Certain companies decide on outsourcing the training and development services which seems appropriate economically and with respect to the business. Firstly, it seems economically more reliable to and cheaper to have an outside vendor to design your training than hire a full-fledged instructional designer to execute the same task. Ergo, if the company initiates training for the employees occasionally, then it seems more sensible to opt for the external instructional designer/training company. However, multiple companies outsource their training supplement the internal resources. An example to emphasize on this would be that an internal training department may execute the instructional design exceptionally while requiring some help in the area of development or production. Another reason for outsourcing training and development by organizations is that the internal training department may be inexperienced and have less knowledge about the area where training needs to be implemented. For example, if the organization wants to train their employees towards implementing an agile project management or the utilization of a new tool that no one in the company has knowledge about, then it is wise to outsource your training and development.
Predominantly, outsourcers supplement to the company’s requirements and needs by providing virtual-lead training, self-paced learning and classroom-based instructions. However, the companies that provide such training do not limit their services to just training. They grant access to a variety of things from administrative tasks to strategic planning which contributes to the development aspect of the company. Here are examples of some the tasks which can be part of outsourced training and development projects:
- Access and approach to skill gaps.
- Cultivating and developing training strategies.
- Designing the curriculum and the course.
- Scheming of the certification programs and the assessment criteria.
- Equip the application that supplements and encourages learning.
- Implementing, executing and administering Learning Management Systems (LMSs).
- Direct and supervise the training content.
- Event management and management of logistics. (for classroom-based instructions).
- Basing standards and setting benchmarks to measure the effectiveness of the training.
- Delivering help desk services. (a single area of interconnection that acts as a learner’s request box).
- Delivering learning analytics.
- Training associated with government regulations. (For e.g., safety or environmental regulations).
- Training associated to employment laws. (For e.g., equal employment opportunity laws).
To be more specific outsourcing training and development also includes services like improving interpersonal skills, time management skills, business writing, collaboration, elaborate methods for work-life balance, delivery of business ethics, fundamentals of customer service and detailed study of Microsoft Office.
A study was conducted by Brian S. Klaas and Thomas W. Gainey. There has been an increase in the number of firms opting for an outside vendor to meet with their training and development needs. Strategic importance of outsourcing training and development of tasks may hold up some unique challenges. The authors used three methods of analysis for identifying the factors thought to impact
client satisfaction with the outsourced training and development: Transaction cost economics (TCE), social exchange theory and the research-based view. This was executed among 157 organizations. The findings were:
On an average 30% of the training was outsourced approximately on the overall training and spend around 26% of their training budget was spent on outsourcing. Also 58% of the companies agreed to using five or less outside trainers.
In terms of the kind of training, 25% of the organizations outsource management development programs and 23% outsource technical training.
Survey results showed that was no significant differences in client satisfaction in relation to the primary type of training that was outsourced.