Why Companies Outsource Global Relocation and the Benefits of Outside Administration

In the past, many companies relocated employees only occasionally. Typically, these relocations included limited benefits and a narrow range of locations, so it was relatively simple to administer the program and manage a small group of local suppliers in house. Today, global relocation brings so many program, tax and legal considerations that outside expertise is an essential component of administering successful domestic relocation and international relocation packages. Outsourcing global relocation can bring companies several benefits:

Specialized Executive Relocation Expertise

The specialized expertise of full-service relocation management companies is a key reason that companies outsource. Relocation management companies like TRC Global Mobility offer a complete suite of executive relocation services and broad geographic coverage. Experienced relocation providers bring policy consulting expertise and knowledge of relocation best practices and tax and legal requirements. This expertise can help companies to ensure their policy is as competitive and cost-effective as possible—and create time for the company to focus on core business priorities.

Professional Supply Chain Management

Relocation management companies dedicate substantial resources to identifying, selecting, training and managing qualified service partners, such as real estate agents, appraisers and global destination service providers. Supply chain management is a massive task and an all but impossible one to manage effectively in house. Suppliers work under strict service level agreements, resulting in a better, more consistent transferee service experience.

Employee Relocation Cost Control

Relocation management companies can help clients to hold relocation costs down. For example, making sure that household goods arrive at the same time an employee’s new home is ready to be occupied cuts storage and temporary housing costs. Clients also benefit from the relocation provider’s supplier contracts and volume-leveraged pricing. In addition, outsourcing can bring a company more consistent policy implementation with fewer costly exceptions: employees are less likely to elevate special requests beyond the relocation management company to the client’s senior management to resolve.

Management of a Global Workforce 

It is all too common, particularly for larger companies with career expats, to have assignees fall off the radar. A relocation management company has the staff, visa and immigration relationships and technology to ensure the company remains compliant in all of the markets where it operates. This a critical factor in both cost control and risk management, as companies can be fined or even expelled from countries if the authorities find they have “shadow” employees who are not in compliance.

Sophisticated Technology

Many relocation management companies make substantial investments in sophisticated relocation technology. These systems not only power the companies’ internal workflow but also give clients 24/7, real-time access to relocation status information, budgeting tools and comprehensive reporting. With the data collected, relocation service providers can deliver complete year-end tax and gross-up information, eliminating another burdensome task for their clients. Many companies also give clients and relocating employees mobile access and tools so they can remain connected to their program or individual relocation while on the go. 

Improved Communications

Outsourcing relocation services can centralize communication and authority with one service partner, simplifying client management of the relocation function. Outsourcing also can improve communication with relocating employees by offering them a single point of coordination, eliminating duplication of communication and effort.

Enhanced Role for Client Administrator

Outsourcing can actually enhance the client administrator’s role. As “gatekeeper,” he or she becomes critical to the success of the partnership and essential to facilitating internal communication.

Is Outsourcing Relocation Services Right for You? 

Download the outsourcing relocation white paper to learn more about the benefits of outsourcing, considerations when deciding if it is right for you and best practices in selecting a relocation service provider.