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Much has been said about the pros and cons of Learning Outsourcing. And now, corporate decision makers are rapidly adopting this practice, hoping to fulfill the promise of “faster, better, cheaper” performance. However, we believe the business case is better illustrated by a more detailed equation:
For obvious reasons, many organizations focus on cost savings to justify an outsourcing model. The potential upside can be significant, if costs are reduced or eliminated in categories such as:
Nevertheless, focusing solely on cost reductions within your Learning budget can be extremely short-sighted.
Consider this: The typical corporation allocates less than 1% of its overall operating budget to Learning. Meanwhile, on average, labor costs absorb a whopping 70% of that same budget. So rather than squeezing costs from Learning’s relatively insignificant budget, why not focus on improving overall workforce performance – where even a fractional improvement can generate tremendous financial rewards?
As companies look for new sources of competitive advantage, it’s increasingly important to cultivate knowledge and skills among employees, partners and customers. Smart business leaders know that better-informed stakeholders can generate increased revenues and profits. Furthermore, they know that effective Learning requires ongoing investment in world-class tools and techniques. Therefore, rather than dismissing it as a costly luxury, today’s senior executives often appreciate Learning’s potential to fuel business success.
This “new view” of the Learning function has important implications for the way you plan and execute educational initiatives.Let’s say you’re ready to harness the power of outsourcing to enhance business performance. Where do you begin? The first step is to link Learning with corporate imperatives. This may be difficult—especially if you’ve operated in a relatively limited or isolated training role. However, this exercise is a legitimate opportunity to explore, discover and expand your reach.
Start with these steps:
If you need guidance to align your initiatives with corporate priorities, a Learning outsourcing consultant can be a valuable ally—especially during critical early-stage planning. Experienced consultants know how to avoid common pitfalls, so you can accurately assess your situation and develop a realistic roadmap.
If you hire a consultant, consider those who also provide full-service business process outsourcing and IT services. These firms offer more than theoretical models. They have first-hand, real-world insight to justify their recommendations. What’s more, they can quickly and seamlessly breathe life into your roadmap, once it’s approved.The critical question is this: When you’re ready to hire a Learning Outsourcing vendor, who should you call? That leads back to our cost/benefit equation – and another question of equal importance: Are your candidates able to deliver across each of these critical success factors?
With this formula as a reference, you can conduct a thorough strengths and weaknesses evaluation to determine how well prospective vendors fit your requirements. Although weighing vendor qualifications in advance requires an investment of your time and energy, the effort can pay for itself repeatedly throughout the life of a successful engagement.