Expatriate Failure in the Indian Context

Topics: Multinational corporation, Investment, Foreign direct investment Pages: 5 (1367 words) Published: June 20, 2012
Is Expatriate Failure a Myth?
During the 1920s & 1930s, many of the nations –states of the world erected formal barriers to international trade & foreign direct investments. International trade occurs when firms export goods & services to consumers in another country, where as foreign direct investment occurs when a firm invests its resources in business activities outside its home country. As a result of globalisation- the process through an increasingly free flow of ideas, people, goods, services & capital leads to the integration of economies & societies which has brought raising prosperity to the countries that have participated . It has boosted income & helped raise in living standards in many parts of the world making technology available to all. Past international human resource management literature has suggested that firms employing expatriate managers have difficulty in successfully retaining these managers in over seas assignments.

Research Objectives:
The study tries to explore as to;
1. Who are expatriates
2. The staffing approaches followed in the Multi-National Firms 3. What is the basis of selection of an expatriate in the Indian MNCs 4. What are the dimensions of expatriate failure
5. What is the degree of expatriate failure in MNCs in India The Research Frame Work:
The method of investigation that is deemed appropriate for this study is exploratory & descriptive research, which tries to seek the answers the research problem. The mode of research gathers data from respondents at a particular time, through interview. Data Source:

The Secondary data was collected from publication such as library books, business periodicals, company profiles, journals, business magazines and internet.
The primary data was collected through interviews & interaction with international human resource managers & international assignees. Further discussions held with academicians, professionals and employees to get an insight into the concept to obtain their expert views on the subject.

Research Instrument:
Questionnaire & personal interview were used to elucidate information from the international human resource managers & international assignees Scope of the study:
Multi national companies with specification to IT( information technology) & ITES information technology related services ) in Bangalore were chosen as target respondents. Selected companies were Infosys, Northern Trust Bank, Outsource partners international (OPI), A&Z, JPMorgan financial services. The study confines itself to those companies within India which goes about sending employees on international assignment. Limitations of the study:

This study is basically a pilot survey to determine the weather expatriate failure is happening in Indian Multi National Companies, the response received from the few selected respondents from IT & ITES is the information of the companies in which they are working & when generalised to the entire sector there may be few deviations

Who is an Expatriate?
Expatriate are employees who are working in the organisations who take up international assignment & move to a foreign land to execute the assignment. In specific an expatriate is an employee who is working & temporarily residing in a foreign country. They are also known as international assignees.

Basis for selection of expatriate:
Staffing patterns may vary depending on the length of the time that the Multi –National firms has been operating. Many MNCs will initially relay on home country managers to staff their international units, gradually putting more host country nationals into management positions as the enterprise gains experience. Another approach is to use home contrary nationals in less developed countries & employ host country nationals in more developed regions. A third pattern is to put a home country manager in charge of a new...
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