By Globalization PartnersDecember 2020
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Are you considering hiring in India? If so, you are not alone. India remains one of the top global destinations for companies in need of Innovative Technology (IT) talent.
According to the National Association of Software & Services Companies (NASSCOM), many Fortune 500 companies rely on Indian talent to succeed in the current digital era.
How can hiring employees in India benefit your company?
India’s ever-growing talent pool
According to a report by Oxford Economics, 9 out of 10 of developed territories, including North America, Canada, most of Europe, Russia, Japan, and Australia, will face talent deficits in 2021. On the other hand, according to Financial Magazine, countries such as India will have a surplus of college-educated, skilled workers. This surplus comes in the form of 3.1 million students entering the workforce annually.
The Financial Times India states that global corporations are set to hire 200,000 engineers and graduates in 2021. This trend indicates that India will continue to be one of the world’s biggest talent markets and key for talent acquisitions for companies.The Financial Times India states that global corporations are set to hire 200,000 engineers and graduates in 2021. Click To Tweet
India’s 2020 New Education Policy puts an emphasis on technology use and education. This new policy joins the India Digital campaign, as part of the government’s efforts to transform India into a “digitally empowered” society, through the implementation of several measures, such as:
- Availability of high-speed internet
- Seamlessly integrated services across departments and jurisdictions
- Mobile phone and bank account enablement
- Safe and secure cyber space
- Shareable private space on a public cloud
- Universal digital literacy
These strategies are part of the Indian’s government recognition of the nation’s importance and potential as a global technology leader.
Demand for technology
A report by NASSCOM says 79 percent of HR leaders agree that companies will find it challenging to keep up with rapidly evolving technology. These numbers point to a continuity in the growing demand for tech-specialized employees.
According to the India Brand Equity Foundation, India is the leading destination for sourcing tech talent across the world. Indian IT & BPM have set up over 1,000 delivery facilities in around 80 countries. In the next five years, 40 percent of Indian developers will enhance their skills. The IT sector’s export revenue is expected to increase by eight to nine percent per year, reaching US$135-$137 billion.
In order to support the growing demand for tech talent, the Indian Government puts a strong focus on infrastructure. Large investments in infrastructure reached an all-time high of US$14.5 billion in 2019.
India ranked second in the 2019 Agility Emerging Markets Logistics Index, where 48.1 percent of those surveyed say they expect India’s e-commerce market to grow just as fast, or even faster, than China’s.
Cost efficient growth
In India, salaries for web developers are lower in comparison to other Asian countries, Latin America, Africa, and Eastern Europe, where hourly wages for developers are much higher. According to a report by NASSCOM, 79 percent of HR leaders say that companies will find it challenging to keep up with rapidly evolving technology.
Data security measures
In 2019, the Indian government introduced The Personal Data Protection Bill in parliament. While this bill aims to prevent companies from abusing personal data, it also helps protect the data of companies that are hiring in India.
Hiring in India with an Employer of Record
An Employer of Record (EOR) allows companies to hire international employees without the need to set up an entity or deal with any of the red tape involved in registering with local authorities.
The EOR serves as the legal employer, with a locally-compliant entity in place — it takes care of payroll, taxes, benefits, and HR. The most significant advantage of an EOR is that it removes the burden of compliance, freeing you from the worry and logistics that come with understanding and navigating a new country’s laws.
Having the right tools to hire internationally is the key to being successful in new markets. Finding the right partners will help you save time and money while allowing you to beat your competitors to international markets.
Learn more about how an EOR works – download the quick guide What is an Employer of Record?