Immigration Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Immigration Services Category Overview

The immigration services category is anticipated to grow at a CAGR of 5.8% from 2023 to 2030. Over the last two years, the number of international immigrants in Europe and Asia has increased significantly despite travel restrictions. The period between June 2021 and June 2022 has been noteworthy for a variety of reasons. Record levels of immigration in the U.K. have been attributed to a number of factors, including the lifting of lockdown restrictions in the U.K., the first 18 months period after the U.K.'s exit from the EU, the Russian-Ukraine war, a fresh visa route for British citizens living in Hong Kong (overseas), and the resettling of Afghan refugees. According to the U.K. Home Office Department estimates in 2022, more than 1.1 million people have immigrated to the U.K. between June 2021 and June 2022. During the same period, almost 89,000 people entered the country on account of Ukrainian Visa schemes. The demand for immigration services has in turn increased significantly because of these economic conditions.

Similarly, according to a report published by the International Labor Organization in 2022, it was found that the Asia-Pacific region accounted for more than 25% of migrant arrivals in OECD countries. Certain corridors in the region are affected by distress migration, particularly Bangladesh, Afghanistan, and Myanmar; there is also climate change-related migration occurring in the Pacific and among small island states. Many women migrants working in domestic, or contract jobs have frequently left countries such as Indonesia, Sri Lanka, Thailand, and the Philippines.

The number of immigrants in the U.S. is rising. Estimates from the Census Bureau in 2022 show that between 2005 and 2022, the total population of immigrants increased by almost 30%, reaching just over 46 million individuals in 2022. According to the figures, there were significant increases in immigration from Asia and Latin America in 2022. Additionally, a significant portion of newcomers held post-secondary or college degrees.

Another factor aiding the category expansion is the growing demand from out-of-country students who want to visit again after taking classes remotely during the pandemic. Organizations are spending more money on the resources and technologies required to integrate immigrants promptly and efficiently into their workforce. According to a study in 2021, I-9 paperwork was discovered to include errors in more than 76% of cases, which resulted in a fine from the Immigration and Customs Enforcement Department. Hence by and large service providers are focusing on adopting immigration software solutions that use the latest technology such as AI-powered predictive analytics to predict whether a case will be approved based on the application details. A few instances:

• In 2022, the Canadian government announced the implementation of Chinook, which leverages advanced technology and is a Microsoft Excel-based software designed by “Immigration, Refugees, and Citizenship Canada” (IRCC). Applications for temporary residency would be processed using this technology. By minimizing the effects of system and internet latency, it seeks to enhance customer service and increase efficiency.

• In October 2022, A legal technology and data firm, Fastcase and Siskind Susser, P.C. has collaborated to develop new artificial intelligence case management solutions built on the cloud to support immigration procedures. The new product will incorporate thousands of documents from the “American Immigration Lawyers Association Practice and Procedures Manual”. The tool will be developed on the “Next Chapter” case management platform.

• In May 2022, MyCase acquired Docketwise, which is an immigration technology and software firm. The standalone version of Docketwise will continue to remain available. The acquisition would enable Docketwise’s platform to have capabilities such as CRM integration, case management, and case tracking for smooth automation of immigration applications.

• In November 2021, formally was established as a legal tech start-up company that leverages AI to streamline immigration applications.

The global immigration services category is highly fragmented. This can be attributed to the presence of many large-scale immigration consulting service providers and pure-play immigration service providers. Due to high market fragmentation, there is a rise in many small and medium-scale unorganized players. As a result, there is an increase in counterfeit agencies which has become a major concern for service providers. For instance, in 2022, the number of immigration scams in the U.S. and Canada has risen steadily, particularly the H1-B registration system frauds in the U.S. Accordingly, service providers are actively engaging or collaborating with technology providers to develop new tools and thereby minimize the threats. Furthermore, the bargaining power of buyers increases due to low switching costs and the presence of many players.

The primary cost components include the services provided by the vendors such as consultant/translator salaries, tools and software required for automating and authenticating applications, report preparations, etc. Other overhead costs can include facilities and utilities, other permit fees, travel expenses, marketing and advertising, taxes, etc.  Factors such as the number of applicants, type of application, complexity and expertise, time, and resources required to conduct the checks and examination add up to the cost.

For instance, the government filing charges are around USD 1,760 for domestic applicants in the U.S. seeking a family-based green card and USD 1,200 for international applicants. The charges are without a medical examination. Similarly, on average, a medical exam costs around USD 200. Biometric costs can range between USD 80 – 100 for domestic U.S. applicants.  The filing charges and examination amount can vary significantly by provider. On the other hand, if the green card application or documents require any language translation by a translator other than English, the total cost of services will also increase. For instance, a one-page birth certificate-certified translation could cost anything from USD 20 to 40.

Some of the negotiation strategies considered in this category are evaluating visa and green card sponsorship terms and market conditions, understanding data ownership and termination provisions, selecting proper legal counsels having special expertise in this domain, and evaluating suppliers on immigration tools and software to prevent duplication errors and fines from immigration authorities. 

Immigration Services Procurement Intelligence Report Scope