Japanese relocation service for foreign companies has a structural defect in a system.
Recently foreign companies are outsourcing all business of the personnel department to outside contractor of relocation service for the purpose of cost savings.
However this management strategy to contract out entirely of work failed and is not working well.
Consequently the question has come to the fore and many complaints have come in regarding Japanese relocation service by outsourcing it.
Foreign companies in Japan should perform a ground-up review of relocation service and make a drastic reform of the management strategy.
The underling causes are the following points.
（1） The Lack of a Sense of Belongings
In the event that foreign companies contract out entirely of work, since the outside contractor is not a member of the concerned company, the person who handles relocation service does not have “the Sense of Belongings” to clients.
（2） Lack of Experiences and Employee education
There is a great difference of human resources’ quality between a relocation company and a client company.
The inexperience of the relocation company and employee training is another factor behind the problems.
（3）Rebates and kickback money
A relocation company charges rebate / kickback money to real estate companies.
Rebates are common between a relocation company and real estate company. It is business malpractice for a client.
The management strategy is not going well for foreign companies to contract out entirely work to outside contractor.
In case of outsourcing the relocation service to outside contractor, it is necessary for foreign companies to check the outside companies’ business affairs well.