In-House vs. Outsourcing An Expert Explains the Reality of Costs and Day-to-Day Operations

Introduction

This article is intended for companies that are considering hiring foreign workers under the Specified Skilled Worker program, or those that are already doing so, and who:

• Are unsure whether to outsource support to a registered support agency

• Are considering switching to in-house support

• Have been advised to switch to in-house support to reduce costs

• Want to know the best operational approach for their company

This content is aimed at those who fall into these categories.

 

Conclusion

The key is not to weigh the pros and cons of in-house support versus outsourcing, but to make a choice that aligns with the company’s organizational structure.

Furthermore, the most important considerations in implementing the Specified Skilled Worker Program are as follows:

“Hiring foreign workers does not end with recruitment; it is crucial to plan for their management after they join the company.”

 

What Is In-House Support?

“In-house support” refers to the practice where the host company itself provides support services to foreign workers with “Specified Skilled Worker” status, rather than outsourcing these duties to a registered support agency.

 

The main support services are as follows:

・Conducting pre-arrival guidance

・Lifestyle orientation

・Assistance with various administrative procedures

・Consultation and complaint handling

・Conducting regular interviews

・Support for Japanese language learning

 

To carry out these tasks appropriately, a robust internal system and a thorough understanding of the program are essential.

 

Role of Outsourcing (Registered Support Organizations)

By outsourcing to a Registered Support Organization, companies can reduce the burden of support tasks.

 

[Companies for Which Outsourcing Is Suitable]

・Companies accepting foreign nationals for the first time

・Companies without established internal systems

・Companies planning to accept a small number of foreign nationals

・Companies concerned about their understanding of the system

 

Outsourcing is the safest and most practical option during the initial stages of implementing the system.

 

The Misconception That “We Support Our Own Company Because It’s Cheaper”

In practice, you may hear the following explanation from registered support agencies or staffing firms:

“You can reduce costs by handling support in-house.”

Focusing solely on cost considerations is not the right criterion for making a decision.

 

The essence of in-house support lies not merely in cost reduction, but in whether you can establish an appropriate support system. (Cost reduction is a secondary benefit that results from this.)

 

If you handle support in-house without having an adequate system in place,

・Risk of legal violations

・Guidance or improvement orders from the Immigration Bureau

・Early turnover among foreign workers

 

These issues may arise.

Therefore, in-house support is a system that should be evaluated based on “system” rather than “cost.”

 

A Phased Model Recommended for Practical Use

 

[Phase 1] Full Outsourcing (Initial Implementation)

Upon implementation of the system, all responsibilities will be fully outsourced to a registered support agency.

Objectives: Ensuring compliance, stable system operation, and reducing the internal workload

 

[Phase 2] Partial Outsourcing (Stable Operation Phase)

Once there is a solid understanding of the system, certain operations are brought in-house.

Examples: Regular meetings, lifestyle support, and establishing an in-house counseling service

 

[Phase 3] In-House Support (Maturity Phase)

Companies that have established a sufficient infrastructure can transition to in-house support.

Objectives: Cost optimization, accumulation of know-how, and integration with human resources strategy

 

Comparison of Support Systems

 

[Stage 1] Full Outsourcing

Features: Safe and reliable operation

Recommended for: Companies in the early stages of implementation

 

[Stage 2] Partial Outsourcing

Features: Optimized costs and efficiency

Recommended for: Companies with stable operations

 

[Stage 3] In-House Support

Features: Advanced operations through in-house development

Recommended for: Companies with well-established infrastructure

 

The Role of Experts

The decision on whether to handle matters in-house should be based not on cost, but on the following considerations:

 

・Is compliance with laws and regulations possible?

・Is a support system in place?

・Does it align with the company’s actual circumstances?

・Is the system sustainable in the long term?

 

It is the role of experts to make a comprehensive assessment of these factors.

At the Nasu Administrative Scrivener Office, we provide advice tailored to each company’s specific circumstances and stage of development.

 

Key Message

The important thing is not to weigh the pros and cons of handling matters in-house versus outsourcing, but to make a choice that aligns with the company’s organizational structure.

Hiring foreign workers does not end with recruitment; “operational design” is crucial.

 

Summary

・In-house support should not be chosen solely for the purpose of cost reduction.

・The optimal choice varies depending on the company’s organizational structure.

・Outsourcing is effective during the initial implementation phase, while in-house support is effective during the mature phase.

・A phased transition is the most rational approach.

・Involving experts enhances the stability of the program’s operation.

 

If you are unsure about how to proceed, we recommend consulting with an expert in advance.

Please feel free to contact the Nasu Administrative Scrivener Office for an assessment of whether in-house management is feasible or for consultation on system design.