Indian companies are rapidly shifting their focus beyond national borders, not just to leverage domestic talent, but to actively recruit globally. This strategic move is driven by the pursuit of specialized skills, a desire for closer proximity to international customers, and the need for round-the-clock operational capabilities, according to a recent survey.
Indian Firms Look Beyond Borders
A comprehensive study by global payroll and HR platform Deel, surveying 1,008 senior business and HR decision-makers across seven major Indian cities, highlights this significant trend. The findings indicate that a remarkable 77% of Indian companies intend to increase their global hiring efforts over the next 12 to 18 months. Moreover, more than half (54%) already boast workforces where over a quarter of employees are based outside India. The survey also revealed that 58% of these firms operate in four or more countries, with nearly one in five having a presence in over ten nations.
Driving Forces Behind Global Expansion
The primary motivations for this surge in global recruitment are clear. Approximately 34% of respondents cited access to specialized or emerging skills, such as advanced technology, AI/ML specialists, and R&D talent, as their top reason. Closely following at 33% was the importance of being closer to customers and local markets, particularly for sales and customer-facing roles. Another 20% emphasized the ability to maintain 24/7 operations as a key driver.
“For years, India was where global companies came to hire because of cost. Today, Indian companies are going out into the world to hire the best talent, wherever it exists, driven by capability and customer proximity rather than cost alone,” explains Rakesh Gaur, Head of Sales, India at Deel. “We're watching Indian companies graduate from being the world's cost centre to being a customer in the world's talent market.”
North America emerges as the leading destination for these global hires, attracting 36% of recruitment efforts, followed by Europe/UK at 27%, and the APAC region at 21%.
Compliance: The New Frontier of Global Hiring
While sourcing talent internationally may be becoming easier, managing it presents a new set of complexities. The survey reveals that 76% of respondents identify compliance and administrative burdens, rather than the cost of international hiring, as their biggest challenge to global expansion. Companies must navigate diverse local payroll systems, tax laws, statutory benefits, employment regulations, data privacy rules, and permanent-establishment requirements across multiple markets.
The impact of these challenges is substantial: 36% of companies report moderate or significant disruption due to compliance issues. Delays are frequently caused by local entity setup taking longer than expected (42%), visa and work permit issues (31%), and errors in payroll, tax, or statutory filings (27%). These delays have tangible business consequences, with 70% of companies reporting postponed product or market launches, 59% experiencing delayed revenue, and 49% losing or delaying deals and projects.
Navigating Operational Complexities
Many firms grapple with fragmented HR infrastructure. Nearly half (46%) utilize a central HR system but still manage global payroll manually, while 44% employ between two and five separate HR or workforce platforms for their international teams. Gaur advises against treating global hiring as isolated decisions, stressing the need for a scalable operating model from the outset.
To address these complexities, Employer of Record (EOR) models are gaining traction. The survey indicates that 34% of companies already use an EOR, with another 24% employing a hybrid approach of EORs, contractors, and owned entities. Among EOR users, 40% report savings in both time and cost, while 35% primarily cite time savings. As Indian companies continue to expand their global footprint, their success will increasingly depend not only on where they sell, but also on where they build their teams and how effectively they manage this diverse international workforce.