Indian companies are increasingly looking beyond the domestic talent pool as they expand into international markets, with 77% planning to increase overseas hiring over the next 12–18 months, according to a new survey by Deel.
The study, which surveyed 1008 senior decision-makers and HR leaders across seven major Indian cities, indicates that international hiring is becoming an integral part of Indian companies’ growth strategies rather than a peripheral workforce approach.
More than half of the companies surveyed—54%—already have over a quarter of their workforce located outside India, while 58% operate across at least four countries. Nearly one in five companies has an international presence spanning more than 10 countries.
The findings suggest that access to specialized talent, proximity to customers, and the ability to operate around the clock are becoming key drivers behind the overseas expansion of Indian businesses.
Access to specialized talent drives global hiring
Cost optimization is no longer the primary motivation for Indian companies hiring internationally. 34% of respondents identified access to specialized or emerging skills as their leading reason for global hiring, closely followed by 33% seeking greater proximity to customers and local markets.
Another 20% cited the ability to maintain 24/7 operations as a key factor.
Technology and engineering roles dominate international hiring plans. Nearly 89% of companies recruiting overseas are seeking advanced technology and engineering professionals, including software developers, AI and machine learning specialists, and research and development talent.
Sales and business development roles followed at 80%, while 45% of companies are looking internationally for product and design professionals.
North America leads as global talent destination
North America emerged as the leading destination for Indian companies’ international workforce, cited by 36% of respondents. Europe and the UK followed with 27%, while APAC accounted for 21%.
The distribution indicates that Indian employers are increasingly willing to recruit talent in higher-cost markets when those employees can contribute directly to technology development, customer engagement and revenue generation.
Rakesh Gaur, Head of Sales for India at Deel, said Indian companies are increasingly moving from serving global customers from India to establishing a more direct international presence.
According to Gaur, India’s growing economy, expanding startup ecosystem, digital capabilities and evolving policy environment are giving businesses greater confidence to pursue international expansion. He added that companies will increasingly need to treat overseas growth as a core business strategy supported by talent, technology and compliance capabilities.
Compliance emerges as a major expansion challenge
While Indian businesses are becoming more comfortable with international hiring, managing regulatory and administrative requirements remains a significant hurdle.
76% of respondents identified compliance and administrative complexity as their primary challenge to international expansion, rather than the direct cost of establishing operations overseas.
The challenges include managing international payroll, local tax regulations, statutory benefits, worker classification, and permanent-establishment risks.
The consequences are already affecting expansion plans. 36% of companies reported moderate or significant disruption to their international growth plans because of compliance issues, while only 10% said they were highly confident that their global HR and payroll operations were fully compliant.
Compliance delays affect business outcomes
The survey also highlights the broader business impact of workforce and compliance-related delays.
Among companies that experienced setbacks during international expansion, 42% cited delays in setting up local entities as a major issue. Visa, immigration, and work-permit delays affected 31%, while 27% reported problems involving payroll, taxation, or statutory filings.
Another 25% pointed to gaps caused by manual processes or disconnected internal systems.
These delays are translating into tangible business consequences. 70% of respondents said compliance-related delays postponed a product or market launch, while 67% reported pressure on leadership bandwidth, employee morale, or corporate reputation.
Nearly 59% experienced delayed revenue because newly hired employees could not become productive on schedule, while 49% reported losing or delaying a deal, contract, or project. Another 38% incurred additional legal, remediation, or unexpected costs.
Only 20% of respondents said compliance-related delays had no measurable financial impact.
Fragmented HR systems add to complexity
Technology fragmentation is another challenge facing companies with international workforces.
The survey found that 46% of companies operate a centralized HR system while continuing to manage global payroll manually. Meanwhile, 44% use between two and five separate HR or workforce management platforms for their international employees.
Gaur said fragmented workforce systems can turn operational inefficiencies into compliance risks as companies expand across jurisdictions. He argued that businesses seeking global scale will increasingly need unified platforms capable of managing international workforce requirements.
EOR gains traction among expanding companies
Against this backdrop, Employer of Record (EOR) services are emerging as an increasingly popular mechanism for Indian companies entering new international markets.
According to the survey, 34% of companies already use an EOR model, while another 24% combine multiple employment approaches, including EOR arrangements, contractors, and their own legal entities based on the market and role.
Companies using EOR services report significant operational benefits. 40% said the model saves both time and money, while another 35% identified time savings as the primary benefit.
The findings point to a broader shift in how Indian companies approach international workforce expansion, with talent access and market proximity increasingly taking precedence over cost considerations, while compliance, operational fragmentation, and workforce management emerge as critical factors determining the speed and success of global growth.
