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The Economy’s Impact on Outsourcing
The challenging economy was a significant driver for a downward outsourcing trend, and it likely will be an equally large driver of the recovery.
Companies need effective learning programs to transfer knowledge and skills to employees, customers and partners, to retain employees and to improve speed to proficiency. But how they develop this knowledge transfer capability varies. Learning programs can be grown organically over time, developed in-house, outsourced to a learning provider or implemented using some combination of in-house and external expertise.Every other month market intelligence firm IDC surveys Chief Learning Officer magazine’s Business Intelligence Board on a variety of topics to measure senior learning and development executives’ attitudes, issues and interests. This month’s topic is learning outsourcing, and the findings and interpretations are relevant to companies that outsource and those considering outsourcing. The decision to outsource often rests on the volume and quality of learning internal staff can support. Overall, enterprises that outsource learning are satisfied with outsourcing, and expect to maintain or increase spending levels for 2013. About 50 percent of enterprises use an outside provider to augment some part of their learning function. Most often, enterprises use external vendors for content development, learning delivery and learning technology management. It’s All About Change
IDC defines learning outsourcing as the ongoing transfer of the management and execution of one or more complete learning processes to an external services provider. However, it is clear from survey results during the past several years that this is not the marketplace’s current definition. The types of learning activities purchased suggest enterprises use the term learning outsourcing synonymously with any use of external learning providers. In the past several years, there has been a decline in the number of enterprises that outsource part of their learning functions. In 2007, 58 percent of enterprises outsourced some portion of their learning process. By 2010 only about 45 percent of CLOs reported outsourcing some portion of their learning function. In IDC’s most recent survey, the trend appears to have stabilized, with 50 percent of enterprises reporting outsourcing some portion of their learning function for the past two years (Figure 1).
Leveraging the Latest in Brain Science to Deliver the Next Generation of E-Learning
May 29th 1:00pm - 2:00pm CT
2013 CLO Breakfast Club, Boston
September 12th - 12th, 2013The Westin Copley Place
Fall 2013 CLO Symposium
September 30th - October 2nd, 2013Rancho Las Palmas Resort & Spa
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