Last year, from the US alone, approximately 60,000 Indian professionals returned to India; most of them from the IT sector. This number is not significantly lower than the number of Indians who leave each year in search of better prospects in the United States. The opportunity for a better quality of life and the availability of exciting new jobs in India are attracting qualified professionals back to their homeland.
Brain drain, the emigration of trained experts to developed countries like the US and the UK, has been a major concern for India since the past two decades. According to UNDP, the emigration of computer experts alone costs India more than $2 billion every year. The main reason for this mass migration of talented Indians was simple: jobs in India did not offer enough opportunities for career growth or financial gain.
Apart from the IT sector, India has experienced steady growth in recent years in the healthcare, pharmaceutical and biotech, finance, retail and real estate sectors. This economic boom created many new jobs in India; a substantial part of them in the IT segment. This has resulted in the gradual disappearance of the attraction to the United States and many of the Indians working in the US are now increasingly eager to be a part of India’s technological revolution.
Nasscom’s prediction that Indian IT industries could face a severe shortage of skilled IT workers by 2010 has come true to some extent. The EMA Partners International survey shows that due to the economic boom in certain sectors, Indian companies are facing a severe talent shortage at the highest levels. As a result of this, even during the recession years, the average wage increase in major Indian companies was 15%; substantially higher than 5.5% in the US or 8% in China.
The rapid growth of the IT industry has fueled the need for experienced professionals, and IT companies are ready to loosen their pockets to acquire the best talent. Many organizations are willing to pay up to 80% of what top professionals earn abroad, as well as offer significant benefits and allowances. The promise of career growth and good wages, along with proximity to family, are persuading a number of expatriates to leave their jobs in developed countries and find work in India.
Low cost and quality services offered by Indian IT companies have encouraged giant organizations like Microsoft, Google and Yahoo to outsource to India. This has created a large number of jobs in the Indian IT sector. Consequently, Indian professionals with work experience in developed countries are in high demand, and many of them are more than happy to meet this demand.
It would not be entirely true to say that the brain drain phenomenon has come full circle, but the wheel has surely started turning with India’s most talented professionals returning to work in India. Those who went abroad in search of a better lifestyle and growth opportunities are coming back and taking jobs in India for the same reasons: better jobs and more opportunities.