1. PURE
DISCUSSION
WEBINAR
LEARNING CAFÉ
DISCUSSION
Outsourcing of Learning – Good, Bad,
Challenges & Opportunities
30 Aug 2012, Thursday, 12 – 1 pm

2. Webinar ID: 650198008
Date – Thus 30 Aug, 12 – 1 pm EST
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Access Code: 859-720-501
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Background Primer Zurich
the panel

6. Primer - Outsourcing
Approach
1 Undertaken by outside
supplier
Insourced Selective
2 Transfer of activities or
assets to an outside supplier
Significantly Completely
Activities undertaken by
3 suppliers but could have
been done internally
-> Off shoring
-> Near sourcing

7. Outsourcing of Learning
Components of Learning Function
Strategy & Design
Classroom
Online Learning
Learning
Leadership Online Learning
Trainers
Trg Content Mgt System
Business Process
Admin & records Support helpdesk Design

8. Dynamics are different
2011 Training Industry Report 2011

9. Selecting Outsourcing Vendor
KnowledgeWorking Outsourcing Selection Method

10. LET US TALK TO THE
PANEL

11. Can and should some or all
of learning be outsourced ?
Where do you stand as
business manager
and as a learning
professional ?

12. Is Learning a A or B or C player ?
A
• Strategically
important
B • Enhances revenues
• Supporting - • Compensation –
Supports A Performance
C • Compensation – Job
• Surplus Level
• Not much economic
impact
• Compensation –
Market price Outsource or eliminate
A Players or A Positions ? The Strategic Logic of Workforce
Management, Mark Huselid,, Richard Beatty & Brian Becker ,
HBR

13. Coffee Catch Up Ruminations
• L&D are not particularly good at
creating credibility about the
value they deliver, hence
outsourcing is considered.
• Maybe we also need to create
more value.
• Being part of HR means that
Learning does not get a seat at
the table and is considered an
add on.

14. What are your
observations on
outsourcing of learning in
Australia and Asia Pacific ?

15. Cape Group Research 2005
• Examined company trends in the outsourcing of
learning functions
• Interviewed vendors in the Asia Pacific region
• Key findings:
- Most commonly outsourced functions included
content development and technology infrastructure
- Outsourcing of entire learning functions was rare
- Main drivers for outsourcing included cost reduction,
to remain competitive and keeping up to date with
technology

16. Recent Research from US
• Survey of 790 US based organisations and educational institutions
(29% small companies, 40% midsize and 31% large) from various
industries
• The findings showed a significant rise in training outsourcing
spending: $606, 563, up from $257,871 in 2010
• On average, 23% of total budget is spent on outsourcing
• Average training budget spent on outsourcing is expected to stay
relatively stable in 2012 (79% organisations saying they will stay the
same)
• Number one driver is still cost reduction, but there is a longer term
focus on improving performance over years to come
• Other drivers include better management of resources, improved
quality of content development and delivery and achieving greater
geographic reach into foreign market
www.trainingindustry.com

17. Cape Group Research 2012
• Preliminary findings on Australian
organisations:
- Increase in adoption of SaaS to deliver
eLearning
- Similar to US, common outsourced
components are content development and
facilitation
- Unlike US, increase outsourcing of LMS
- Drivers for outsourcing include innovation,
reduced cost and increased demand
- Challenges in outsourcing are the ability of
vendors to meet client service standards,
building trust bet and communication barriers

18. Cape Group Research 2012
• Preliminary findings on Australian
organisations:
- Drivers for outsourcing include innovation,
reduced cost and increased demand
- Challenges organisations facing with
outsourcing include:
- the ability of vendors to meet client service
standards
- building trust with the vendors
- ensuring clear communication of requirements
- developing a strong partnering relationship

19. What has been the
impact of Strategy & Design
outsourcing on Classroom
Online Learning
various Learning
learning activities ? Leadership
Trg
Trainers
Online
Content
Learning
Mgt System
Business Process
i.e. classroom delivery,
e-Learning, leadership
Admin & records Support helpdesk Design
development and
learning logistics ?

20. What will the impact
of outsourcing on career
options and
opportunities availability for
learning professionals.
Do we need to develop
new skills and capabilities
to adapt to outsourcing ?

21. Topic for September
Turning to Asiapac for
A future looking
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capability framework
OR performance
for learning
frameworks & thought
professionals
leadership
Thursday 27 Sept,
Thursday
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12 – 1 pm EST
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