One of the key reasons why organizations outsource training activities is to achieve cost savings. And most accomplish this objective. According to a 2005 survey, firms that outsource training reduce total per learner costs by 31%. But what does this mean? These savings come at the cost of satisfaction and customized support of business units. And without these critical stakeholders, any outsourcing initiative is likely to fail.
THE EXPERTUS FORMULA FOR SUCCESS
Costs are certainly important. Outsourcing can bring efficiencies in many areas that businesses just can’t match. For instance, those companies outsourcing training administration have a reduction of 30 to 40% in administrative staff (per 1,000 learners). Nevertheless, focusing solely on cost reductions can be extremely short-sighted. Consider this: The typical corporation allocates from 1 to 3% of its overall operating budget to learning. On average, labor costs absorb 70% of that same budget. By identifying where training can impact overall workforce performance and have direct correlation to business results, even fractional improvements can produce remarkable financial reward. Through complete understanding of business unit requirements and an objective analysis of business processes, Expertus can help its customers identify areas of greatest business impact and help in establishing how these rank in terms of priority. Learning strategy Consultants assigned to each business unit ensure each manager is made to feel like a major stakeholder and has the opportunity for direct input. They can also be highly valuable in preparing formal, business-based proposals for new investments or programs.
We also encourage continual input and feedback from business managers. Typically, we set up quarterly review meetings to go over learner data collected and to discuss all aspects of current and planned programs. Besides helping us continually improve service, these meetings also increase each manager’s level of involvement and ownership in learning.
Tags: learning, outsoucing, training
