India calling

The expansive demand-supply gap for R&D talent in the country is driving Indian pharma companies to lure mid-career expatriates to head their research divisions, writes Vanessa Mahapatra.

The need to innovate is driving the Indian companies to a desperate hunt for skilled professionals with expertise in drug development and research. There is an obvious dearth of home-grown professionals trained in clinical research, as the best young talent left the country towards more challenging career opportunities. Nonetheless, triggered by the recent amendments in patent laws, the Indian pharma industry is on the verge of exponential growth. Most companies have now refreshed their R&D initiatives and introduced new projects supported by state-of-the art laboratories. These unprecedented opportunities are attracting mid-career professionals, placed in non-critical roles in foreign pharma companies.

Demand and supply

India never lacked in talent, but the crème de la crème of the scientific community left for greener pastures as there was no research activity in India. "Till 2005, the R&D spending in India was lesser. Scientists went to the West, where their work was recognised, patented and there was better funding," comments Dr Swati Piramal, Director-Strategic Alliances and Communications, Nicholas Piramal. However, with industrial R&D now gaining ground, gone are the days when there was a lack of prospects. To add to this, globalisation has standardised work place cultures and the booming economy has made the standard of living in India almost at par with developed nations like UK and the US.

Bringing back expats is primarily driven by the need for specific, core skills in drug research. An expat, with his or her expertise in niche areas of R&D and drug discovery can add value to the domestic pharma company, when it comes to setting up new departments. "It is typically about higher quality of talent. Expatriates bring about exposure to superior high-end research, which is useful to India and which was not being done here because of financial and technological constraints," states Rajan Dutta, President, Human Resources Development, Lupin. They also acquaint companies at home with the legal and regulatory processes followed abroad, claims Dutta.

Many MNCs are getting expats back since there are several Indians working within their respective companies globally. "It is a good option for such companies to have someone already acquainted with their culture and business principles to work here, rather than an outsider, who would require significant on-boarding," says Vikram Bhardwaj, Managing Consultant, Redileon Executive Search.

Dr Swati Piramal Director-Strategic Alliances and Communications Nicholas Piramal

Rajan Dutta President, Human Resources Development Lupin

Vikram Bhardwaj Managing Consultant Redileon Executive Search

The pull factor

The obvious attraction for an expat is the 'home coming'. Yet, there are always factors of anxiety associated with relocation, change in the cultural landscape and lifestyle, which cause apprehension. Thus, Indian companies need to make an irresistible offer in order to attract the vital brainpower. Skilled expatriates basically look at higher designations and greater responsibilities in their homeland. "They want to make a difference," cites Piramal. The fact that they are brought down to lead research projects pulls them. Bhardwaj adds, "Salary is not the biggest draw for an expat to return to the pharma business in India. More important factors are—a wider canvas of responsibilities, an opportunity to shape the future of a company (since most Indian companies are relatively small compared to several global peers), personal reasons, et al." Most researchers come back to high designations like Head of Clinical Research, Vice-President for drug discovery departments, Chief Scientific Officer and even something as new as Head of Combinatorial Chemistry. At Lupin expatriates are inducted in the roles of research scientists, research directors, research analysts and project leaders.

Setting the stage

Assimilating expats into a polarly opposite corporate culture is not an easy task. Various issues need to be addressed in order to make the corporate set up suitable according to their needs. Most companies have to adhere to strict contractual norms. Contracts, pay modules and hiring policies, vary for expatriates as they come from stringent professional working environments. For instance, Bhardwaj points out that one cannot change the base of location, role, designation, title or responsibilities of an expatriate without mutual consent. Hiring a person on expatriate terms is far complex, as it requires sticking to stringent norms mentioned on a pre-defined contract. Also, the process of absorption of these candidates includes orientation programs or on-boarding formalities, wherein, the person is introduced to how the business of this country works, the culture, the set up and the management of the organisation.

The hitches

The foremost hurdle is the clash of cultures. Workplace culture in India is different from that of most western nations. According to Bhardwaj, people abroad work in an individualistic fashion, whereas, Indians believe in a collaborative system. It takes time for a returnee to acclimatise himself to the new environment. And this is where the management needs to balance various issues by thoughtful integration and harmonisation.

"Every country has a different way of working. Abroad, they work in a slow and systematic manner," mentions Piramal. It sometimes takes five levels of approval for a work to reach its level of consummation. Furthermore, expatriates work in specialised roles within a narrowed down and specific job description in foreign companies. However, in India, the corporate set up expects them to perform multiple roles, within a much larger domain. The not so tight-jacketed roles and other such discrepancies in the workplace systems often pose as difficult claims for the expatriates to adjust to. These needs have to be balanced by the companies by creating more structured and classified research units with specific functions and responsibilities for employers. "Both systems have their pros and cons. It is about learning from the positive aspects of each culture," Piramal comments. Globalisation and standardisation of professional mindsets, cultures and ethics is the answer to transition troubles. "Indian companies are now going global," comments Piramal. The industrial and management processes are now being handled more professionally and ethically. Very soon, cultural problems would be completely passé.

Heavy on the pocket

Bringing back expatriates is also a financial strain. "Overhead expenses of relocation could be higher than their salaries," observes Bhardwaj. Some of them wish for their families to continue living in other countries. This accounts for extra expenses in terms of frequent trips for family visits, which are borne by the company. "We have also encountered a situation, where a large Indian company let go of a potential candidate, who wanted to operate from India every alternate quarter and the rest from US," Bhardwaj states.

Sometimes, an expat's expectations pose problems for the management. Most return with unrealistically high better-than-market salary expectations. Growth, both in terms of salary and position, comes only for senior level heads, who possess immense management and research skills or domain knowledge and hence, make significant contribution to the organisation. Once into the company, people tend to consider their NRI status as the factor that would constantly stimulate their growth. The core skills, on the basis of which an expat gets employed, cannot carry him through to the top level. Like every other employee, an expatriate too needs to constantly upgrade his skills and knowledge base. In the light of high attrition rates, the company is to some extent responsible for retaining expats. "Managing their aspirations is the key issue," says Dutta. "As they contribute, one must continue to give them recognition and rewards, provide them training and therefore, value-add to their skills through a basket of activities including challenging assignments," he adds.

The final call

The Indian pharmaceutical industry is the place to be. Though the current centre of focus of the industry is R&D, this is not the only growth sector. Till recently, employment opportunities for expats have mostly been in core research areas. However, with Indian companies spreading their markets internationally and demonstrating overall consolidated growth, there are expansions in terms of implementing IT solutions, recruiting HR services and revamping marketing initiatives. Hence, expatriates are now being hired into the sales and marketing teams and IT sections too. The demand for HR talent is being met by inviting professionals from abroad. Reverse brain drain phenomenon benefits the industry in many ways. It brings about a cultural synergy, adds to the existing knowledge base, introduces Indian companies to new methodologies and processes and most importantly increases and widens the talent pool. In future, this phenomenon will stimulate new innovations and bring down the cost and time consumption of drug discovery processes.

editorial@expresspharmaonline.com