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As the second-largest emerging market in the world after China and the home to nearly one-sixth of the global population, investment in India has risen significantly in recent years. India offers numerous advantages to foreign investors, including a good supply of well-educated and English-speaking workers whose services cost significantly less than staff in the West. During the recent economic downturn, numerous companies set up business process outsourcing operations and factories in India. With rising operational costs being noted in China recently, even more companies are now turning their attention to the subcontinent, in which it is comparatively easier to establish foreign outfits. Part and parcel of this trend towards investment in India is a growing demand for lawyers, and there has been a significant upturn in requests from companies for their lawyers to be based in India. There is particularly strong demand for information technology, media and banking lawyers to work in-house. As a result, many foreign professionals are currently looking towards India and seeking to service the new businesses that are rapidly being established in the country. Unfortunately, this increased demand is not yet being matched by a sufficient supply of candidates with the skills that large companies tend to request. There are of course plenty of very capable domestic lawyers in India, although the vast majority tend to work in general practice, which usually makes them unsuitable for specialist roles within large multinational corporations and banks. Due to this perceived lack of specialization, it is not felt that the local legal market can yet completely service the growing needs of international businesses. Accordingly, overseas investors are currently looking abroad for lawyers with specific expertise. However, in the current economic environment it is relatively difficult to attract expatriate lawyers to India. India has not yet been established as a key destination for expatriate lawyers, particularly because of concerns by foreign lawyers to move outside of the established global legal centres. Perhaps one fresh source of candidates is in the large global community of non-resident Indians. Needless to say, the shortage of lawyers for in-house positions in India in expected to change rapidly as the market matures, as it has done elsewhere. Such a set of circumstances tends to lead to one very obvious result, namely upward pressure on salaries. In general terms, positions with better remuneration packages tend to attract a greater number of candidates. The practical effect of this in India over recent years is that there has been a very significantly increase in salaries being offered to foreign lawyers. A few years ago, expatriate lawyers in India were typically offered about US$40,000 to US$50,000 a year, in reflection of the relatively cheaper cost of living in the country. However, offers of US$150,000 and even up to US$200,000 are now not uncommon. In light of the increasing business activity in India, it should come as no surprise that it is currently being closely observed by several international law firms, particularly with discussions to open India's legal market to foreign law firms currently underway. Until that happens, law firms in Singapore stand to benefit the most from the increasing level of foreign investment in India, with many such firms having taken on an intermediary role between Indian law firms and international investors. |
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