The global relocation market is expected to grow with a significant margin. Most dominant factors aiding its growth include on-time delivery, transferee satisfaction, the knowledge of the consultants and the responsiveness of the recruiters. International assignments in countries such as India, Japan, Singapore, Australia, UK, and America are driving the relocation industry trends across the globe. This leads to the outsourcing of international service providers who benefit from the accelerating number of technology jobs in the destination countries. The presence of Fortune 500 organizations in countries such as India, South America, and Brazil is further driving the relocation industry. The domestic relocation market in these regions is at a nascent stage and service providers are actively seeking professional guidance from foreign players.
General Overview Of The Relocation Industry
To understand the challenges faced by the global relocation industry, it is important to understand the trends, stakeholders and the operations of the industry. The market for relocation industry can be segmented into that of Asia Pacific, Europe, North America, Latin America, and the Middle East and Africa.
However, factors such as inflation, restrictions on the easy and convenient flow of immigrants and the country-specific regulatory complexity are restraining the relocation of employees. Employees from regions such as Latin America, Brazil, and Argentina have difficulty in finding a supportive work base in the desired destination countries. Operational inconvenience in the relocation services is making the service providers pay extra attention to solving relocation problems for employees from these regions.
Trends And Challenges In The Relocation Industry
44% of recruiters believe that cost control is one of the biggest challenges faced by the relocation industry. A successful employee relocation can be ensured if both an employee’s housing facility and a degree of job security can be addressed. An increase in the rate of crimes committed by immigrants is also identified as a challenge. Due to national as well as global reasons, many western companies are discouraging immigration from eastern economies. This is keeping deserving candidates from established companies located in developed nations.
As another challenge, expensive tax compulsions in the relocation service industry is a hindrance in the market expansion. This makes the process of relocation more expensive which is a major discouraging factor for applicants.
In order to address this concern, recruiters are increasingly focusing on simplifying the application procedures, are encouraging newer and more robust skill-set in the company the employer works in before migrating, and are organizing ways which foster better communication between the destination company and employees.
The global talent is observed to be intensifying as more and more companies across the globe are dealing with the problem of an aging population with a shortage of skills. Companies are now looking for people who can grasp and learn new technologies practically. The Asia Pacific nations of China, India, and Bangladesh are increasingly being identified as major consumer markets for relocation industry players.