GHRM REPORT

ON
INFLUX OF EXPATRIATE POPULATION
(Submitted to: Professor Shrimi Srivastava)
Submitted by: Group-9

Minita Gupta (11)

Sayani Mahapatra (20)

Lipsita Badajena (27)

Jains Chereath (38)

Prachi Tandon (51)

Debanti Lahiri (55)

ACKNOWLEDGEMENT
 CONTENTS

S.NO TOPIC PAGE NO

1. INTRODUCTION………………………………4-14
Meaning of Expatriate…………………….......5

Expatriates in developed countries…………....8

Popular Expatriate Destination……………..…9

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

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

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

2. STUDY OF EXPATRAITE IN THREE DIFFERENT

COUNTRIES……………………………………………………...15-
35
India..........................................................…...16

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

Saudi Arabia….…….………………..…….….33

3. CONCLUSION…………………………………………………..36

4. BIBLIOGRAPHY……………………………………………….38
INTRODUCTION
 INTRODUCTION
The 2010 Global Workforce Study pinpoints a watershed moment in the
evolution of the employment relationships around the world. From the global
recession and financial defaults to changes in business models and strategic
priorities, both employers and employees are being forced to revisit some
fundamental assumptions about their implicit and explicit "compact" with one
another.

The war for talent never ends.

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

EXPATRIATE DEFINATION AND MEANING

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

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

In many cases, the term expatriate refers to people that do not plan to reside
in their new country permanently and normally retain their citizenship for
practical purposes. In this strict sense, expatriates differ from ‘immigrants’
who usually plan to reside permanently in a new country and acquire
permanent citizenship there. In addition, many people use the term
expatriates only for skilled workers from developed countries who are
temporarily working abroad (i.e. American expatriates in Spain), thus
differentiating between expatriates and economic migrants who move abroad
for socioeconomic reasons.

In reality, these distinctions are becoming more and more blurred. While the
number of highly skilled expatriates from developing countries increases,
there are also an increasing number of expatriates from developed countries
that are moving abroad for retirement and other reasons. For example, there
are today skilled workers from India working worldwide and and an increasing
number North American expats retiring in Central and South America.
Depending on the exact definition of expatriates the following groups of
international migrants can be counted as part of the expatriate market:

• Professional working abroad, often on limited length assignments

(some people restrict the term expatriates to this group)
• Lifestyle migrants that move abroad in search of a better way of life.
This includes the increasing number of pensioners that move to hotter
countries, because of the climate and lower cost of living
• International students studying abroad
• Economic migrants, people that move abroad for economic reasons as
they can earn significantly more money and/or have an improved
standard of living
FUNCTION AND APPLICATION OF EXPATRIATE WORKERS IN
INTERNATIONAL ASSISGNMENTS

The function and application of expatriate workers in international

assignments was originally intended as a way to initiate, expand and control
international operations. Currently, the purpose of international expatriate
assignments has evolved along with the changing globalization trends.
Expatriate international assignments require that cost effectiveness and
appropriateness issues be considered. Since globalization is now the current
trend, it is important to be able to manage these international workers
strategically and effectively.
The study reveals that organizations have an increasing amount of
expatriation in all four types of international assignments.

TYPES OF EXPATRIATE ASSIGNMENTS

1. Long-term expatriate assignments. Expatriate assignment is

referred to as a long-term assignment where the employee and his/her
spouse/family move to the host country for a specified period of time,
over one year.

2. Short-term expatriate assignment is an assignment with a specified

duration, usually less than one year. Family may accompany employee.

3. International commuter is an employee who commutes from the

home country to a place of work in another country, usually on a
weekly or bi-weekly basis, while the family remains at home.

4. Frequent flyer is an employee who undertakes frequent international

business trips but does not relocate.

The number of people moving country is increasing across all expatriate

categories - irrespective of motivation, geographic origin and social
background. While the percentage of migrants in the total population of
developed countries continues to increase, there are also an increasing
number of expatriates from developed countries that move abroad for
professional or personal reasons.
 EXPATRIATES IN DEVELOPED COUNTRIES

In developed countries, expatriates and migrants now account for almost

10% of the total population, making them an attractive target group for many
industries. However, the countries with the highest percentage of expatriates
are in the Middle East. In the United Arab Emirates, expatriates make up
more than 70% of the total population, followed by Kuwait with more than
60% (United Nations, 2005 ). In Europe, the country with the highest ratio of
expatriates is Luxembourg (more than 30% of total population), followed by
Switzerland (more than 20%).

When it comes to total numbers, the US is leading the worldwide ranking with
more than 38 million expatriates living there, followed by the Russian
Federation (12 million) although this figure is skewed by nationals from
former USSR states. In Europe, the ranking is led by Germany with more than
10 million foreigners living there, followed by France. However, this picture
might change significantly in the future; Germany and France host a lot of
migrants that have moved there over the last few decades, the country with
the highest number of inbound arrivals is today Spain.
Irrespective of their exact number, expatriates and migrants have become an
increasingly important socioeconomic factor in developed countries, changing
cultural habits and the rules of economics and marketing. This trend is likely
to continue in the future, with more and more developed countries becoming
multicultural societies.

POPULAR EXPATRIATE DESTINATIONS

The number of expatriates moving to a certain country should be good

indicator of a country’s attractiveness. However, this figure does not
necessarily correspond with the quality of life for expatriates in this country
as much migration is motivated by economic opportunity. Balancing short-
term economic gain against varying levels of comfort living in another
country is a key decision point for many expats.

When it comes attracting expatriates, Spain is leading the ranking of

worldwide expatriate destinations. In 2008, the country welcomed almost
800,000 foreigners, followed by Germany and the UK (Eurostat, 2008). In
2008, expatriates already accounted for 11.4% of the Spanish population,
and this number is expected to increase to some 20% in the future. However,
the worsening economic outlook in Spain points to a reversal in these figures
so the picture could change rapidly over the next couple of years.
 EXPATRIATE STATISTICS AND CHARACTERISTICS

When talking about expats as a group, it is important to bear in mind that

there are large differences between one country and another. However, we
can generalise that compared to the average, expatriates tend to more highly
educated, have a higher than average income and face some very specific
challenges when moving abroad (like learning the local language)

 HIGH EXPATRIATE INCOME

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

 LUXURIOUS EXPAT LIFESTYLE

Due to their higher incomes then average incomes and addition support from
employers, many expatriates experience a more luxurious lifestyle abroad
than at home.
More than half (58%) of expatriates save and invest more money abroad than
in their home country - despite spending more money abroad than at home.
After their move abroad, expatriates tend to spend more on food (+25%),
shopping (+22%), accommodation (+18%) and socializing (+15%).
Nevertheless, their expatriate benefits often allow them to enjoy luxuries
abroad that they didn’t have at home, such as private health care and private
education for their children.

 LANGUAGE AND OTHER PROBLEMS

When moving abroad, expatriates face a range of challenges. Many expats do

not speak the local language of the country they’re living in, although an
increasing percentage tries to learn it. This language barrier makes it harder
to deal with local service providers, thus generating a need for specialized
services. Despite their language problems, an increasing number of
expatriates try to make friends within local communities, which goes against
the stereotype of the “typical expat” that doesn’t try to integrate into the
local society.

 CULTURE PROBLEMS

When it comes to making new friends and adapting to the local culture, there
is also a big difference between destination countries. According to HSBC
Expat Explorer Survey, Canada seems to be the most welcoming countries to
expatriates, with almost all (95%) of respondents claiming that they made
friends with local people. This was followed by Germany (92%) and Australia
(91%). The United Arab Emirates was revealed to be the most difficult
country to make friends with local, with only half (54%) of expatriates saying
they made any local friends at all. This "ease of integration" also seems to be
a decisive factor when it comes to the most popular expatriate destinations.
Although socializing with other expats partially compensates the lack of local
friendships, it certainly doesn’t ease integration in the local society and often
gives the impression that expatriates are ‘not interested in integrating’ or
‘prefer their own social circles’. That said, many expatriates tend to make
friends with other expatriates in the country they live in.

QUALITY OF EXPATRIATE LIFE

When it comes to quality of life, however, the picture becomes more

complicated. According to the HSBC Expat Explorer survey (2008), there
seems to be a very strong difference between the subjective “experience” of
expatriates living abroad and the more objective criteria like the standard of
living.
The most popular countries in terms of expatriate experience are Germany,
followed by Canada and Spain. In these countries, expatriates tend to make
local friends, learn the local language, join a community group or even buy a
property. Expatriates in these countries find it generally easy to integrate,
including their family and children (over two thirds of expatriate children
speaking two or more languages!).The worst countries in terms of expat
experience are the United Arab Emirates and China, where most expatriates
find it extremely hard to integrate into local society or make local friends.
However, when it comes to “hard facts” such as financial wealth,
accommodation and luxury, the picture changes drastically. On these criteria,
the most attractive expatriate destinations are Singapore, followed by the
United Arab Emirates and the United States. The highest expatriate salaries
are paid in India and Hong Kong, where almost half of expatriates earn more
than £100,000 (~€120,000) per year.

EXPATRIATE BENEFITS
Most expatriates receive a range of benefits that goes significantly beyond
the benefits of other employees. These expatriate benefits reflect the special
situation of expatriates and often include the following:

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

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

• RELOCATION BENEFITS: Besides covering the cost of the actual

move, relocation benefits often cover special assistance abroad, i.e.
through a relocation agent.
• ACCOMMODATION BENEFITS: If accommodation costs are
significantly higher in the destination country, most companies pay
their expatriates special benefits or provide subsidized or free housing.
Besides financial incentives, direct help to find accommodation is
appreciated by most expatriates, since the search for accommodation
is generally on of the most stressful and time-consuming challenges of
the move.
• LANGUAGE TRAINING: Expatriate benefits for language training not
only increase the professional capabilities of expatriates sent abroad,
but also help them integrate better in their new environment. Ideally,
the language training should start well in advance of the relocation.
• EXPATRIATE FAMILY BENEFITS: When sending expatriates abroad, it
is important to remember that the relocation affects the whole family,
especially the spouse. Family problems are therefore one of the most
common reason for expatriates to break off their assignment earlier
than planned. To ease the family relocation and tensions that go along
with moving abroad, companies often offer support and financial help in
finding schooling for kids. If the expatriate’s spouse has been working
before, some companies may also help them obtain a work visa and a
job to compensate for potential loss of income. Non-working expatriate
 spouses might receive help in finding unpaid activities (such as
volunteer work or studies).
• EXPATRIATE TRAINING AND COUNSELLING: Although these are
less common, training and counselling are an important part of
expatriate benefits. Before departure, expatriates should receive cross-
cultural training to help prepare for the challenges abroad. After their
assignment abroad, expatriates could receive repatriation assistance to
help them readjust back home. Since the move back is often even more
challenging than the move abroad, many companies try to provide a
challenging assignment upon return.

In general, expatriate packages and expatriate benefits tend to be adapted to

the individual situation and assignment of each expatriate. A young single
graduate going abroad will face different challenges on his move abroad than
a senior manager with family and children.
In addition, the expatriate destination also has a significant impact on the
expats’ situation. While some countries like China and the United Arab
Emirates are often regarded as ‘hard’ destinations, Western European
countries such as Spain or Germany are often viewed as easier destinations
to adapt to. This is also reflected in expatriates salaries and benefits: The
more difficult the destination is perceived by expatriates, the financial
incentives and expatriate benefits on offer tend to be more attractive.

EXPATRIATE CHALLENGES

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

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

As a general rule, many expatriates seem to underestimate the challenges of

moving abroad. According to a survey of Just Landed among German
expatriates in 2008, 68% of expatriates found the move abroad “more
difficult than expected”, while only 8% found it “easier than expected”. The
biggest problems mentioned of German expatriates were

• Adapting to the local culture (85%)

• Finding new friends (72%)
• Learning the local language (42%)
• Finding accommodation (38%)
STUDY OF EXPATRIATES
IN THREE DIFFERENT
COUNTRIES
 INDIA
 OECD COUNTRIES
 SAUDI ARABIA

EXPATRIATE IN INDIA
India is known to be a major exporter of expatriates, with many Indians
holding management positions in international companies located in Asian
countries. However is also receiving an increasing number of inbound expats.
According to reports in 2006, over 50,000 expatriates have flocked to work in
India, of which nearly a quarter reside in Bangalore. A rapidly growing
economy has made India a more attractive place for expats to work in and it
is no longer tagged as a `hardship posting'.

To address skilled labour shortages, India launched the Overseas Citizenship

of India program in December 2005. The program provides anyone born in
India, or whose parents or grandparents were born there, a multi-entry, multi-
purpose, lifelong visa, making it even easier to live and work in India. The
inflow of expats into India will include an increasingly large component of
foreign nationals of Indian ethnicity.

For the past five decades, India's best and brightest were lured by the
glamour of the West. Today, growing numbers of Europeans and Americans
seem to be enchanted by India. Many of them are discovering heady
professional opportunities in the country's booming information technology
sector. Some have fallen in love with the culture, others with the weather, yet
others with the food and in some cases with someone here.
By far the biggest draw for recent expatriates is the information technology
industry, but they are also sprinkled in the hospitality and media industries

The main reason why expatriates make their home in India is

”There was a time when multitudes of talented Indians fled Indian shores in
search of the ideal job and the perfect foreign posting with a prominent
company. India was hemorrhaging droves of talented professionals to a
better paying and more appreciative overseas public. But the tide is changing
and how.”

A country with 9% growth rate can definitely take up young professionals in

the corporate industry at a faster pace and with a better paying salary. Today
along with a growing number of Indians, American as well as European
professionals are finding India a good place to enter a lucrative profession! A
booming information technology, hospitality, retail, telecommunications,
insurance and media industry has made a large variety of niche jobs available
for expats.

The main expertise areas for expats are the jobs that cannot be filled with
local talent like voice and culture trainers for call centers or foreign language
trainers. Higher level jobs are also given to veteran foreign professionals.
Around 6,000 to 7,000 foreigners are issued residential permits each year
and all of them consider Indian job tenures as a potential asset to their job
history.

But along with the great salaries and prominent positions, India has also been
offering a whole range of facilities which generally are not available abroad.
Cities like Bengaluru have a large expat population which is more than willing
to guide newcomers. With a better salary, perks that are normally impossible
to enjoy in developed countries become affordable. Here are some:
 The sheer thrill of working in a booming economy can be addictive.
Most foreign nationals consider a three-year stint in India an asset to
their résumés.
 Bigger houses in better localities, drivers, maids, nannies, and
gardeners as well as a good support system have made life for working
expat wives pretty easy.
 Food, especially Indian, is relatively cheap but eating out in western
restaurants could be expensive.
 Due to the currency difference, transportation can be pretty cheap and
easy to get.
 The administrative pay packets for all international staff are
competitive in India, and most of the times are on par with global pay
scales.
 Parents who worry about the education of their children have a wide
variety of international schools with a great curriculum to choose from.
 Medical facilities are good and on par with most international cities
especially in the metros.
 Social and cultural life in the metros is booming.

CHALLENGES FACING EXPATRIATE JOB SEEKERS IN INDIA

A study of the labor market in India reveals numerous challenges facing

expatriates wishing to work on the local economy, including:

• Offshore Employment Placement Practices: Most expatriates

working in India have secured their jobs prior to moving to India.
• Work Permits: Although the US and India have an agreement that
enables their diplomatic spouses to work in each other’s countries,
most expatriate spouses from other countries do not have this
privilege.
• Compensation Rates: Even when a person has a job offer, the salary
rates are exceedingly low. A “good” local salary is approximately 25% -
30% of what professionals would earn in the United States or Europe.
Many positions pay far less.
 • Work Week and Vacation Days: Indian firms normally work 5 ½ - 6
days per week and grant fewer paid vacation days than offered by most
U.S. and European companies.
• Working Conditions: Although most companies have air-conditioned
offices with good office infrastructure, many do not.
• Culture of Work: Indian firms have no tradition of hiring consultants
or employing individuals who know that they will live in India for just 2-
5 years. In addition, although English is often the official language of
the workplace, it is not the informal language; workers without
knowledge of Hindi can feel somewhat isolated in their daily work.
• Licensing Issues: Some fields, including medicine and law, are not
easily open to expatriates due to specific constraints and licensing
issues.
• Geographic Issues: New Delhi is a very large city, spread over many
kilometers with minimal transportation infrastructure. Moreover, the
growth areas of the city are located 10-20 kilometers from residential
areas where most expatriates live, adding as much as a two hour
commute for some workers.
• Competition: India’s emerging middle class labor market is well
educated, and many workers with excellent skills are willing to work for
local pay rates that are much lower than an expatriate worker is willing
to consider.
• Lack of “Professional” Volunteer Roles: it is difficult to find
challenging volunteer roles since charitable organizations have little or
no experience supporting creative volunteers working in their
programs. This situation limits opportunities.
• High Touch in a High Tech Environment: In spite of the technology
boom, networking and personal connections are still necessary to
locate a satisfactory job.

OPPORTUNITIES FOR EXPATRIATE JOB SEEKERS

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

• English is the language of business in India. Although not used in all

aspects of work, most growth industries require that their employees
use English daily. There seems to be a demand for accomplished native
English speakers and writers.

• Indian Firms Offer Key Opportunities: There are some Indian firms
developing new lines of work and contemporary business practices.
They are open to hiring qualified expatriates for full-time work or in
 consulting roles. Although the salaries offered are less than optimal,
many of these organizations offer roles of significance that are
appealing to expatriates.

• Expatriates Work in Interesting Roles: Expatriates can find

interesting, challenging roles, often with daily access to chief executive
officers and policy-makers.

• International Businesses and Non-profit Organizations: An ever-

increasing number of international firms and non-profit organization are
conducting business in India. Although they hire most of their staff
members locally, many retain a small number of expatriate staff and
intermittent consultants. These organizations are often willing to hire
qualified expatriates living in India instead of recruiting talent offshore.
Salaries are usually competitive with international standards.

• Buying Power of the Indian Rupee: A comparison of the relative

purchasing power of India and the United States reveals that India’s per
capita GDP of $523 provides $2,686 in purchasing power. In the US, a
GDP of $35,000 purchases $37,000 worth of goods and services.
Therefore, a rupee-denominated salary purchases many more local
goods and services in India than the dollar equivalent salary buys goods
and services in the US.

• Relatively High Value Placed on Qualified Expatriate Workers:

Highly trained, experienced professionals from any country are valued
by organizations based in India. If an expatriate has the necessary skills
and expertise, a number of firms are willing to tailor their offers to meet
the applicant’s needs. Self-Employment Options: The large
expatriate community and a growing Indian middle class create a
demand for a number of goods and services that can be provided by
self-employed individuals who target those individuals in their
marketing plans.
 • Meaningful Volunteer Opportunities: Although there is no
significant tradition in India of nonprofit organizations using highly
skilled volunteers in their programs, a few of these organizations are
open to the possibility of talented, dedicated volunteers with specific
skills.

EXPATS IN VARIOUS SECTORS IN INDIA

IT & ITES SECTOR: India’s information technology industry is becoming

more and more reliant on expatriate resource in order to fill key skills and
training gaps experts report. The leading Indian software companies like
Infosys and Wipro both employ hundreds of foreigners.
Infosys Technologies as being a company that is representative of current
trends. This IT firm currently has over 100 expatriates employed within
middle and senior management positions.
For a company like Wipro, which employs people from 70 different
nationalities in various countries, cross-cultural training. WiproTech has the
maximum number of nationalities within various departments of Wipro.

PHARMA SECTOR: There is a huge dearth of clinical research professional in

pharmacy sector in India. There is a need for core skills in drug research.
Expats with such superior skills are adding value to the drug pharma sector
with their expertise. They have experience in high end research and thus
prove to be strength for the company who hire them.

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

KPO SECTOR: Companies hire specialized business analysts expats to add

value to their work and benchmark its employees so that they perform with
same efficiency. Evalueserve has 40 expats among total workforce of
900employees. Moreover to deal with cultural issues, companies are actively
arranging training programs to help expats understand the company culture
better.
BANKING AND FINANCIAL SECTOR: there is a vast increase in the no. of
expats in various banks and financial institutions in India in recent
years .Insurance firms typically hire expats to fill management positions in
finance and actuarial services, in which the local talent pool is limited.

Increase In the number of expats working in different sectors

 Automobile – 3 times
 Banking and financial sectors - 5 - 6 times
 Infrastructure – 10 times
 Pharma & life sciences – 5 times
 Retail and supply chain - 0.4 times

MOST POPULAR DESTINATION OF EXPATS IN INDIA

Many foreigners working in India are on assignment with multinational

companies from their headquarters. Bangalore was far more attractive and
peaceful, and this could have influenced their decision to stay on here.
While most expatriates in Bangalore draw salaries equivalent to their Indian
counterparts in the profession, some, especially in the BPO segment,
command higher compensation due to their international exposure and
language proficiency.

Banaglore's expatriate community has a wide cross section of people, from

CEOs of multinational corporations to recent graduates. Some of them can
afford very affluent lifestyles, comparable to or even better than that in their
home countries Bangalore ranks highly among the expatriate community.
Several expatriates interviewed expressed a marked preference for
Bangalore, mainly because of the large expatriate community here and also
because of its weather, which does not get extremely hot or cold. Other cities
of choice include Pune, New Delhi, Hyderabad and Mumbai.

BANGALORE : Most popular expat destination in India

Bangalore has able to served expatriates in all manners, whether it

International food joints like KFC & MC Donalds, or branded clothing like
lifestyle, organic vegetable such as Namdharis or hang out places like Coffee
days, baristas or Leela coffee house etc,
But most important of all these are education for their children, which
Bangalore has again proved itself. It has good number of international schools
which facilitate expatriate parents to enroll their kids in them.

International schools like Trio World School meet all the criteria to call itself
“Truly International School”. They have international standard and mostly
foreign faculties and students from many countries. They have Cambridge
curriculum which is followed worldwide, so parents need to worry about
transition of their kids’ schooling, when they return back to their country on
completion of their project in India. There are also wealth of private schools
that rival or top those in the West. Some utilize Western education theory and
offer different types of learning environments, such as Montessori schools.
There are dozens of English-language bookstores available. Art lessons,
music instruction, horseback riding, and every other pursuit an expatriate
family might want for spouses and children abound.

Cost of living is reasonable, comparing quite well with cities in Western

Europe and North America. Though this is expensive by Indian standards, the
well-fueled economy in Bangalore has brought a thriving sector of well
educated Indians and foreigners to the city. As of 2008 the price of an
average 2-bedroom apartment might range from roughly $350 to $1,100 per
month.

There are also extensive communities of expats from every country that does
businesses in Bangalore 's IT and BPO (business process outsourcing) sectors.
Into these communities have come vast arrays of businesses that cater to
them, and service professionals in a variety of roles, speaking a babble of
languages. Maids, cooks, and nannies can be found at reasonable cost,
including those who speak English and other common expatriate languages.

RESOURCES FOR EXPATRIATE IN INDIA

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

 RELIGION: Expatriate communities throughout India have established

their own places of worship. The majorities are Christian churches, but
there are also several Jewish synagogues. Because of its large
expatriate population, Bangalore is home to quite a few Christian
churches.

 EDUCATION: India offers many educational opportunities. There is an

extensive list of schools including international schools, private schools
and state schools. International schools offer a wide range of
curriculums including US, UK, AP, national and IB (International
Baccalaureate). New Delhi and Mumbai offer spacious, well-equipped
international schools, but other smaller schools offer opportunities for
numerous nationalities. International schools are only open to foreign
nationals, so there is practically no Indian integration. There are
American, British, French, Japanese and Scottish schools scattered
throughout the country, as well as numerous local Indian national
schools.

EXPATRIATE WEBSITES AND RESOURCES FOR INDIA

 ALLOEXPAT.COM is an information and resource portal for expatriates

living in or moving to the Asia-Pacific region, including an online forum
for expatriates in India.
 BRITISH EXPAT is a site for British citizens living abroad, featuring a
British Expat Forum, with a section on Asia, including India with a
section on New Delhi and Mumbai.
 EXPAT BLOG is a worldwide directory of blogs related to expatriate
life, with listings for India.
 EXPAT EXCHANGE provides a wealth of resources and articles, as well
as a forum. The site has a few useful articles and links about India.
 EXPATRIATES.COM is an online community for expatriates, has a
section on India, with classified ads, links, and a bulletin board.
 FAWCO (FEDERATION OF AMERICAN WOMEN'S CLUBS
OVERSEAS), www.fawco.org, is an international network to support
American women living abroad with over 70 member clubs worldwide,
including India.
 MEETUP lists group meetings in cities around the world to help bring
people with common interests together and promote the development
of active local communities. Search for expatriate groups in India all
over the country.
 NEWCOMERS CLUB WORLDWIDE is a worldwide directory of
newcomers clubs for newly arrived expatriates, including India.
  TALES FROM A SMALL PLANET, www.talesmag.com, is a webzine
with news, stories, links, excellent message boards, and other
resources for travelers and expatriates. The India section features "Real
Post Reports" by expatriates, as well as useful links.

THREAT TO INDIAN WORKFORCE

The trend of expats occupying key positions and leadership roles is hitting
the Indian corporate these days. According to a recent study by Credence
Research and Analytics (CRA), there are 40,000 expats in India presently; and
out of them, almost 15% are in leadership roles. It is believed that expat
managers have more abilities when compared to their Indian counterparts.
Though Indian leadership has been long known for its passion, commitment
and ability to tackle diverse situations, expats demonstrate a higher risk
taking ability, transparency and accountability. Expat managers act as key
source of innovations for the company and help in maintaining harmony
throughout the company. While some companies see this trend as a threat
for Indian talents, others see it as a sourcing strategy wherein companies
look out for the right candidate for a right job. Such companies debate that
while searching for a right candidate, skills and attitude should be given more
weight age and factors like nationality should be ignored.

From the perspective of labor markets, candidates feel that as more and
more expats may occupy key roles in companies in near future, this trend can
pose a threat to their career progression. Besides this, some facts go against
expats occupying key roles. This includes their commitment to stay for a long
term with the company, poor understanding of Indian markets and
environment and ability to deal with diverse workforce.
EXPATRIATE POPULATION IN OECD
COUNTRIES

In OECD countries, the retention of qualified persons and the return of

expatriates constitute important challenges to which several countries have
tried to respond. Several recent studies undertaken at the OECD have
demonstrated that the question is more complex than is often depicted
(OECD). As a result, current statistics tend to show a rather imperfect image
of the actual extent of migration in general and of the movements of the
highly skilled in particular, both with respect to movements from developing
to developed countries but also within the OECD area as well. With the 2000
round of censuses, however, virtually all OECD countries have incorporated in
their census a question on the country of birth of persons enumerated, as
well as on their nationality. With this information, it is possible to provide, for
the first time, a detailed, comparable and reliable picture of immigrant
populations within OECD countries, reflecting the cumulative effect of
movements within and to the OECD area over the past decades.

EXPATRIATES OF OECD MEMBER COUNTRIES RESIDING IN

ANOTHER MEMBER COUNTRY
Much attention has been directed in recent years within OECD countries at
the emigration of highly qualified persons, attracted to countries where job
opportunities are more prevalent and research funding more generous. Solid
evidence regarding the extent of this phenomenon has been notably absent
from the public debate. Although the database described here does not allow
one to remedy this as yet with respect to recent departures, it does provide a
broad overall picture of expatriation over the past decades.

In the 29 OECD countries currently under review, 36.3 million persons, i.e.
46% of the total foreign-born population, come from another OECD country.
In certain host countries, such as Luxembourg, the Slovak Republic, Ireland,
Mexico, the Czech Republic and to a lesser extent Switzerland and Belgium,
the share of the foreign-born from other OECD countries is very high
(between 65% and 85%). At the other extreme, it is close to 24% in Hungary,
Poland and Korea and only 11% in Japan.

The largest expatriate group consists of persons born in Mexico, with nearly
9.5 million people, of whom the vast majority are resident in the United
States. The number of persons born in Germany and in the United Kingdom
residing in other OECD member countries is also large, more than 3 million
people for each of them. The number of persons born in Turkey, Italy and Poland and
residing in other OECD countries amounts to over 2 million persons each
OECD EXPATRIATES IN OTHER OECD COUNTRIES

Nationals registered Native-born living abroad at

abroad
embassies or consultates 1
(OECD Censuses)

United States 3 071 167 1 227 249

France 1 392 764 1 119 130

Switzerland 828 036 319 176

Australia 562 668 328 405

Japan 556 561 656 690

Expressed as a percentage of the total population, almost 24% of people

born in Ireland are currently living in another OECD member country . Other
significant expatriate communities include persons born in New Zealand
(16%), Portugal (13.7%), Luxembourg (12.8%) and Mexico (9.9%).

Within the OECD area, only the United States, Australia, Canada, Switzerland,
Spain, Sweden, Luxembourg and Norway (in this order) are net beneficiaries
of highly skilled migration from other OECD countries. The United Kingdom
has 700 000 more highly skilled expatriates in OECD countries than it has
highly skilled immigrants from other OECD countries. Comparable figures
exceed 500 000 for Germany, 400 000 for Mexico and 300 000 for Poland.
France and Belgium have almost as many highly skilled immigrants from, as
expatriates, to OECD countries. This of course gives only a partial picture of
brain drain / brain exchange, because it does not include movements of the
highly skilled between non-OECD and OECD countries. When movements
from all countries to the OECD are included, the picture changes significantly.
 HIGHLY EDUCATED

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

Within the OECD area, only the United States, Australia, Canada, Switzerland,
Spain, Sweden, Luxembourg and Norway (in this order) are net beneficiaries
of highly skilled migration from other OECD countries. The United Kingdom
has 700 000 more highly skilled expatriates in OECD countries than it has
highly skilled immigrants from other OECD countries. Comparable figures
exceed 500 000 for Germany, 400 000 for Mexico and 300 000 for Poland.
France and Belgium have almost as many highly skilled immigrants from, as
expatriates, to OECD countries. This of course gives only a partial picture of
brain
drain / brain exchange, because it does not include movements of the highly
skilled between non-OECD and OECD countries. When movements from all
countries to the OECD are included, the picture changes significantly.
One of the most striking examples of “brain drain” is British expatriates: On
average, 5.6% of the British population lives abroad as expatriates. This level
of expatriation more than doubles to 12.2% among the highly skilled
proportion of the working population. Put another way, more than one out of
ten highly skilled British workers lives abroad.

The difference between the number of highly skilled emigrants to OECD

countries and highly skilled immigrants from all countries is largely positive in
the United States (+8.2 million), Canada and Australia, but also in France and
Germany, even though these countries have a significant number of highly
skilled expatriates in other OECD countries. Highly skilled immigration
expressed as a percentage of the total highly skilled workforce is particularly
significant (over 20%) in Australia, Luxembourg, Switzerland, Canada and
New Zealand. The percentage of the highly skilled who are expatriates is
below 10% for most OECD countries and particularly low in Japan, the United
States, Spain and Australia. Conversely, more than 10% of the highly skilled
born in Switzerland, Portugal, Austria, or the United Kingdom are living in
other OECD countries. This percentage is over 20% for three countries:
Luxembourg (22.2%), Ireland (24.2%) and New Zealand (24.2%). This
phenomenon is the result of pull factors attributable to selective migration
policies in receiving countries, but also to other factors such as the fact that
highly qualified persons are more tuned into the international labour market
(because of social capital, language skills, access to information) and have
more resources to finance a move.

PERSONS WITH TERTIARY EDUCATION BY PLACE OF BIRTH, SELECTED

OECD COUNTRIES

Native-Born Foreign-Born Expatriates

Canada 31.5 38.0 40.6

France 16.9 18.1 36.4

Germany 19.5 15.5 30.4

Hungary 10.7 19.8 29.6

Korea 26.7 32.2 44.2

New Zealand 27.3 31.0 44.6

Sweden 22.8 24.2 40.1

Switzerland 18.1 23.7 36.5

United States 26.9 24.8 49.9

Among non-member countries the biggest expatriate community is that

originating in the former USSR with 4.2 million people, followed by the former
Yugoslavia (2.2 million), India (1.9 million), the Philippines (1.8 million), China
(1.7 million), Vietnam (1.5 million), Morocco (1.4 million) and Puerto Rico (1.3
million)18. Among persons with tertiary education, the former USSR still ranks
first (1.3 million) with India having the second largest expatriate community
(1 million).

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

permanent immigration is subject to a points system with an increasing
emphasis on the potential immigrant’s profile (age, education, skills, work
experience). Permanent skilled immigration to these countries has
significantly increased in the past four years (by almost 25%) and temporary
immigration of highly skilled workers is facilitated more and more. In a similar
vein, the Czech Republic has recently implemented a programme aiming at
recruiting highly skilled workers through a point system.

In addition to immigration policy measures, some OECD countries have

introduced specific fiscal incentives to attract highly skilled migrants. Some of
these offer virtual income taxfree status for up to 5 years for certain
categories of highly qualified personnel most in need, or large tax deductions
(e.g. 25% in Sweden, 30% in the Netherlands, 35% in Austria or 40% in
Korea). New legislation along the same lines has been adopted recently in
France and is under consideration in New Zealand.

FISCAL INCENTIVES

AUSTRALIA In order to encourage businesses requiring a skilled

labour force to locate in Australia, since July 1, 2002,
foreign source income of eligible temporary residents is
exempt from tax for 4 years.

AUSTRIA An individual who has not had a residence in Austria

during the past 10 years, who maintains his primary
 residence abroad and has an assignment with an
Austrian employer for less than 5 years benefits from
tax deductions for up to 35% of the taxable salary
income for expenses incurred in maintaining a
household in Austria, educational expenses and leave
allowances.

BELGIUM Certain foreign executives, specialists and researchers

residing temporarily in Belgium are eligible for a
special tax regime that treats them as non-residents.
Taxable income is calculated by adjusting the

remuneration according to the number of days spent

outside Belgium. Reimbursements of expenses incurred
by an employee as a result of his temporary stay in
Belgium are not subject to personal income

tax.

DENMARK A special expatriate tax regime applies to foreigners

employed by Danish-resident employers. Under
qualifying contracts, salary income is taxed at a flat
rate of 25% instead of the usual rates of 39% to 59%.

To qualify, expatriates must reside in Denmark and

earn more than 50 900 DKK a month in 2001. This tax
regime is valid for up to 36 months.

FINLAND A foreigner working in Finland may qualify for a special

tax at a flat rate of 35% during a period of 24 months if
he receives any Finnish-source income for duties
requiring special expertise and earns a cash

salary of €5,800 or more per month. This law provides

that the expert has not been resident in Finland any
time during the five preceding years.

FRANCE Recent legislation changes which aim at encouraging

foreign professionals to work in France include a 5-
year tax exemption for bonuses paid to foreign
expatriates where these are directly related to their
assignment in France, and tax deductions for social
 security payments made by the expatriates in their
home countries. A deduction will also be available for
pension and health care payments made outside
France. It applies to foreign professionals (including
French nationals with a foreign labour contract who
have been residing out of France for a least 10 years)
coming to France from 1 January 2004.

JAPAN For expatriates living in Japan, relocation allowances

and once-a-year home-leave allowances are generally
tax-free

KOREA Since January 2003, tax-free allowances of up 40 per

cent of salary to cover cost of living, housing, home
leave and education. Tax-exempt salary for certain
sectors for up to 5 years if the individual is (i)

employed under a tax-exempt technology-inducement

contract or (ii) a foreign technician with experience in
certain industries.

NETHERLANDS Expatriates may qualify for a special facility called the

“30 per cent” (previously the “35 per cent”). This
enables an employer to pay, for up to 10 years,
employees seconded in the Netherlands a tax-free

allowance of up to 30% of regularly received

employment income and a tax-free reimbursement of
school fees for children attending international schools.

NEWZEALAND A government discussion document, released in

November 2003, outlines proposals to exempt the
foreign sourced income of certain migrants and
returning New Zealanders from New Zealand's
international tax regime. It is aimed at ensuring that
New Zealand's tax system does not discourage the
recruitment of overseas employees. The Government
has proposed two possible approaches:

• a narrow exemption that would apply for seven years

and focus on those tax rules that are more
comprehensive than the international norm; and
 • a second option that would apply for three years and
provide eligible taxpayers with a broad exemption from
paying New Zealand tax on all foreign-sourced income.

NORWAY Expatriates expected to reside in Norway for 4 years or

less may be allowed a 15 per cent standard deduction
from their gross income instead of itemised personal
deductions

CANADA Researchers can benefit from 5-year tax relief in the

province of Québec on 75% of their personal income if
they settle in Quebec to work in R&D in a firm.

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

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

EXPATRIATE POPULATION IN SAUDI

ARABIA
In Saudi Arabia, Expatriates are generally hard working professionals, skilled
and semi-skilled labor. They fill important jobs throughout the economy that
Saudis cannot fill or are unwilling to fill. Expatriates have been critical to
Saudi Arabia’s economy since it was established as a Kingdom by King Abdul
Aziz 77 years ago, and have contributed to its growth and development
continuously.

SAUDI TOP DESTINATION FOR EXPATRIATES IN GULF

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

EXPATRIATE STATUS

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

RELIGION OF EXPATRIATES

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

LANGUAGES KNOWN TO EXPATRIATES

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

A COMPARATIVE STUDY OF RISE IN EXPATRIATES

 2009 1999
1989

Indians 1.5 million 1 million 300,000

Egyptians 1.2 million 1 million 300,000
Pakistanis 1.2 million 1 million 300,000
Filipinos 1.2 million 600,000 100,000
Jordanians 500,000 300,000 100,000
Syrians 400,000 300,000 50,000
Sudanese 300,000 200,000 50,000
Lebanese 400,000 200,000 50,000
Yemenis 600,000 100,000 1 million
Afghanis 200,000 100,000 50,000
Bangladeshis 200,000 150,000
50,000
Sri Lankans 200,000 100,000 100,000
Europeans 150,000 100,000 100,000
North Americans 50,000 50,000
50,000
Others 700,000 800,000 400,000
TOTAL Expatriates: 8.8 million 6 million 3
million

CHALLENGES FOR EXPATRIATES IN SAUDI ARABIA

The major challenges Saudi Arabia face, are inability to mobilize female
Saudi workforce, and continued reliance on Expatriate workers who earn low
wages to do work that they have decided that they won’t do . In brief, they
need to be more efficient and sophisticated in use of Expatriate labor,
especially considering high female unemployment, and serious shortages of
water and electricity that cannot support high population numbers in the
Kingdom.

Many expatriates will come to Saudi Arabia to work in the medical and
education sectors. That’s not to say they are not employed in other sectors;
they are. However the medical and teaching sectors are most prominent. An
expatriate experience in working in the teaching or medical sectors really
depends on where they are located, who their employer is and the terms of
the contract. But they may not have all the full standard benefits as larger
employers.
EXPATRIATE WOMEN EXPERIENCE

Expat women in Saudi Arabia face a much different experience than their
male counterparts. For some, wearing an abaya and headscarf, not being
allowed to drive and abiding by the rules that govern interaction among the
sexes are just a formality. For others, they turn out to be a source of great
frustration. Any woman considering a move to Saudi Arabia, should really do
her research, talk with other women in the cities where she may be living,
and, if married, discuss the positives and negatives at length with your
husband.

A single expat woman to be allowed to live by herself in an apartment or a

rental house due to the Kingdom’s strict stance on a male mahrem. Also for
a woman’s own safety reasons, it is best for her to live on a compound. The
exception to this rule is if a woman lives alone in an apartment or a rental
house within the diplomatic quarter. There have been several women who
will choose to rent a large apartment or house together in the diplomatic
quarter rather than stay at a compound as they feel they have more freedom
and independence away from the compound.
CONCLUSION

FINDINGS
The opportunities for foreigners to find work in India, and Bangalore in
particular, are growing. There is a need for foreign language trainers and
also executives. Salaries are often competitive with those in their home
countries and the experience of having worked in India is increasingly
looked at favorably on resumes.

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

Bangalore's reputation as a technology hub has made it the destination of

choice for recent expatriates. Presently, estimated 10,000-12,000 foreigners
live or work in Bangalore.

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

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

WEBSITES:

www.little to India/Expats In India.com

www.transitionabroad.com
RESEARCH PAPERS AND ARTICLES

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

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

Barro RJ. and JW. Lee, 1993, International Comparisons of Educational

Attainment, Journal of Monetary Economics, 32, 363-94
(http://www.nuff.ox.ac.uk/Economics/Growth/barlee.htm)

Barro RJ. and JW. Lee, 2000, International data on Educational Attainment :
updates and implications, NBER Working Paper n°7911
(http://www2.cid.harvard.edu/ciddata/)

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

Cohen D. and M. Soto, 2001, Growth and Human Capital: good data, good
results, OECD Development Centre WP n°179
(http://www.oecd.org/dataoecd/33/13/2669521.xls)
THANK YOU