Outsourcing global relocation services is a leading cost-saving initiative in the Asia-Pacific (APAC) region, according to Cartus' latest Trends in Global Relocation: Global Mobility Policy and Practices Survey.
Conducted amongst international mobility managers, the survey found that 'outsourcing' (50 percent) was the number one change that APAC respondents have made in order to achieve cost savings in their global mobility programs.
In the survey, APAC's responses were confined to five areas of mobility practice. With 'outsourcing' first, the other areas included 'reducing the number of assignments', 'administrative process improvement', 'better and more proactive assessment of local talent', and 'tiering programs based on purpose or objective of assignment'.
Cost remains a key focus for organizations in APAC, with 71 percent reporting an increased focus on cost control in the area of global mobility, compared to the previous two-year period. This was more than 20 percentage points above the survey's global findings, with 50 percent of all respondents indicating a rising focus on cost saving in 2016.
"It is interesting to see that outsourcing is the number one relocation cost-saving initiative being made by organizations in APAC. Over recent years it has become more imperative for companies to balance employee relocation costs with the needs of the business, which is a big challenge," said Kenneth Kwek, Senior Vice President and General Manager of Cartus Asia Pacific.
"Of course, while cost reduction is a key factor in choosing to outsource mobility services, organizations still value the importance of receiving customer service excellence and policy and program advice from the external providers they partner with."
How outsourcing saves money
When it comes to outsourcing global mobility programs, there are two key areas in which it can help an organization to reduce costs:
It provides the benefit of being able to access the high-level talent required to accomplish mobility tasks, without having to pay for a whole team of employees.
Outsourced service providers have expanded buying power because they help move international assignees for thousands of organizations. They can use that volume leverage to negotiate favorable pricing, as well as insist on high quality service standards for the client company.