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The rise of the new Destination Service Providers

The relocation landscape has continuously been shifting over the past years and continues to evolve at a dizzying pace today. While some have been trying to identify during the pandemic a “great resignation”, we have witnessed the great relocation. From increased domestic relocations pushed by work from home environment to talent starved scale-up companies making their relocation attractiveness a center point of their talent management.

As new relocation management technology comes into the market, however, are we going to see the most significant change yet come in the next decade? Are we going to witness the rise of a new type of Destination Service Providers (DSPs)?

Everyone’s an Intermediary

As the software available specifically to the global mobility sector increases exponentially regarding its quality and functionality we see more and more Relocation Management Companies (RMCs) and DSPs begin to take on each other’s workload. Much of the technology now coming into the relocations market is built around the single platform idea – that all stakeholders in the global relocation lifecycle, from RMCs and DPSs to HRs and assignees will use the same system to manage every aspect of the relocation.

As the lines become increasingly blurred between all players in the industry, everyone is moving towards the role of relocation intermediary. The introduction of single-platform workflows between different companies is providing opportunities for HRs to carry out DSP-like functions, and vice versa. Working in a more loosely defined environment may seem like a confusing future, but you may be surprised at how efficient relocation can become when professionals are free to handle tasks themselves or call on specific expertise when needed.

Employee is King

As the lines between HR teams and DSP become more blurred, and technology facilitates these changes, we will move away from clients requiring multiple points of contact for different parts of the relocation and immigration process. Instead, integrated software platforms can act as the single point of contact, where all other stakeholders can congregate to share and receive information pertinent to the job at hand. With mobile-first relocation software offering, we can finally say that employees can have access to consumer-grade experience before and during their relocation.

Some businesses have already begun to pop up which exclusively tout this employee first business model, offering much lower costs per relocating employee than traditional relocation or immigration provider, and Germany’s complex immigration and compliance landscape have been an interesting playing field for those start-up “digital DSPs”. These, however, are currently built to primarily target new or early career professionals who are just getting started and are embarking on their first global move. With proper care and integration of systems, we could begin to see this business model expand, and become the norm for all relocation, even for senior management and company directors.

Tapping into the Untapped

Moving towards a more unified relocation cycle will also allow both global mobility companies and their clients to explore as of yet untapped talent and revenues. By having the possibility to branch out into each other’s ‘territory’ when necessary during the relocation process, DSPs will be able to open themselves up to new sources of income.

Gone will be the days of passing off small, but necessary, tasks to your relocation partners to carry out, as you will be able to complete them yourselves, through your single-platform software solution. This allows everyone to focus more on what they’re good at.

Management is Key

How could it possibly work? Proper management will be essential in all senses of the word, from internal control to external output. DSPs are currently so vital because they provide the local knowledge that is so important to harness for relocations to be successful, and the immigration process to be as painless and effective as possible.

The lines between the internal HR teams and DSP will become increasingly hard to discern as both sides of the coin take increasing ownership over relocations and can carry out parts of each other’s tasks when necessary.



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