Are MNCs better Employers than Indian Companies? Pros and Cons

mnc vs indian companies

Opting to work with either MNC’s or Indian companies is a critical decision for any job seeker. It requires a thorough understanding of the advantages and disadvantages of both the institutions.

The well-known multinational companies (MNC’s) are enlisted as Fortune 500 groups whose work culture attracts many who want to gain an enriched global experience.  MNC’s assist individuals to keep themselves updated with technological advancement across the world. Several MNC’s including Hindustan Unilever, Vodafone, GlaxoSmithKline, PepsiCo, Coca-Cola Co., Amazon etc. already touch our daily lives.

At the same time, major Indian players have attracted young talent to explore and achieve success. Some of them are Tata, Reliance, Airtel, Parle Agro and ITC which are household names in India and are recognized brands in the overseas market as well. The Indian market witness’s cut-throat competition between MNC’s and the local companies.

The same holds true when it comes to seeking a job. This makes it imperative for everyone to learn about how MNC’s compare vis-à-vis India’s homegrown companies.

MNCs v/s Indian Companies

Have a look at some of the critical signals that will assist you to know about essential competencies and differences between MNC’s and the Domestic conglomerates.

  1. Research & Development:  Multinationals are capable of investing hugely in Research and Development (R&D) and innovate massively as compared to Indian companies. They have big laboratories in various countries and have an impressive talent pool for activities related to R&D.

    On the other hand, Indian companies tend to lack major R&D facilities which results in their talent pool being limited to standard practices and knowledge.
  1. Business Sustainability: Multinationals are able to invest money into Indian operations in order to sustain the business. A typical example is that of Amazon, a global online company. This organization is US-based and is listed on the New York Stock Exchange. Even though it has foreign origins, Amazon continues to maintain its position as India’s most in-demand online store.

    Indian competitors that emulate Amazon’s model face challenges to sustain their business despite creating a niche for themselves in the market; the sole reason being the lack of funding.
  1. Corporate Culture:  Corporate culture envelopes many things. It describes the values, beliefs and competencies that showcase how they treat their employees, customers and business associates.

    Multinationals have an advantage because they aim to maintain a corporate culture in India that is consistent across their worldwide operations. Therefore, MNC’s have well defined policies for code of conduct, human resources, customer care services and business ethics. Indian firms also have a corporate culture.

    At Indian companies, standard operational practices are well defined but implementation is an issue. In due course of time these policies take a backseat and the people working in such organizations fail to follow them strictly.  
  1. Brand Positioning: The obsession for foreign brands in India continues even after 70 years of independence. Therefore, MNC’s take advantage of this situation and start a brand in the Indian market that is already popular across the world and enjoy immediate profit on it.

    On the contrary Indian companies starting a good indigenous variant face hurdles for several years and spend huge amount of resources on promoting and advertising in order to hold and retain the attention of the target audience.

    A common myth among Indian consumers is Multinationals offer better quality products over Indian firms.
  1. Employment Policies:  With regards to the employment policies, Multinationals have a consistent employment policy across the world. Compensation might change according to the location and currency exchange rates, but the standards followed would be the same all over. Perks paid and all other employment clauses related to hiring, termination, promotion and resignation of employees will also be similar to what their peers at the headquarters follow.

    Indian companies also have excellent employment policies but once again, they suffer a setback during the implementation of it. But in Indian companies, you can communicate and show your work directly to the manager and have a personal contact with the HR for any conflicts that arise at work.

It is interesting to observe that Multinationals are gaining popularity among Indians during current times while at the same time, the Indian companies are getting established in international markets.

This clearly shows that both are quite similar to work with and neither one can be considered as superior or inferior in the present context. Some Indian companies are listed on the New York Stock Exchange and Nasdaq. Such companies with their phenomenal Price Earning (PE) ratios are top tier companies and remain ahead from even a few of the listed MNC’s. 

It is not easy to say which among them is a better place to work, as by seeing and analyzing the current trends, both show an equal growth approach. 

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