Training Industry Magazine - Training Outsourcing 2015 Special Edition - (Page 30)

TRANSFORMING LEARNING AND DEVELOPMENT THROUGH TRAINING OUTSOURCING By Simon Vuillaume & Wolfgang Stein How can training outsourcing contribute to learning and development (l&d) transformation and performance? The primary motivation of L&D managers to opt for training outsourcing is cost savings. This is why the core offerings of many training outsourcing (TO) providers includes (1) standard training administration processes, (2) offshoring of training administration tasks, and (3) reduction of purchase costs (e.g., trainers, designers, learner management). Of course, TO providers propose a wider scope of services that includes consulting and support to assist organizations in defining and executing the L&D strategy. Cost reduction is always on the L&D managers' agenda, but there are also other critical objectives that fall within their responsibility, such as: º Improving the impact of learning on the business º Reducing time to competency º Expanding the global reach across the organization and external enterprise º Fostering a genuine corporate learning culture º Developing L&D's agility to keep up with the corporate strategy and with the day-to-day needs of the business, teams and individuals º Taking advantage of learning technologies With so much to consider, how do TO providers best meet the expectations of L&D managers today? How should TO providers adapt their value proposition? In order to respond to these questions, the proposed approach estimates the potential impact of the TO provider both on the Total Cost of Ownership (TCO) and on the L&D performance. To illustrate, we will consider a typical large, multinational company where training is almost always delivered face-to-face by external trainers. The estimated TCO breakdown is summarized as follows: 30 º Trainers fees: 50 to 70% º Training room and materials: 10 to 15% º Governance, strategy, catalog management: 5 to 10% º Training administration: 5 to 10% º Travel: 5 to 10% º Design and customization: 5 to 10% º Learning technologies: Less than 5% We have reviewed seven levers to improve L&D cost effectiveness: TRADITIONAL TRAINING BPO LEVERS 1| Competitive purchase: This is the lever we think of first when considering the weight of a purchase in the L&D TCO, which includes trainer fees, design, room rental, travel, materials and licenses. Nevertheless, we can see that its impact is less important than often expected, especially compared to the rationalization of the training offering. 2| Effective training administration: It has several impacts on TCO, time to competency and learning culture: (1) Improving the sessions fill-rate from seven to 10 participants helps to organize less sessions, thus resulting in a 30 percent savings

Table of Contents for the Digital Edition of Training Industry Magazine - Training Outsourcing 2015 Special Edition

Perspectives on Training Outsourcing
Table of Contents
Infographic
Be the CEO of Your Learning Organization
Training as a Service: Making Training More Effective & Profitable
Finding the Right Training Partner to Minimize Risk in High Consequence Environments
Proving Your Relevance: How to Flex More Muscle Through Outsourcing
Defining the Link between Performance and Results
Higher Value Outsourcing: Moving to an Integrated Workforce Development Model
Five Steps to Ensure a Successful Shift to Digital Learning
I Don't Really Know' is No Longer an Option
Choosing the Right Training Partner & Modality to Achieve the Best Results
Transforming Learning and Development Through Training Outsourcing
Setting the 'Gold Standard' in Video E-Learning
10 Lessons for Success in Managed Learning
How to Select a Provider for Outsourcing Training Services
Three Rules to Begin a Great Partnership with a Custom E-Learning Provider
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Training Industry Magazine - Training Outsourcing 2015 Special Edition