Outsourcing Increase in 2010?

Those companies that are outsourcing training functions primarily to supplement internal resources do so to have training resources available on an as-needed basis. Companies looking to deliver training beyond the capabilities of internal resources consider that training outsourcing can be managed like just-in-time inventory, with services on hand as needed, while also resolving issues of cost, lack of talent and timing (being able to ramp up training needs quickly).

Those that outsource seem to be somewhat less satisfied with their providers than in the past. While almost 30 percent of CLOs report being very satisfied with their providers overall, this is down from nearly 40 percent in 2007. To be fair, only 5 percent of CLOs are dissatisfied with their providers. These satisfaction levels are consistent with 2007 results, and so it appears that training providers continue to provide quality services to their customers.

Provider Expertise in Training and Subject Matter Critical
The most important qualities to consider when looking at a training outsourcer are training expertise and subject-matter expertise. These are the fundamentals for providing high-quality training services in terms of understanding the subject matter and knowing how to impart knowledge to the audience. Other important factors are vendors that act as business partners, a good cultural fit between the customer and the vendor and industry knowledge. These qualities, while possibly harder to assess in the proposal process, are key attributes for a successful relationship, especially one where the vendor will represent client companies in training situations for employees, partners and customers. These factors have remained consistently important for several years. However, the economic crisis has increased the importance of a provider that can create a flexible arrangement and those with financial stability.

CLOs and Heads of Business Units Are Decision Makers
The ultimate decision maker for outsourcing choices is changing. From 2006 to 2007, it appeared that HR executives were becoming more active in the decision-making process — even more so than CLOs or heads of training. More recently, however, CLOs and heads of business units have taken on more decision-making authority across companies. This places the responsibility for the business impact of learning and training outsourcing squarely on the shoulders of the executives impacted by the decision.