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 becomingincreasingly mobile as skill shortages and slow population growth sets in the developed world.The added dimension of aging is allowing governments to incentivise migration .

The developed world is set to witness an influx of over 100 million people over the next 4decades. Some of the developing countries including India have benefitted from the hugeremittances it receives from its citizens abroad. But it is not just people from the developingcountries who are migrating . Global mobility is a trend seen in all countries at all skill levels.

Before the liberalisation and during liberalisation many skilled Indians migrated abroad insearch of greener pastures. The last two decades India has created opportunities for itself inthe world of talent compelling Indians abroad to look back.

India’s GDP growth in double digits is based on India’s ability to produce coal to meet itsgrowth demands. Power is definitely a determinant factor and so are the engineers to build the plants, roads and factories India desperately needs. Kelly Engineering Resources takes a peakat the engineers who are returning and why and where they are relocating . This researchfocuses on the talent landscape of returning Indians and evaluates the context of returningEngineers .

As India needs to focus on multiple channels for its engineering talent needs of tomorrow,Kelly examines one such source of talent of returning Indians.

Hope this e n gineers some thinking on talent !

Kamal Karanth ,Managing Director

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

Executive Overview

Labour mobility is a global and increasingly widespread Trend. Skilled Labour is becomingincreasingly mobile as skill shortages and slow population growth sets in the developed world.The added dimension of aging is allowing governments to incentivise migration .

The developed world is set to witness an influx of over 100 million people over the next 4decades. Some of the developing countries including India have benefitted from the hugeremittances it receives from its citizens abroad. But it is not just people from the developingcountries who are migrating . Global mobility is a trend seen in all countries at all skill levels.

Before the liberalisation and during liberalisation many skilled Indians migrated abroad insearch of greener pastures. The last two decades India has created opportunities for itself inthe world of talent compelling Indians abroad to look back.

India’s GDP growth in double digits is based on India’s ability to produce coal to meet itsgrowth demands. Power is definitely a determinant factor and so are the engineers to build the plants, roads and factories India desperately needs. Kelly Engineering Resources takes a peakat the engineers who are returning and why and where they are relocating . This researchfocuses on the talent landscape of returning Indians and evaluates the context of returningEngineers .

As India needs to focus on multiple channels for its engineering talent needs of tomorrow,Kelly examines one such source of talent of returning Indians.

Hope this e n gineers some thinking on talent !

Kamal Karanth ,Managing Director

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 gainPre 1980Years 1980-1999 – The Gulf YearsYears 2000 – 2008 – From Y2K to GFCYears 2008 onwards – Advantage India

79121520

Looking forward to India 23

Conclusion 24

2

Contents

Introduction 3

Migration from India- Historical Perspective 5

Global Trends 6

Reverse Migration to India: from brain drain to brain gainPre 1980Years 1980-1999 – The Gulf YearsYears 2000 – 2008 – From Y2K to GFCYears 2008 onwards – Advantage India

79121520

Looking forward to India 23

Conclusion 24

2

2008-2011(Post recession)

3

An emerging aspect of global manpower flowsthat is developing in a pronounced manner inIndia is Reverse Migration. More and moreprofessionals working overseas are choosing toreturn to India for varied reasons,not the leastofwhich is the obvious growth of India as aneconomic powerhouse and one of the top 3nations worldwide fuelling global economicgrowth .

Insecure job market overseas 58%

Personal growth opportunities 34%

Native place 28%

Family related reason 62%To be part of the Indian growth story

28%

Better working culture 8%

Family related reason 56%To be part of the Indian growth story

30%

Better working culture 18%

Native place 57%

Personal growth opportunities 33%

38%

2000-2008(Pre recession) 29%

1980-1999 28%

Pre 1980 5%

Overseas 62%India 38%

The world in general is witnessing a change.Migration levels are increasing as more peopleare looking for better jobs and opportunities.Nations are spending increasing time in draftingand implementing Migration Policies to attractonly the best talent to its shores. This holds aparadox within itself. Assuming that the globalcommunity is s tressing on GloCalisation(Thinking Globally, acting Locally), it impliesthat its local populace is sufficient to meet itsrequirements. This is where the fallacy lies. Mostdeveloped countries have realised that itsdemographicquotient is not sufficient to meet itsrequirements in all spheresof life, be it business,academia, media or social welfare. Hence inessence, developed nations need a globalworkforceto act local.

Work-Life Balance

“History bears evidence to the fact tha tlarge number of Indians migratedoverseas in search of better opportunitiesand living prospects, and conversely dueto lesser opportunities in India. But oncloser observation the reasons may not bepurely those mentioned above. It couldsimply be a supply-demand equation.”

The rapid growth in the labour force in lessdeveloped countries (such as India) compared tothat of the more developed countries is aninteresting figure. While the labour force inmore developed countries is projected to remainat about 600 million until 2050, the labour forcein less developed countries is expected to growfrom 2.4 billion in 2005 to 3 billion in 2020 andto 3.6 billion in 2040.

When did you reverse migrate and why?

2008 - 2011(Post recession)

Standard of living 68%Entrepreneurship opportunities 54%Native place 42%Opportunities in EPC 38%

Entrepreneurship opportunities 68%Business culture 54%Opportunities in EPC 28%Native place 24%

Better infrastructure 58%Opportunities in EPC 64%Industrial development 38%

Native place 68%Opportunities in EPC 44%

Opportunities in Engineering 58%

Native place 17%

Better Education 9%

Job opportunities 58%

Native place 17%

Native place 17%

Better opportunities 9%

Karnataka 88% Gujarat 72%

Maharashtra 66% Kerala 65%

Andhra Pradesh 58%Delhi 55%

Punjab 48%

Which Indian state do they want to live in?

This means tha t even after factoring in the rate ofgrowth of developing nations and the s tagnanteconomies of the developed countries, theamount of manpower required for the developedcountries from developing countries willcontinue to grow, i.e the traditional flow of

migration will continue. Actually, carefullymanaged migration is a powerful tool foreconomic growth in destination countries, andfor income generation and development inpoorer origin countries.

4

The term “Brain Drain” is a modern phraseconnotingan age old phenomenon. The migrationof skilled labour from less developed nations(regions) to more developed nations (regions) hasbeen taking place for centuries. It is wrong topresume that brain drain adversely affects theparent country or incrementally benefits thedestination country. In a more politically correcttone, the term “Globalisationof human resource”meansand implies the same phenomenon.

bank of 1980s – 1990s, and subsequently to braingain in the 21st century. Similarly, the labourmigrants to the Gulf have been viewed as the mainsource of remittances, swelling India’s foreignexchangereserves.

To look at it broadly, the migration trends of the20th century from India can be broken into 3broadcategories:

Migration from India - Historical Perspective

Latin America & Carribean

6% Canada6%

USA14%

UK9%

Other Europe4%East Africa

1%South Africa7%

Mauritius & Reunion

6%

Gulf21%

Asia Pacific4%

Singapore9%

Malaysia13%

Figure 1: Regional Distribution of Indian diaspora

1980s uptil 2000- Surge in undergraduatecourses,more cross border job transfers and directrecruitment for migrants moving to the west.Significant increase towards the Middle East forthe Oil & Gassectors.

Uptil 1950s – Wealthy youth, moving mostly tothe UK and US for further studies in Medicine,Lawor Applied Sciences

1960s uptil 1980s- Sproutin numbersmoving forhigher education in varied fields but still mostlylinked with sciences. Saw a new phenomenon-movementto the Gulf regions for Oil

An estimated 20–25 million stock of Indianmigrants is recordedworld–wide. This is a functionof flows of professionals from India over last twocenturies. Beginning in 1950s, and picking up asbrain drain in 1960s, skilled migration todeveloped countries became more prominentwiththe recent 21st–century exodus of the IT workers.Beginning with the oil–boom of the 1970s, largenumbers of semi–skilled Indian labour havemigrated to Gulf countries in West Asia.Professionals leaving India took place in phases –fromthe brain drainof 1960’s – 1970’s; to brain

5

Global Trends

The total population of international migrants in2010 is about 214 million. India ranks at no. 9 asthe country with the maximum number offoreign born nationals in its population.Interestingly, the destination of choice for Indianmigrants – the USA ranks no. 1 with close to 45million foreign born nationals Adding further toour hypothesis that migration also in fact assistsin development of the source country, Figure 3

illustrates the fact that India is the world’s highestremittance receiver with close to USD 50 billionin inward remittances.

This statistic is interesting in furtherunderstanding two aspects about the majority ofIndian workers. One is, it is clear that Indiansmigrate in large numbers in search of betterworkingconditions. And secondly, Indians have

43

12

11

8

8

7

6

6

5

5

USA

Russian …

Germany

Saudi Arabia

Canada

France

United …

Spain

India

Ukraine

Figure 2: Countries with largest foreign-born population in 2010(in millions)

Source : UN DESA,2010

very strong family ties andusually save to send monieshome to family andrelatives. But lately, thetrend in migration andremittances is slowing downwith respect to India. Thereasons behind this and itsimplications could changethe working demographicsof the world drastically.

6

Mrs. Dilnawaz Mahanti–Ex- Consultant, International Labour Organisation

What according to you is the future of reversemigration in India?It’s hard to say but I presume that due to theglobal economic contraction as well as globalorganisations looking at India from a key marketpoint of view, we will not be wrong to say thatmore and more Indians based overseas wouldwant to return to India.

What types of outward-migratory trends havebeen historically associated with India?Indians primarily have moved abroad in threegeographic clusters- USA and Canada; UK; andMiddle East. These trends have changedsomewhat over the last decade with newgeographies such as Australia and NZ; WesternEurope (Germany, Belgium, France) and partsof Africa also attracting in-flow of Indianworkers.

How has the trend of reverse migration impactedthe global migration patterns?Reverse migration was always a phenomenon,albeit a very miniscule number to pay muchattention to. Most professionals from SouthIndia in the Oil & Gas sector in the Middle Eastwent with the sole objective of earning quicklybut always with the intention of returning toIndia. This was quite unique to the Middle Eastitself. Because usually other professionals goingto USA & Canada, as well as the UK went mostlyfor a better life and in the hope of settling therepermanently. These professionals wereemployed primarily in the EPC industry.But now, reverse migration has ceased to be justa phenomenon relevant to a particular workerprofile or geography. It is an increasing trend

What initiatives should government take in orderto continue this momentum?Play a regulatory role in the return andreintegration process, with regard to employmentopportunities, working and living conditions,remuneration at par with the previous country,etc.

What barriers do you see in the growth ofreverse migration?Unfriendly labour policies and practices, lack ofsocial protection, difference in ‘quality of life’ etc.Though this “difference” in quality-of-life isreducing gradually at least in Tier- I Indian cities

across skill sets, geographies and sectors. A lot ofpeople from sectors such as engineering, IT,banking are returning to India, as also the usualnumbers from Oil & Gas.

The west is seeing a slowdown in its economicsystem. The fact that the west no longer has thelargest markets and the fact that it’s workingpopulation is increasing but at a decreasing rate isaffecting the economics of the trade. India isdeveloping at a rapid rate, with its GDP set to be

Reverse Migration to India : from brain drain to brain gain

the world’s 3rd largest by the middle of thiscentury . Such frenetic growth obviously needs anincremental shift in the labour force available inthe country. India has been blessed with ademographic dividend that other countrieswould be envious of.

7

Global Trends

The total population of international migrants in2010 is about 214 million. India ranks at no. 9 asthe country with the maximum number offoreign born nationals in its population.Interestingly, the destination of choice for Indianmigrants – the USA ranks no. 1 with close to 45million foreign born nationals Adding further toour hypothesis that migration also in fact assistsin development of the source country, Figure 3

illustrates the fact that India is the world’s highestremittance receiver with close to USD 50 billionin inward remittances.

This statistic is interesting in furtherunderstanding two aspects about the majority ofIndian workers. One is, it is clear that Indiansmigrate in large numbers in search of betterworkingconditions. And secondly, Indians have

43

12

11

8

8

7

6

6

5

5

USA

Russian …

Germany

Saudi Arabia

Canada

France

United …

Spain

India

Ukraine

Figure 2: Countries with largest foreign-born population in 2010(in millions)

Source : UN DESA,2010

very strong family ties andusually save to send monieshome to family andrelatives. But lately, thetrend in migration andremittances is slowing downwith respect to India. Thereasons behind this and itsimplications could changethe working demographicsof the world drastically.

6

Mrs. Dilnawaz Mahanti–Ex- Consultant, International Labour Organisation

What according to you is the future of reversemigration in India?It’s hard to say but I presume that due to theglobal economic contraction as well as globalorganisations looking at India from a key marketpoint of view, we will not be wrong to say thatmore and more Indians based overseas wouldwant to return to India.

What types of outward-migratory trends havebeen historically associated with India?Indians primarily have moved abroad in threegeographic clusters- USA and Canada; UK; andMiddle East. These trends have changedsomewhat over the last decade with newgeographies such as Australia and NZ; WesternEurope (Germany, Belgium, France) and partsof Africa also attracting in-flow of Indianworkers.

How has the trend of reverse migration impactedthe global migration patterns?Reverse migration was always a phenomenon,albeit a very miniscule number to pay muchattention to. Most professionals from SouthIndia in the Oil & Gas sector in the Middle Eastwent with the sole objective of earning quicklybut always with the intention of returning toIndia. This was quite unique to the Middle Eastitself. Because usually other professionals goingto USA & Canada, as well as the UK went mostlyfor a better life and in the hope of settling therepermanently. These professionals wereemployed primarily in the EPC industry.But now, reverse migration has ceased to be justa phenomenon relevant to a particular workerprofile or geography. It is an increasing trend

What initiatives should government take in orderto continue this momentum?Play a regulatory role in the return andreintegration process, with regard to employmentopportunities, working and living conditions,remuneration at par with the previous country,etc.

What barriers do you see in the growth ofreverse migration?Unfriendly labour policies and practices, lack ofsocial protection, difference in ‘quality of life’ etc.Though this “difference” in quality-of-life isreducing gradually at least in Tier- I Indian cities

across skill sets, geographies and sectors. A lot ofpeople from sectors such as engineering, IT,banking are returning to India, as also the usualnumbers from Oil & Gas.

The west is seeing a slowdown in its economicsystem. The fact that the west no longer has thelargest markets and the fact that it’s workingpopulation is increasing but at a decreasing rate isaffecting the economics of the trade. India isdeveloping at a rapid rate, with its GDP set to be

Reverse Migration to India : from brain drain to brain gain

the world’s 3rd largest by the middle of thiscentury . Such frenetic growth obviously needs anincremental shift in the labour force available inthe country. India has been blessed with ademographic dividend that other countrieswould be envious of.

7

55.0

51.0

22.6

21.3

15.9

11.6

11.1

10.4

10.2

10.0

India

China

Mexico

Philippin…

France

Germany

Banglad…

Belgium

Spain

NigeriaSource: World Bank

Figure 3 : Top 10 remittance receivers in 2010 (In USD billion)

It is validated that India does and will continue tohave the largest working population globally. Butwhat will be interesting for us to examine is howmany of these highly skilled and sought after

professionals actually prefer to move back toIndia because of the changing global workspacelandscape.

8

Pre 1980

Our Research of respondents who movedoverseas but decided to come back and work inIndia throws up some interesting insights. Of the28 percent of respondents who moved overseasbefore 1980, 47 percent went due for highereducation. 68 percent of these numbers movedto the US, and a majority of these were inEngineering disciplines. But what is interesting tonote is that only 5 percent of these respondentsmoved back to India.

“Canada was developing fast in the early‘80s. And a lot of Indians were migratingthere increasing the diaspora and therebymaking the work-life balance easy to getaccustomed to.”

---- Gundeep Araichm o ved to Canada in 1978 to do hi s masters i n mechani cal engineerin g. moved

b ack to In di a in 2009 to set up a smal l farmin g bu siness i n h is n ati ve state of Pu n j ab .Hi s m ain d ri vin g mo ti ve was to retu rn to h is n ati ve p l ace

“India was still recovering from the after-effects of the Emergency years. Theworkforce morale was low, the futurelooked uncertain and a lot of my peerswere moving to greener pastures abroad”.

“The US in those days was gallopingahead in a wide range of industries. ThePetroleum industry was peaking in the USback then, with almost 8.7 million barrelsof oil produced per day as compared toonly about 5.6 million barrels a daytoday”

---- Sujit Biswas, moved to the US in 1976 after completing his BTech degree

from IIT

Infact, 57 percent of the respondents who cameback to India after moving overseas before 1980,had “Returning to Native place” as their keyreason for coming back to India. Another 33percent preferred coming back to India having

having moved overseas before 1980, as they felt itwas a good time to start a business of their own.Almost an equal split in these numbers arelocated in the states of Punjab and AndhraPradesh. Another interesting fact is that most ofthe respondents who moved out of India before1980 were employed mostly in the engineeringdomain.

9

“They were willing topay us what thecompanies in Indiawouldn’t even think ofpaying us. I t really wasn’ta very tough decision tomake”

Gen Y (18-29), 34%

Gen X (30-49), 65%

Baby Boomers (50-65), 1%

---- AnirudhSinghalspent almost 30 years in the US working for a top Automobile company before moving back to India in 2001

What is equally important to note is that a lot ofIndians before 1980 moved to the US foracademic reasons as well. Almost 47% of therespondents we surveyed who had moved before1980 had done so for this purpose. And almost77% of these respondents had moved for post-graduate studies mostly in Engineering. Thebalance was split between Medicine, Law andArts in that order. US universities during thisperiod were very receptive of the quality ofIndian under-graduate education and were alsoacutely aware of the benefits that would accruefrom these students for the US academia andindustry.

Visa rules were supportive of this movement aswell. Thus a majority of the respondents whomigrated during this period cited a combinationof better remuneration and growth opportunitiesfor this move.

Factor in the lucrative stipends and scholarshipsextended by US universities and it is easy tounderstand why so many Indians moved duringthat time. To look at the other geographiclocation for mass movement of Indians, one hasto go no further than a few nautical miles west of

“At a time when we didn’t know whatwould happen in India over the next 6months, we were very clear of how theeconomy and the job market wouldshape up in the US for atleast 5-10years”

---- Umesh Aggarwalmoved to the US in 1978 to pursue his PhD in

Petroleum Engineering

Mumbai – the Middle East . Though Oil wasdiscovered in the Gulf in the 1930 s, thenumber of Indians in the region wasconsiderably small and grew gradually fromabout 1,400 in 1948 to 40,000 in the early1970 s. This was to see a sudden burst ofincrease in volumes over the next few years .There is also a geo-political angle to this entirestory . During the years 1977 -1981 , the USmade a conscious effort to stop further largescale exploration of Oil & Gas in its ownterritory and started depending majorly on theGulf . Having increasingly thwarted the abilityof the U.S. to access its own vast reserves ofoil, successive administrations burdenedAmericans with billions more in costs at thegas pump . This led to a huge increase indemand of Gulf Oil thereby directly impactingthe migration trends to this region . By 1979 ,the stock of Indian migrant population to theGulf countries had swelled to 257 ,655 , butthese were still early days as the numberswould keep increasing drastically.

Figure 4 : Age decomposition of reverse migrants(Pre 1980)

As the domestic Oil industry in the US was a keysource of recruitment back in the pre-1980 era, ithas since continued to decline and this trendshares a direct correlation with the surge of thesame industry in the Middle East. But we willcome to this a little later.

Looking at some of the other industry drivers ofthe pre-1980 years in the US were heavyindustries such as Cement and Engineering. TheAuto giants at Detroit were yet to bear the bruntof the Japanese attack, and in general theeconomic outlook looked very bright.

10

<3 years38%

3-5 years32%

5-10 years21%

>10 years9%

How many years did you spend in your last overseas

job?

<3 years21%

3-5 years16%

5-10 years28%

>10 years35%

Internal job transfer 33%Higher studies 60%

Better opportunities 57%Higher studies 30%Job transfer 12%

Higher studies 61%Job transfer 10%Parents shifted 3%

Higher studies 47%Better opportunities 33%

2008-2011(Post Recession) 8%

2000-2008(Pre Recession) 26%

1980-1999 38%

Pre 1980 28%

How many years were you based

overseas?

Overseas 52%High remuneration 48%Growth opportunities 10%Work-life balance 20%Better working culture 12%

India 48%Work-life balance 9%Growth opportunities 55%

Better working culture 20%High remuneration 16%

Job Satisfaction

Key reason to move overseas

Key Findings of the Survey

11

“They were willing topay us what thecompanies in Indiawouldn’t even think ofpaying us. I t really wasn’ta very tough decision tomake”

Gen Y (18-29), 34%

Gen X (30-49), 65%

Baby Boomers (50-65), 1%

---- AnirudhSinghalspent almost 30 years in the US working for a top Automobile company before moving back to India in 2001

What is equally important to note is that a lot ofIndians before 1980 moved to the US foracademic reasons as well. Almost 47% of therespondents we surveyed who had moved before1980 had done so for this purpose. And almost77% of these respondents had moved for post-graduate studies mostly in Engineering. Thebalance was split between Medicine, Law andArts in that order. US universities during thisperiod were very receptive of the quality ofIndian under-graduate education and were alsoacutely aware of the benefits that would accruefrom these students for the US academia andindustry.

Visa rules were supportive of this movement aswell. Thus a majority of the respondents whomigrated during this period cited a combinationof better remuneration and growth opportunitiesfor this move.

Factor in the lucrative stipends and scholarshipsextended by US universities and it is easy tounderstand why so many Indians moved duringthat time. To look at the other geographiclocation for mass movement of Indians, one hasto go no further than a few nautical miles west of

“At a time when we didn’t know whatwould happen in India over the next 6months, we were very clear of how theeconomy and the job market wouldshape up in the US for atleast 5-10years”

---- Umesh Aggarwalmoved to the US in 1978 to pursue his PhD in

Petroleum Engineering

Mumbai – the Middle East . Though Oil wasdiscovered in the Gulf in the 1930 s, thenumber of Indians in the region wasconsiderably small and grew gradually fromabout 1,400 in 1948 to 40,000 in the early1970 s. This was to see a sudden burst ofincrease in volumes over the next few years .There is also a geo-political angle to this entirestory . During the years 1977 -1981 , the USmade a conscious effort to stop further largescale exploration of Oil & Gas in its ownterritory and started depending majorly on theGulf . Having increasingly thwarted the abilityof the U.S. to access its own vast reserves ofoil, successive administrations burdenedAmericans with billions more in costs at thegas pump . This led to a huge increase indemand of Gulf Oil thereby directly impactingthe migration trends to this region . By 1979 ,the stock of Indian migrant population to theGulf countries had swelled to 257 ,655 , butthese were still early days as the numberswould keep increasing drastically.

Figure 4 : Age decomposition of reverse migrants(Pre 1980)

As the domestic Oil industry in the US was a keysource of recruitment back in the pre-1980 era, ithas since continued to decline and this trendshares a direct correlation with the surge of thesame industry in the Middle East. But we willcome to this a little later.

Looking at some of the other industry drivers ofthe pre-1980 years in the US were heavyindustries such as Cement and Engineering. TheAuto giants at Detroit were yet to bear the bruntof the Japanese attack, and in general theeconomic outlook looked very bright.

10

<3 years38%

3-5 years32%

5-10 years21%

>10 years9%

How many years did you spend in your last overseas

job?

<3 years21%

3-5 years16%

5-10 years28%

>10 years35%

Internal job transfer 33%Higher studies 60%

Better opportunities 57%Higher studies 30%Job transfer 12%

Higher studies 61%Job transfer 10%Parents shifted 3%

Higher studies 47%Better opportunities 33%

2008-2011(Post Recession) 8%

2000-2008(Pre Recession) 26%

1980-1999 38%

Pre 1980 28%

How many years were you based

overseas?

Overseas 52%High remuneration 48%Growth opportunities 10%Work-life balance 20%Better working culture 12%

India 48%Work-life balance 9%Growth opportunities 55%

Better working culture 20%High remuneration 16%

Job Satisfaction

Key reason to move overseas

Key Findings of the Survey

11

migrants in the Gulf were comprised of semi-skilled and un-skilled workers. By 1991, 1.4million Indians worked and lived in the GCCCountries, a majority of these from the Southernstates. An overwhelming 90% of the Indiansworking in the GCC were either employed in Oil& Gas or the EPC industry. The remaining weremostly in Banking and Financial services. TheGCC countries had drastically reduced work visarequirements in the early 1980s directlyimpacting this large increase.

All this though was soon to change after theeconomic reforms in India in 1991-1992. Withthe opening up of the Indian economy, FIIs andMNCs started to trickle into India. Though theGulf still attracted a lot of workers to its shores,there was a slight increase in Indians in the USand Europe coming back to India .

As the last decade of the 20th century ushered ina new government in India, the world wasmoving rapidly - adopting new technologies andideas. This period saw an increase in the numberof Indians moving to the Gulf as compared toany other region. Most migrants hailed from theSouthern states of Kerala, Tamil Nadu,Karnataka and Andhra Pradesh.

.

38% of our respondents stated this period as thetime they moved abroad. Though a vast majority(61%) moved for further studies, at the sametime almost 58% of the remaining workingmigrant population moved to the Gulf regions.Indian migrant workers in the GCC countriescater to all three categories of labour. The highlyskilled and technically trained professionalsremain in great demand in the governmentdepartments and the public sector enterprises.

They are also allowed to bring in their familiesand children. However, about 70% of the Indian

Years 1980-1999 – The Gulf Years

“My engineering degree helped meland a managerial job in the UAE butmost of my learning was on-the job as Idid not have prior experience in Oil &Gas”.

M. Ananth, an engineer from Mysore who moved

to the UAE in 1986 to work for an Oil company

Country 1983 1987 1991

S Arabia 2,70,000 3,80,000 6,00,000

UAE 2,50,000 2,25,000 4,00,000

Oman 1,00,000 1,84,000 2,20,000

Kuwait 1,15,000 1,00,000 88,000

Qatar 40,000 50,000 75,000

Bahrain 30,000 77,000 1,00,000

Total 8,05,000 10,16,000 14,83,000

Indian Population in the Gulf

Source: Rahman (1999)

12

these words are important as they imply thatmost people moving abroad are mainly doingso because of the void in their native land .This hypothesis is an interesting one, and theevents of the next decade go a long way insupporting it. Even with the burgeoning

numbers moving to the Middle East, there wasa significant number of Indians returningduring this period . Though it is tough toascertain the

The above statement by Mr. Anirban Basuclearly indicates that there is a latent desire in allmigrants to come back to their native land only ifthe macro-conditions are similar. The factors thatusually influence the outward movement ofworkforce are:

Gen Y (18-29)39%

Gen X (30-49)48%

Baby Boomers (50-65)

13%

Figure 5: Age Disposition of Reverse Migrants (1980-1999)

Higher remuneration Better growth opportunities Improved standard of living Better working culture Image/perception related

reasons

Better work-life balance

62 percent of the 38 percent of workingprofessionals who moved overseas during thistime cited better work -life balance, and higherremuneration as the key factors affecting theirdecision making process. On a more sociologicallevel,

13

split between the numbers movingback to India between 1980-1999, it is a safeassumption that the majority will be tilted to theperiod after the liberalisation in 1991-1992.30 percent of respondents who moved back inthisperiod cited “To be part of the Indiangrowth story” as the key reason for making

the decision .

the rate of job creation in Indiahas increased manifold, creating new jobs

and opportunities.

With the entry of priva tisedglobal corporations,the working culture has also

evolved. 18percentof the respondents who moved

back inthis

period also validated better jobculture as

one ofthe reasons influencing their

decision to move back .

Since 1992

migrants in the Gulf were comprised of semi-skilled and un-skilled workers. By 1991, 1.4million Indians worked and lived in the GCCCountries, a majority of these from the Southernstates. An overwhelming 90% of the Indiansworking in the GCC were either employed in Oil& Gas or the EPC industry. The remaining weremostly in Banking and Financial services. TheGCC countries had drastically reduced work visarequirements in the early 1980s directlyimpacting this large increase.

All this though was soon to change after theeconomic reforms in India in 1991-1992. Withthe opening up of the Indian economy, FIIs andMNCs started to trickle into India. Though theGulf still attracted a lot of workers to its shores,there was a slight increase in Indians in the USand Europe coming back to India .

As the last decade of the 20th century ushered ina new government in India, the world wasmoving rapidly - adopting new technologies andideas. This period saw an increase in the numberof Indians moving to the Gulf as compared toany other region. Most migrants hailed from theSouthern states of Kerala, Tamil Nadu,Karnataka and Andhra Pradesh.

.

38% of our respondents stated this period as thetime they moved abroad. Though a vast majority(61%) moved for further studies, at the sametime almost 58% of the remaining workingmigrant population moved to the Gulf regions.Indian migrant workers in the GCC countriescater to all three categories of labour. The highlyskilled and technically trained professionalsremain in great demand in the governmentdepartments and the public sector enterprises.

They are also allowed to bring in their familiesand children. However, about 70% of the Indian

Years 1980-1999 – The Gulf Years

“My engineering degree helped meland a managerial job in the UAE butmost of my learning was on-the job as Idid not have prior experience in Oil &Gas”.

M. Ananth, an engineer from Mysore who moved

to the UAE in 1986 to work for an Oil company

Country 1983 1987 1991

S Arabia 2,70,000 3,80,000 6,00,000

UAE 2,50,000 2,25,000 4,00,000

Oman 1,00,000 1,84,000 2,20,000

Kuwait 1,15,000 1,00,000 88,000

Qatar 40,000 50,000 75,000

Bahrain 30,000 77,000 1,00,000

Total 8,05,000 10,16,000 14,83,000

Indian Population in the Gulf

Source: Rahman (1999)

12

these words are important as they imply thatmost people moving abroad are mainly doingso because of the void in their native land .This hypothesis is an interesting one, and theevents of the next decade go a long way insupporting it. Even with the burgeoning

numbers moving to the Middle East, there wasa significant number of Indians returningduring this period . Though it is tough toascertain the

The above statement by Mr. Anirban Basuclearly indicates that there is a latent desire in allmigrants to come back to their native land only ifthe macro-conditions are similar. The factors thatusually influence the outward movement ofworkforce are:

Gen Y (18-29)39%

Gen X (30-49)48%

Baby Boomers (50-65)

13%

Figure 5: Age Disposition of Reverse Migrants (1980-1999)

Higher remuneration Better growth opportunities Improved standard of living Better working culture Image/perception related

reasons

Better work-life balance

62 percent of the 38 percent of workingprofessionals who moved overseas during thistime cited better work -life balance, and higherremuneration as the key factors affecting theirdecision making process. On a more sociologicallevel,

13

split between the numbers movingback to India between 1980-1999, it is a safeassumption that the majority will be tilted to theperiod after the liberalisation in 1991-1992.30 percent of respondents who moved back inthisperiod cited “To be part of the Indiangrowth story” as the key reason for making

the decision .

the rate of job creation in Indiahas increased manifold, creating new jobs

and opportunities.

With the entry of priva tisedglobal corporations,the working culture has also

evolved. 18percentof the respondents who moved

back inthis

period also validated better jobculture as

one ofthe reasons influencing their

decision to move back .

Since 1992

The new century started with an incredibleincrease in outward migration from India. Mostlymigration still centred around the Americas,GCC and Western Europe, but this period alsosaw the birth of a new movement of professionalsmoving to Australia. The Australian economywhich had a real GDP of USD 600 billion in2000, had grown to USD 1.2 trillion by 2010.The historic drivers of the Australian economynamely the Service industry and Agriculture sawa slight reduction in growth as compared to theIndustrial sector. Cement, Gas, Mining and Steelindustries attracted manpower from across theglobe. At the other end of the world, Indianmigration to the US saw a new trend – moreinternal job transfers. As the Indian economyopened up and attracted heavy inwardmovement of MNCs, intra-organisationalboundaries started reducing. Deserving

employees were sent overseas to companyHeadquarters, R&D installations, setting upnew markets etc . The Western economy rightthrough the early 2000 s grew rapidly,especially the US.

By 2006 , 1.5 million people of Indian originwere based in the US, forming the 4th largestcommunity after Mexico, Philippines andChina . Almost 80 percent of the total Indianmigrant population to the developed countrieswas in the US. The well–known non-immigrant H1–B visa category, with an annualcap of 65,000 visas per year worldwide, the USSenate had to clear a bill for a limitedexpansion of these visas to 337 ,500 for the

Years 2000 - 2008 - From Y2K to GFC

15

Where are you based currently, what were yourreasons to choosing this location and how do yousee growth opportunities in your current job andIndia as a whole?I am currently in Gujarat working for a largeIndian Oil & Gas company. I feel Oil and Gas isthe Sector which ultimately drives the growth of acountry. All Industrial growth is a direct variantof Oil and Gas Availability a t reasonable prices.Hence this sector will undoubtedly grow.India will continue to grow, as during myinteractions with my former colleagues in UAE, Iconstantly hear how the salary levels have beenthe same for the last year, but here in India, mostof my peers have all enjoyed 15-20% salaryhikes.

Mr. Munish Kohli, - working in the Oil & Gas sector for more than 12 years.

When did you leave India and for what reasons?I moved to the UAE in 2004 to work in the Oil& Gas industry. The primary reason for memoving was due to the better remunerationthere.

Was that the only decisive factor or were thereother reasons as well?It was the primary reason. Though I had heardthat the standard of living was way better thanIndia.

What were the changes you witnessed once youmoved to the UAE as compared to here inIndia? Both in terms of your job as well as life ingeneral?See when I moved there initially, what struck meforemost is that the standard of living is muchbetter. The infra-structure of the cities is better,in terms of basic amenities, in terms of options ofentertainment and leisure – all in all it was waybetter than I was used to living in Mumbai beforeI left.From a work point of view, there were no taxesthat needed to be paid. I was living in a betterstate than previously, enjoying life after work, andstill managed to save sufficient amounts of mysalaryevery month.

within the organisation and the industry itselfwere stagnating. My peers were all facing thesame issues. The life was still very comfortablebut the job was not giving me much comfortfrom a long term point of view. Also the news ofIndia’s growth story was the talk of town, so tosay. We started hearing how jobs in India nowpaid better, infrastructure in certain states wasimproving rapidly and the growth opportunitiesin these jobs was way better than the MiddleEast. At the end of the day, not only does aprofessional want to make money but also haveaspirations in rising to a Leadership role. Thiswas absolutely not possible in the UAE.

Growth opportunities in India - way better than the Middle East ‘

When and why did you start thinking aboutmoving back to India?After living in the UAE for over 3 years, I startedrealising that growth opportunities

14

The new century started with an incredibleincrease in outward migration from India. Mostlymigration still centred around the Americas,GCC and Western Europe, but this period alsosaw the birth of a new movement of professionalsmoving to Australia. The Australian economywhich had a real GDP of USD 600 billion in2000, had grown to USD 1.2 trillion by 2010.The historic drivers of the Australian economynamely the Service industry and Agriculture sawa slight reduction in growth as compared to theIndustrial sector. Cement, Gas, Mining and Steelindustries attracted manpower from across theglobe. At the other end of the world, Indianmigration to the US saw a new trend – moreinternal job transfers. As the Indian economyopened up and attracted heavy inwardmovement of MNCs, intra-organisationalboundaries started reducing. Deserving

employees were sent overseas to companyHeadquarters, R&D installations, setting upnew markets etc . The Western economy rightthrough the early 2000 s grew rapidly,especially the US.

By 2006 , 1.5 million people of Indian originwere based in the US, forming the 4th largestcommunity after Mexico, Philippines andChina . Almost 80 percent of the total Indianmigrant population to the developed countrieswas in the US. The well–known non-immigrant H1–B visa category, with an annualcap of 65,000 visas per year worldwide, the USSenate had to clear a bill for a limitedexpansion of these visas to 337 ,500 for the

Years 2000 - 2008 - From Y2K to GFC

15

Where are you based currently, what were yourreasons to choosing this location and how do yousee growth opportunities in your current job andIndia as a whole?I am currently in Gujarat working for a largeIndian Oil & Gas company. I feel Oil and Gas isthe Sector which ultimately drives the growth of acountry. All Industrial growth is a direct variantof Oil and Gas Availability a t reasonable prices.Hence this sector will undoubtedly grow.India will continue to grow, as during myinteractions with my former colleagues in UAE, Iconstantly hear how the salary levels have beenthe same for the last year, but here in India, mostof my peers have all enjoyed 15-20% salaryhikes.

Mr. Munish Kohli, - working in the Oil & Gas sector for more than 12 years.

When did you leave India and for what reasons?I moved to the UAE in 2004 to work in the Oil& Gas industry. The primary reason for memoving was due to the better remunerationthere.

Was that the only decisive factor or were thereother reasons as well?It was the primary reason. Though I had heardthat the standard of living was way better thanIndia.

What were the changes you witnessed once youmoved to the UAE as compared to here inIndia? Both in terms of your job as well as life ingeneral?See when I moved there initially, what struck meforemost is that the standard of living is muchbetter. The infra-structure of the cities is better,in terms of basic amenities, in terms of options ofentertainment and leisure – all in all it was waybetter than I was used to living in Mumbai beforeI left.From a work point of view, there were no taxesthat needed to be paid. I was living in a betterstate than previously, enjoying life after work, andstill managed to save sufficient amounts of mysalaryevery month.

within the organisation and the industry itselfwere stagnating. My peers were all facing thesame issues. The life was still very comfortablebut the job was not giving me much comfortfrom a long term point of view. Also the news ofIndia’s growth story was the talk of town, so tosay. We started hearing how jobs in India nowpaid better, infrastructure in certain states wasimproving rapidly and the growth opportunitiesin these jobs was way better than the MiddleEast. At the end of the day, not only does aprofessional want to make money but also haveaspirations in rising to a Leadership role. Thiswas absolutely not possible in the UAE.

Growth opportunities in India - way better than the Middle East ‘

When and why did you start thinking aboutmoving back to India?After living in the UAE for over 3 years, I startedrealising that growth opportunities

14

three-year period from 1999 to 2001. This wasbecause the US had faced a decline in keyundergraduate science degrees, an acute shortageof staff in high technology industries like softwaredevelopment, and exhaustion of the worldwideannual quota of H–1B visas too quickly in 1998,with 42 per cent (or two out of every five visas)being issued to Indian IT software professionals.

After 2001, when the number of H–1B visasissued to Indians went down because theAmerican immigration scenario came to bedetermined more by the post–9/11 securityconcern in the U.S and the subsequent recession

Gen Y (18-29)38%

Gen X (30-49)44%

Baby Boomers (50-65)

18%

Figure 6 : Age Disposition of Reverse Migrants (2000-2008)

The UK though continuedto be the European hub ofmigration in the Oil & Gassectors with British Oilcompanies being asignificant recruiter in thisperiod.

that burst the IT bubble than by its actual labourmarket needs, the U.S. government has beenunder continuous pressure of different lobby andbusiness to increase the H1–B visa limit onceagain. Of the 4 states in the US with the largestIndian population (California, New York, NewJersey and Texas) – California and Texas hasthriving Construction and Engineering industries.

On the other hand , migration of Indians toEuropean nations was more or less stagnant. Anestimated 24% of Indians working in the EasternEuropean and parts of Western Europe in theEPC industry are low wage workers.

16

Where are you based currently, what were yourreasons to choosing this location and how do yousee growth opportunities in your current job andIndia as a whole?Just before my work permit for the US expired, Igot an offer from a US based Constructionequipment company which was looking atstarting operations in India. The company waslooking to aggressively pursue the Indian market,as the downside of the US construction industrywas offset by the growth of the Indianconstruction industry. Though I had tocompromise marginally in terms ofremuneration, I think in hindsight it was one ofthe wisest decisions I have made.

The company is doing very well in India now,and I am based in Bangalore and extremelyhappy with both my job and my life. I originallyhail from Punjab, but had no trouble in adjustingto life in Bangalore as it is extremelycosmopolitan and quality of life is excellent. Mytwo kids go to an international school which isarguably better than the school they went to inthe US. All in all, the future looks bright.

Mr. Anirudh Gupta-working in the Construction sector for more than 20 years.

When did you leave India and for what reasons?I left for the US in 1997 to work in theConstruction industry initially for a Constructionequipment manufacturing company and thensubsequently for a Construction firm itself. Theprimary reason for me to leave was for monetarybenefits of working abroad as compared to Indiaback then.

Was that the only decisive factor or were thereother reasons as well?Ofcourse the standard of living was much betterin the US, but if any Indian company could havepaid me the amount I was getting paid in the US,I would have surely chosen to stay back here.

What were the changes you witnessed once youmoved to the US as compared to here in India?Both in terms of your job as well as life ingeneral?Life undoubtedly was better. But at the sametime, it is wrong to view that sta tement inisolation. Many things that we take for granted inIndia such as domestic help, chauffeurs, menialworkers for small household needs etc. isabsolutely missing in the US. Life is morecomfortable in India in that sense.

Please elaborate.I and more than 100 of my organisationscolleagues were given the pink slip in a majorcost cutting move by the management eventhough I was a consistent performer. I spentanother 6 months in the US looking for otherjobs but the situation was very bleak as theeconomy crashed and there were no jobsavailable.

But how satisfied were you with your job?The work was exciting. I t was a pure meritocracyand growth opportunities were excellent. Ishifted from my industry to the clients sidewithout any loss of job responsibilities orremuneration. But the construction industry sawa great slowdown in 2008 after the financial crisis.Many jobs were affected including mine.

Quality of life is now excellent in INDIA‘

17

Where are you based currently, what were yourreasons to choosing this location and how do yousee growth opportunities in your current job andIndia as a whole?Just before my work permit for the US expired, Igot an offer from a US based Constructionequipment company which was looking atstarting operations in India. The company waslooking to aggressively pursue the Indian market,as the downside of the US construction industrywas offset by the growth of the Indianconstruction industry. Though I had tocompromise marginally in terms ofremuneration, I think in hindsight it was one ofthe wisest decisions I have made.

The company is doing very well in India now,and I am based in Bangalore and extremelyhappy with both my job and my life. I originallyhail from Punjab, but had no trouble in adjustingto life in Bangalore as it is extremelycosmopolitan and quality of life is excellent. Mytwo kids go to an international school which isarguably better than the school they went to inthe US. All in all, the future looks bright.

Mr. Anirudh Gupta-working in the Construction sector for more than 20 years.

When did you leave India and for what reasons?I left for the US in 1997 to work in theConstruction industry initially for a Constructionequipment manufacturing company and thensubsequently for a Construction firm itself. Theprimary reason for me to leave was for monetarybenefits of working abroad as compared to Indiaback then.

Was that the only decisive factor or were thereother reasons as well?Ofcourse the standard of living was much betterin the US, but if any Indian company could havepaid me the amount I was getting paid in the US,I would have surely chosen to stay back here.

What were the changes you witnessed once youmoved to the US as compared to here in India?Both in terms of your job as well as life ingeneral?Life undoubtedly was better. But at the sametime, it is wrong to view that sta tement inisolation. Many things that we take for granted inIndia such as domestic help, chauffeurs, menialworkers for small household needs etc. isabsolutely missing in the US. Life is morecomfortable in India in that sense.

Please elaborate.I and more than 100 of my organisationscolleagues were given the pink slip in a majorcost cutting move by the management eventhough I was a consistent performer. I spentanother 6 months in the US looking for otherjobs but the situation was very bleak as theeconomy crashed and there were no jobsavailable.

But how satisfied were you with your job?The work was exciting. I t was a pure meritocracyand growth opportunities were excellent. Ishifted from my industry to the clients sidewithout any loss of job responsibilities orremuneration. But the construction industry sawa great slowdown in 2008 after the financial crisis.Many jobs were affected including mine.

Quality of life is now excellent in INDIA‘

17

The financial crisis of 2008 and the growing economy of Indiacombined to change the landscape of migratory trends inIndia. For example the Cement industry which was a majorsource of employment for Indians in the developedeconomies, took a heavy beating. The cement industry in theUnited Sta tes of America had absorbed a sizable section ofthe available labour force. However, available sta tisticsindicate that employment opportunities in this particularsector have declined over years. In 2009, employment in UScement industry reduced at a rate of 33% in comparison toearly 1980s. Closing down of relatively smaller kilns (due tofinancial constraints) and use of automated machines led to adrop in available employment opportunities. Similarly in theSugar industry in the US, employment in sugar containingproducts (SCPs) industries decreased by more than 30,000jobs between 1997 and 2010 according to the Bureau ofLabour Statistics.

The GFC had a ripple effect on all industries acrossthe globe. Says M Ananth, who was employed in theGCC, “Job security drastically reduced in 2008. We werenot sure till when we could continue with our jobs as manyof our peers and colleagues were asked to quit”.This pheno--menon though was mostly an aberration. 28 percent ofrespondents who came back to India between 2000- 2008cited “to be part of the Indian growth s tory” as the reason formoving back. India was growing rapidly in this period, closelyshadowing the other great Asian powerhouse- China . Therewas holistic growth and job creation in all industries. Globalorganisations in Cement, Automobiles, Oil & Gas startedlooking at India as a key strategic link in both their supplychain as well as their point of sales .

18

Easing of regulatory and export guidelines alsosaw a boost in the Indian sugar industry in thisperiod. Although India is the second largestproducer of sugar (16.3 million ton productionin 2008-09), it ranks 15th in export rankings(0.23 million ton exports in 2008-09). Thegovernment has further agreed to ease exportguidelines, and this sector for certain willcontinue to see a lot of activity. This period sawincredible growth in another Indian sector-Construction. Construction accounts for nearly65 per cent of the total investment ininfrastructure and is expected to be the biggest

beneficiary of the surge in infrastructureinvestment over the next few years.

Investment in construction accounts for nearly11 per cent of India’s Gross Domestic Product(GDP). With the significant investmentopportunities emerging in this industry, a largenumber of international real estate playersentered the country. Currently, foreign directinvestment (FDI) inflows into the sector areestimated to be between €3 billion and €3.50billion.

19

Easing of regulatory and export guidelines alsosaw a boost in the Indian sugar industry in thisperiod. Although India is the second largestproducer of sugar (16.3 million ton productionin 2008-09), it ranks 15th in export rankings(0.23 million ton exports in 2008-09). Thegovernment has further agreed to ease exportguidelines, and this sector for certain willcontinue to see a lot of activity. This period sawincredible growth in another Indian sector-Construction. Construction accounts for nearly65 per cent of the total investment ininfrastructure and is expected to be the biggest

beneficiary of the surge in infrastructureinvestment over the next few years.

Investment in construction accounts for nearly11 per cent of India’s Gross Domestic Product(GDP). With the significant investmentopportunities emerging in this industry, a largenumber of international real estate playersentered the country. Currently, foreign directinvestment (FDI) inflows into the sector areestimated to be between €3 billion and €3.50billion.

19

as well. Like we earlier discussed about MNCsopening offices in India supported by theirIndian workforce across their global offices,there are an equal number of companies hiringforeign returned blue collar workers in relatedindustry sectors.

This is the true acknowledgement of the ReverseMigration phenomenon. When jobs are createdat rate good enough to accommodate bothdomestic as well as India returned professionals,in both white collar and blue collar jobs, it is easyto understand the rate at which professionals arereturning to their native land .

One of the fascinating things in India currently isthe relationship between real GDP andunemployment rates. This implies that mostly asthe economy grew, unemployment rates tendedto reduce and also reduce at the same rate. Theyear 2009 (fig. 7) saw a stark increase inunemployment rates, but this has sincemoderated in 2010. India will continue to createmore jobs than any other emerging nation, andin this scenario, reverse migration factored in, isa favorable situation. With foreign re-turnedprofessionals, both blue-collared and white-collared, there is a concentrated push in boththese labor sub-set driven industries within India

Years 2008 onwards – Advantage India

20

Another interestingphenomenon in employmentoptions for reverse migrantsis the emergence of KPO(Knowledge ProcessOutsourcing) companies.Many large global Consultingfirms have also opened theirResearch Centres in Indiaand most of them havededicated industry practicessuch as Oil & Gas, AlternateEnergy, and Constructionetc. Having the availability ofprofessionals having spenttime in these domainsaround

8.9

7.87.2

6.8

10.7 10.8

8.4

9.2 9

7.4 7.4

10.4

2005 2006 2007 2008 2009 2010

Figure 7 : Real GDP vs. Unemployment

Unemployment Rate Real GDP

around the world is a beneficial situation forKPOs and one of the reasons for their increasingnumbers. Indian KPOs account for almost 70%of global KPO volumes, and the global KPOmarket is expected to grow to USD 17 billion by2013-14 With the rapid strides in socio-economic development in India especially in theurban cities, the difference in the perceivedquality of life factor vis-a-vis India as compared to

the West. The future tends to validate the factthat India will continue to see an increase inreverse migration as the country is slated tobecome one of top 3 economies of the world by2030. Unnamed sources at the Ministry ofIndian Overseas Affairs indicated tha t the growthrate of Indians returning to India could be ashigh as 10% CAGR from the current 70,000Indian nationals returning every year.

21

Another interestingphenomenon in employmentoptions for reverse migrantsis the emergence of KPO(Knowledge ProcessOutsourcing) companies.Many large global Consultingfirms have also opened theirResearch Centres in Indiaand most of them havededicated industry practicessuch as Oil & Gas, AlternateEnergy, and Constructionetc. Having the availability ofprofessionals having spenttime in these domainsaround

8.9

7.87.2

6.8

10.7 10.8

8.4

9.2 9

7.4 7.4

10.4

2005 2006 2007 2008 2009 2010

Figure 7 : Real GDP vs. Unemployment

Unemployment Rate Real GDP

around the world is a beneficial situation forKPOs and one of the reasons for their increasingnumbers. Indian KPOs account for almost 70%of global KPO volumes, and the global KPOmarket is expected to grow to USD 17 billion by2013-14 With the rapid strides in socio-economic development in India especially in theurban cities, the difference in the perceivedquality of life factor vis-a-vis India as compared to

the West. The future tends to validate the factthat India will continue to see an increase inreverse migration as the country is slated tobecome one of top 3 economies of the world by2030. Unnamed sources at the Ministry ofIndian Overseas Affairs indicated tha t the growthrate of Indians returning to India could be ashigh as 10% CAGR from the current 70,000Indian nationals returning every year.

21

22

Though 58 percent of respondents who moved to India within thisperiod indicated tha t the job markets insecurities overseas led them tomake this choice, 34 percent also felt that future opportunities in Indiawas a key factor in influencing their decisions. Job satisfaction amongthese respondents was also very high and 60 percent of them felt thatthere was no significant difference between working overseas ascompared to India.

Gen Y (18-29)42%

Gen X (30-49)42%

Baby Boomers (50-65)

16%

Figure 8 : Age Disposition of Reverse Migrants (2008 onwards)

What is the kind of Research/Consulting workdone by KPOs in India?Possibly all kinds of research work : Feasibilitystudies, market intelligence, customer feedback,competitive in-telligence, manufacturingeconomics, financial analysis, product studies,regional studies. Consulting work is carried outfor all oil majors by various KPOs in India.KPOs also carry out primary and secondaryresearch work for the major consultingcompanies.

What are the usual academic/professionalbackground of consultants in theseorganisations?Engineers, MBAs, Masters in Oil & Gas, Mastersin Science or Technology

Are there Consultants/Researchers in theseorganizations who have had direct experience inworking for Oil & Gas companies globally?Yes, experience in Oil & Gas companies isvalued by the research companies.

What according to you is the future of theseservices in India? And do you see moreprofessionals directly employed in these sectorscoming back to India to join companies workingin Research and Consulting?The future of the KPO industry looks bright inIndia. The availability of highly skilled manpowerat low costs makes it an ideal destination forKPOs. There is definitely a trend ofprofessionals directly employed in the Oil & Gasindustry returning to India to join research andconsulting companies. With the slowdown

Ms. Upshi DharEx-Project Manager, Kline & Co.

Looking forward to India

As India continues to attract increasing numberof reverse migrants, the job market and theeconomy as a whole will see an increase inquality of ancillary services and job culture in atleast urban and semi-urban areas. 62 percent ofour respondents said that job-satisfaction levels inIndia were lower than overseas, but out of the 38percent who indicated that job-satisfaction levelsin India were higher, a whopping 72 percentwere those who returned to India in the last 10years. This proves the fact that the workenvironment in India is in an evolutionary stageand organisations and governments are takingsteps in improving work-life balance. Whenasked about their preferred state in the country,

India has a great history and rich cultural value 4.9

Development in technology and other software services 4.8

India has a strong economy and has ability to compete with other develop countries

3.7

India has a large entrainment industry 3.7India has a world class higher education system(IIT, IIM) that is reconisedglobally.

3.7

Despite diversity of religions, national unity is very strong. 3.7

India has third largest pool of qualified scientist and engineers 3.2

India's growth story implies it still has immense opportunity than western countries.

3.1

4Female education and their sustainable role in development is still not fully recognized

3.2 Lack of basic amenities e.g. Infrastructure transport

3.1 In India tribal, caste , religious discrimination still prevails

Key areas of improvement

in India?

88 percent of respondents felt that Karnatakawould be their state of choice, followed byGujarat. An interesting trend that emerged fromthe respondents was also the fact that“entrepreneurship opportunities” was animportant factor in choosing their preferred statewith entrepreneurship opportunities in Gujaratranking as the most important factor for peoplewanting to move to the s tate. The standard ofliving in Karnataka was the key reason forrespondents to choose the sta te above others,while 58 percent of respondents who preferredDelhi indicated that they key reason for theirchoice was due to better job opportunities in thestate.

What they like about

India?

Top 3 changes in India since

they left.

88%

72%

68%

Better Public infrastructure

Better ancillary services

(education, health care etc)

Greater opportunities in all

spheres of life

23

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

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

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

Conclusion

24

After my masters degree, I was working for a largecorporation in Mumbai. They wanted me and a team toexplore opportunities in Europe and Africa. India all ofa sudden was not only a lucrative market for goods andservices for global companies, but also an excellentmarket for manpower resources.

Siddharth RajputEmployed with British Gas

‘In the decade of 2010-20, India will add 120million people in theworking age-grouplooking foremployment which willmake India’s globalworking population at28%. The nearestcompetitor China, onthe other hand, willadd only 19 millionpeople in the sameperiod contributing 5%of the global workingpopulation.

Subir Gokarn’sEx-Deputy Governor

of Reserve Bank of India(2010)

‘It was hard for me to geta decent job in Indiawhich paid well. Becausethere were no jobs herethat paid well, the optionof considering otherfactors such as family,native place etc. just didnot arise.

Abbas Raza Khan moved from

Kochi to Dubai in 1990

‘The reasons for highly skilledprofessionals migratingabroad is not because thegrass is greener on the otherside, but mainly because thegrass is absolutely dead anddull on this side.

--Arunav Purkayashta, Senior Sociologist.

‘

The major Automobilecompany I was workingfor in Detroit, wanted meto move to India to studythe potential of themarket here. I jumped atthe opportunity.

--Anirban BasuWorked for a large Automobile co. in theUS for 10 years

‘

I moved back to India in 2009 and immediately found ajob with a company in Mumbai who wanting me to workon their Oil exploration facility. The job paid me as muchas I got paid back there

--Anzil Rasheedwho hails from Kerala and spent a decade in the Oil industry in Oman

‘

After my masters degree, I was working for a largecorporation in Mumbai. They wanted me and a team toexplore opportunities in Europe and Africa. India all ofa sudden was not only a lucrative market for goods andservices for global companies, but also an excellentmarket for manpower resources.

Siddharth RajputEmployed with British Gas

‘In the decade of 2010-20, India will add 120million people in theworking age-grouplooking foremployment which willmake India’s globalworking population at28%. The nearestcompetitor China, onthe other hand, willadd only 19 millionpeople in the sameperiod contributing 5%of the global workingpopulation.

Subir Gokarn’sEx-Deputy Governor

of Reserve Bank of India(2010)

‘It was hard for me to geta decent job in Indiawhich paid well. Becausethere were no jobs herethat paid well, the optionof considering otherfactors such as family,native place etc. just didnot arise.

Abbas Raza Khan moved from

Kochi to Dubai in 1990

‘The reasons for highly skilledprofessionals migratingabroad is not because thegrass is greener on the otherside, but mainly because thegrass is absolutely dead anddull on this side.

--Arunav Purkayashta, Senior Sociologist.

‘

The major Automobilecompany I was workingfor in Detroit, wanted meto move to India to studythe potential of themarket here. I jumped atthe opportunity.

--Anirban BasuWorked for a large Automobile co. in theUS for 10 years

‘

I moved back to India in 2009 and immediately found ajob with a company in Mumbai who wanting me to workon their Oil exploration facility. The job paid me as muchas I got paid back there

--Anzil Rasheedwho hails from Kerala and spent a decade in the Oil industry in Oman

‘

Branch Locations

Gurgaon(Corporate Office)Kelly Services India Pvt. Ltd.Unitech Cyber Park, Tower C, 10th FloorSector -39, Gurgaon -122002,HaryanaTel: 91 124 472 6666Fax: 91 124 472 6699Email: info@kellyservices.co.in

BangaloreKelly Services India Pvt. Ltd.Sriram Samanthu Chambers#3287, 12th Main, HAL 2nd stage,IndiranagarBangalore - 560 038Tel: 91 80 4191 1800Fax: 91 80 4191 1899Email: bangalore@kellyservices.co.in

ChennaiKelly Services India Pvt. Ltd.Thulsi' 1st Floor, 79 G.N.Chetty Road, T.NagarChennai - 600 017Tel: 91 44 4290 1800Fax: 91 44 4264 9030Email: chennai@kellyservices.co.in

HyderabadKelly Services India Pvt. Ltd.ANK's Tower.6-3-1086/ARajbhavan Road, SomajigudaHyderabad - 500 082Tel: 91 40 4450 4444Fax: 91 40 4020 4452Email: hyderabad@kellyservices.co.in

KolkataKelly Services India Pvt. Ltd.M.A. Business CentreSuite No.207, 5th FloorPoddar Point, 113, Park StreetKolkata - 700016Tel: 91 33 2217 1595 - 98 Extn -128Fax: 91 33 2217 8932Email: kolkata@kellyservices.co.in

Mumbai Commercial Office201 A / B 2nd floor,Pramukh Plaza,Cardinal Gracious Road,Chakala, Andheri (East)Mumbai 400 099Tel: 91 22 66816900/66960260Fax: 91 22 6696 0277Email: mumbai@kellyservices.co.in

Mumbai Corporate Office304 B “C” Wing 3rd floor,Pramukh Plaza,Cardinal Gracious Road,Chakala, Andheri (East)Mumbai 400 099Tel: 91 22 66816900/66960260Fax: 91 22 6696 0277Email: mumbai@kellyservices.co.in

New DelhiKelly Services India Pvt. Ltd.Building No.9, Community Centre, SaketNew Delhi - 110 017Tel: 91 11 4603 0960Fax: 91 11 4161 8965Email: newdelhi@kellyservices.co.in

PuneKelly Services India Pvt. Ltd.ONYX, 10th Floor, Unit No.100237/3, North Main Road,Koregaon Park Annex,Pune - 411001`Tel: 91 20 6680 5200Fax: 91 20 6609 4164Email: pune@kellyservices.co.in

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