With the corporate world slowly coming out of recession, there has been an increase in the investment on trainings and people development. However, we also see a difference in the attitude of Training Managers and HR Executives. Rather than managing organizational development internally, there has been a shift in approach towards outsourcing learning initiatives.
Let us look at the Top 10 reasons for Learning Outsourcing from Mr. Doug Haward (internationally recognized as one of the leading strategists for training and outsourcing business models):
10. Leveraging Technology Costs – Investments in a LMS/LCMS is one of the 1st expenditures undertaken by organizations instead of building their own.
9. Training is Not Core to the Business – For many companies, training is a necessity. But the development, management and delivery of training is a distraction. For companies that manage training everyday, it IS core to their business.
8. Revenue Generation –More and more companies are now recognizing that training is a source of revenue, and they have intellectual property that is valued in the market. So they use another company that knows how to market, sell and deliver training to a mass or targeted audience to create new revenues streams. Case in Point – Microsoft, Cisco, and RedHat
7. Mitigate Risk – Training helps prevent failures. If we don’t provide the training our employees or customers need, and when they need it, we’re vulnerable to being sued if an injury or catastrophic failure occurs. So training reduces our risk.
6. Improving Scalability of Resources – People of various levels of skills and talent are required for managing a training successfully. Full-time internal staffs are a fixed resource. But training is a variable activity. Using an external supplier allows you to flex the number of resources to deliver the training you need – when you need them. It allows your company to scale up and down based on the demand of training you need.
5. Leveraging Channel Relationships – Partnering with a firm which specializes in training and has access to a large number of professionals for a particular sector, to market and deliver your trainings is a good idea.
4. Speed to Market – Using a training outsourcing company may allow you to get your product into a lot of customers’ hands much faster, without scaling up internal resources.
3. Geographic Reach – When a firm expands to new geographies it makes sense for them to outsource training to a company who have resources in Country and who understood the local culture.
2. Access to Talent – No company has all the knowledge they need internally to be successful. Sometimes it’s necessary to hire an expert to teach internal employees how to do something that is new to their company. Hiring an outside consultant to deliver a training course is considered outsourcing.
1. Cost Reduction – The number 1 reason why companies outsource training is to save money. It’s the bottom line. It’s the common denominator and culminating reason for all the other reasons mentioned above. We should never forget that how you manage training is always about how we manage costs.