India among 'most challenging' destinations for expats: Survey

With a booming global economy driving overseas postings to a record level, India along with its emerging market peers China and Russia has emerged as one of the "most challenging" locations to work for expatriates, a new study shows.

Over two-third of the multinational companies (MNCs) reported an increase in the number of international assignments in 2006, while as much as 65 per cent of the MNCs plan to ramp up their overseas postings this year, according to an annual Global Relocation Trends Survey released today.

The reported increase for 2006 is a record high level in the 12-year history of the survey, published by GMAC Global Relocation Services.

A booming global economy is driving a sharp surge in the number of overseas postings, even as the financial and cultural strains of an international assignment are taking their toll on spouse, children and families, the survey said.

Among other findings, the survey revealed that "China, India and Russia were the primary emerging destinations."

However, these countries have also emerged as "the most challenging locations for expatriates," primarily due to the issues like housing and living costs, immigration challenges, payroll and employment-related concerns.

With the share of total revenue generated from outside of a company's headquartered country rising, the demand for experienced international management talent has never been greater.

This has tilted the balance in favour of expatriates as firms heavily rely on them to fill gaps in critical skills, transferring technology and promote corporate culture, it added.

Nearly two thirds of MNCs intend to send even more employees on foreign assignment this year""the onus is clearly on firms to motivate employees as an increasing number are turning down international assignments, the study pointed out.

The survey, which tracked 180 companies with a worldwide head count of more than 8.4 million people, also noted that 10 per cent of assignments were not completed due to expatriates returning from their assignments prematurely.

Asked to name the principal reasons for early returns from assignments, family concerns (32 per cent) topped the list, followed by accepting a new position within the company (23 per cent), early completion of the assignment (14 per cent), career concerns (6 per cent) and cultural adjustment challenges (4 per cent), GMAC said.

Not only does this make the job of finding suitable candidates one of the most critical business challenges for companies today but also the workers that are willing to relocate. However, women""who form 20 per cent of the expatriates""are found to be more open to the idea of accepting overseas assignments, it noted.

Human resources professionals believe that overseas assignments have a positive effect on employees' careers as 31 per cent of those surveyed said an international assignment leads to faster promotion.

Twenty seven per cent reported that (overseas assignments) makes it easier to switch jobs. Companies also feel that expatriates are attractive recruitment targets because of their international experience, the survey added.