Employee Relocation Management Market Intelligence

Industry Outlook & Drivers

Global Employee Relocation Industry Outlook

The global employee relocation market was valued at $29 billion in 2017 and is forecasted to grow at a CAGR of 3–4 percent to $32 billion by 2021.Increasing number of international assignments in the US, Western Europe, Australia, Singapore, Japan, India, and China are driving the relocation services market

Global Employee Relocation Market Maturity

• Rise in the number of international and domestic assignments have been the major drivers for the growth of employee relocation services market in North America and Europe.
• Increasing number of IT and consulting assignments, expansion of operations of Fortune 500 organizations in India, China, Brazil, South Africa have accelerated outsourcing of relocation services to global service providers

Global Relocation Industry Trends

• Buyers in North America and Europe are outsourcing relocation services to global players that can offer end to end solutions including technology platforms that can track the relocation process and expenses.
• Regulatory complexity, inflation, and immigration restrictions in Latin American countries such as Brazil and Argentina are not supported by global players, hence the market is still at a nascent stage
• International assignments are increasing in APAC and Middle East accelerating the demand of relocation services in this region.
• The buyers have been opting for standalone services that support payroll, taxation, HHG, spousal support, etc., and regional/local niche players.
• The pressure for cost reduction of relocation program is high. This is generally attained by shortening the tenure of the international assignment

Global Relocation Drivers and Constraints

Drivers

• Expansion of Operations: Major companies are establishing facilities in developing countries. Developing economies like India are opening up for FDI from foreign players, thus increasing the number of foreign assignments and need for relocation
• Recovery of Developed Economies: Western economies are recovering from recession and they are showing positive signs of growth, which would increase the number of foreign assignments
• Technology Support and Adoption:  Service providers are offering technology platforms that offer tracking and expense management solutions for buyers. Communication and corporate support has become easier

Constraints

• Cost of International Assignments: HR managers often fail to estimate the total cost for international assignments. Currency fluctuations and retention of talent are also major factors that impact the cost of relocation
• Tax and Immigration:  Tiered policies are implemented as per different relocation program like tax grabs is one of the major constraint in easy transitioning of an expat. For example, income tax is assessed on family or household basis in France
• Trump Effect: The new orders from Trump could impact the international relocation, especially the inbound movement to the US