India second most challenging locations for expats, says survey

India has emerged as the second-most challenging location to work for expatriates after China across the globe even as multinational firms are expanding their presence in the emerging economies, says a study.

About 46 per cent of multinational companies reported a decrease in the number of international assignments over last year, while about 44 per cent of the MNCs plan to ramp up their overseas postings this year, according to an annual Global Relocation Trends Survey.

The reported decrease in the number of international assignments is a record high level in the 15-year history issued by Brookfield Global Relocation Services.

"China, India and Russia ranked first, second and third, respectively, as the countries that expatriates found the most challenging," the survey said.

Moreover, these countries have also emerged as the most challenging locations for expatriates due to the issues related to housing, schooling, immigration challenges and healthcare costs among others.

"Led by strong economic activity from emerging and developing economies in Asia, international assignments in the region are increasing, but challenges – mainly due to the difficulty in finding suitable housing, schooling, health care, and immigration red tape – remain," Brookfield Global Relocation Services President Rick Schwartz said.

Besides, India has emerged as the most challenging destination for corporate international assignment policy and programme managers -- replacing China which had occupied the top position since the 2003-2004 report.

China and India topped the list of locations with the highest rates of assignment failure, interestingly they are also among the top destinations for overseas assignments.

"A key way for companies to maximise their return on investment while minimising assignment failure is by providing mandatory cross-cultural training to assignees and their family."

"Although 80 per cent of companies surveyed said they provide formal cross-cultural preparation, only 17 per cent (down from 22 per cent last year) mandated it," Brookfield Global Relocation Services Executive Vice President Scott T Sullivan said.

Most of the foreign assignees do not prefer to keep their families with them during international assignments, as only 47 per cent of international assignees had families with children.

The survey was conducted among 120 multinational firms, covering a total employee population of 5.8 million.