The decision between in-house IT and outsourced MSP is critical. Get it right, and technology enables growth. Get it wrong, and you face either bloated payroll or inadequate support.
The True Cost of In-House IT in Tokyo
Most companies underestimate in-house IT costs extending far beyond salaries.
An IT Manager costs ¥10-15 million annually. A System Administrator costs ¥6-10 million. Helpdesk staff earn ¥4-7 million per year. A minimal three-person team requires ¥20-32 million in base salaries.
Social insurance, bonuses, and office space add 30-40%. Training adds ¥300,000-500,000 per person annually. Fully loaded cost becomes 130-140% of base salary, reaching ¥26-45 million total.
Recruitment agency fees add 25-35% of annual salary. Even three-person teams struggle to provide consistent 24/7 coverage.
What Outsourced IT Support Includes
24/7 monitoring, helpdesk support, strategic IT planning, vendor management in Japanese, security monitoring, compliance documentation for APPI and ISO 27001, and scalability for adding users without hiring delays.
Major projects, hardware and software costs, and third-party cloud services are typically your responsibility.
Cost Comparison by Company Size
10-25 Users: Small Office
In-house: ¥26-45 million annually—over ¥1 million per user.
Outsourced: ¥300,000-500,000 monthly (¥3.6-6 million annually), representing 60-75% savings.
25-50 Users: Mid-Size Office
In-house: ¥26-45 million annually (¥520,000-1.8 million per user).
Outsourced: ¥500,000-800,000 monthly (¥6-9.6 million annually), saving 65-78%.
50-100 Users: Larger Mid-Size
In-house: ¥35-55 million annually (¥350,000-1.1 million per user).
Outsourced: ¥800,000-1.5 million monthly (¥9.6-18 million annually), saving 50-70%.
100+ Users: Enterprise
Five-to-seven person teams cost ¥45-80 million annually. Many enterprises adopt hybrid models with in-house staff for strategy and MSPs for operations.
When In-House Makes Sense
Proprietary technology requiring deep institutional knowledge justifies in-house staff. Organizations undergoing rapid transformation benefit from dedicated focus. At 200+ users, in-house IT economics become compelling.
Hybrid Models
Successful organizations combine approaches: in-house strategic team plus MSP operations, or co-managed IT with MSP backup.
12-Point Evaluation Checklist
Technical: Verify certifications (Microsoft, Cisco, AWS).
Service: Confirm specific SLAs (15-minute critical response).
Cultural Fit: Test English fluency, verify international company experience.
Business Terms: Avoid long lock-ins, demand pricing transparency, request references.
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About AKRIN
AKRIN K.K. provides outsourced IT support with transparent pricing. Contact us for a free cost analysis.
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