridiculous to me.If you consider the
amount which a company gets on onsite deputation, than well company is at a
higher level. Besides, no company does business when its running in loss...

Today, companies are doing cost-cutting and they are reducing the facilities
provided to employees earlier which makes employee suffer. So, well the above
article looks like only one side of story to me.
Posted by: jayesh garg
3 All international companies are dealing with the same debate; to what extent do
you need to use locally recruited staff, or send people on international
assigments for a job? Of course, international assignments are a part of
personal development, but for the company, costs are becoming quite important.
In the past, international assignments were a way to spread expertise, and to
retain staff, but as staff turnover rates increase this is less tenable, the
locally engaged staff route is becoming more popular. In my firm, international
assignment are becoming less common as posts are filled by locally recruited
people. This is not just an indian issue, but a global issue, although indian
firms are behind other countries, as the process of globalisation is relatively
new ...
Posted by: Rahul
4 Most of the Indian companies that have international operations are yet far from
being global in their approach. Since the Business Plan these companies draw
takes into consideration the hard facts like possible market share, sales
volume, and financial earnings and what the Business Plan fails to include is
the HR plan. Thereby, these companies fail to realize the potential rewards they
had planned for while drawing there business plans.
We are still on a learning curve and while some companies are quick to realize
the fact that there is ‘no one suit fits all’ solution to this others are
looking for a simplistic copy paste approach.
Message for the companies aiming to go global is to make HR Planning an integral
plan of Business Plan because only then they can look into and address all the
issue of local hire or/and Indian hire in context of market requirements, local
legal requirements and the associated economics.
Posted by: Hridayesh Dua
5 I think this is a good measure from the side of MNCs. They need not take people
from India to abroad. Operations in one country should be carried out by people
in the same nation
Posted by: Jawahar