Emerging markets like India and China, known for their vast pool of cheap labour force, are witnessing a role reversal with companies from such countries increasingly hiring in North America and Europe, says a study.
Growth market companies – led by the twin forces of China and India -- are increasingly hiring in North America and Europe, according to the latest IBM Global Chief Human Resource Officer study.
It covered 700 Chief Human Resource Officers and senior executives from 61 countries and 31 industries worldwide.
It found that unlike the traditional pattern of workforce movement – where companies in mature markets seek operational efficiency through headcount growth in emerging economies – investment was moving both ways.
The study pointed out that 45 per cent of companies in India plan to increase headcount in North America and 44 per cent would expand in Western Europe.
Meanwhile, 33 per cent of companies in China plan to increase headcount in North America and 14 per cent would grow in Western Europe.
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The study, "Working Beyond Borders," says that while organisations continue to develop and deploy talent in diverse areas around the globe at an accelerated rate, the rationale behind workforce investment is changing.
"The silver lining of globalisation is that the shift toward expansion will require companies to redirect their workforce to locations that provide the greatest opportunities, not just the lowest costs...," IBM Global Business Services Vice President, Organisation and People Denis Brousseau said.
The study added that even at the height of global recession, 33 per cent of respondents in mature markets -- and 43 per cent in growth markets -- increased investments in leadership development, despite the cost containment initiatives at the time.