Hiring Employees And Vendors in India
As employers around the world progress towards a standard practice in global background screening, they are discovering a range of unique regional- and country specific issues that must be addressed and resolved to optimize their hiring success. India, the focus of this document, is a prime example.
For starters, India is a hotspot that has become synonymous with the offshoring or outsourcing of key business processes such as information technology (IT), product development, shared services for back office functions, and customer support. Likewise, considering its massive population, roughly 1.2 billion people compared to 313 million people in the United States (U.S.), it’s also a hiring mecca for organizations looking to recruit the best talent to work both inside and outside the country.
With India’s vast array of vendor options and employment candidates comes the responsibility of performing appropriate levels of due diligence, and this is where country-specific background screening issues begin to emerge.
With no standardized government-issued identification (ID) such as a Social Security Number and no centralized databases for criminal records or employment and educational data, the process of vetting vendors and candidates within India is largely a manual, resource-intensive process that can be rife with subjectivity, inconsistency, inaccuracy and—if not carefully managed—questionable, dubious and even corrupt practices. This is a potentially huge compliance risk for many global organizations.
What’s more, restrictions and permissible searches vary based on governmental departments and jurisdictions, making compliance a particularly complex burden for most organizations. Compliance can also be severely compromised by localized vendors who may have little-to-no understanding of global compliance, multinational IT or data security requirements, and lack the appropriate data security infrastructure, processes and business practices that large, global businesses often require.
These risks are real, and something every employer should consider when determining how to screen candidates from India.