Outsourcing the Training Function: A Growing Trend

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November 30, 2004 10:00 am PT Outsourcing the Training Function: A Growing Trend Facilitators: Brandon Hall, Ph.D. Chief/Lead Researcher (408) 736-2335 info@brandon-hall.com A.G. "Buzz" Bainbridge Managing Director Associates and Channels The TRACOM Group buzz.bainbridge@reedbusiness.com

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The INs and OUTs of Outsourcing: Questions We'll Answer Why outsource? Who are the significant players? What are their esteem suggestions? Where do I begin? How would I oversee outsourcing… and desires?

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Main objective: minimize altered costs Fixed costs versus variable costs Why Outsource?

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Other Drivers Save cash and track costs You're overwhelmed Desire for consistency Link learning with business technique Lack of assets Lack of aptitude Integration troubles Keeping up with innovation

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Do I have some other alternatives? Redo your current learning procedure Corporate shared administrations Outsourcing must be the best answer for the issues you face, or you shouldn't do it.

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Learning from Case Study: Reasons for Outsourcing Just driving expenses out? Move from ILT to e-learning? Extend abilities?

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What Do Outsourcing Companies Do? As meager or as much as you need

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Levels of Outsourcing Levels extend from . . . the most straightforward and slightest unsafe, . . . to the most mind boggling and costly Out-entrusting Administration and Support (back office) End-to-end Training Outsourcing

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Value Proposition: Why Executives are Interested Cost funds Vendor administration Content advancement Fixed costs Latest innovation for system and e Learning and business ability Core competency

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Accenture Learning Convergys Exult General Physics IBM ACS The Players Intellinex Intrepid Learning Solutions KnowledgePlanet Raytheon Professional Services GeoLearning, Inc

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Full outsource Business interlock Global reach and scale Major customers Avaya GE Consumer Finance Citrix Accenture Learning - NYC

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HR-Outsourcing + Training DigitalThink obtaining Offshore substance improvement Major customers Circuit City State of Florida State of Texas Convergys - Cincinnati, OH

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HR-Outsourcing + Training Acquired by Hewitt SumTotal Systems establishments Major customers British Petroleum McKesson Exult – Irvine, CA

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Early contract with GM Full learning outsource ISO 9000:2000 enrolled Major customers Ford Motor Company Texas Instruments Pfizer – new contract General Physics – Elkridge, MD

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Acquired PWC Consulting Full learning outsource w/worldwide achieve Lotus Learning Management System Align learning with technique Major customers eArmyU Cingular Swedish Railroads IBM Learning Services – Armonk, NY

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New business propelled with Lguide Privately held 100% concentrated on preparing outsourcing Major customer Boeing Intrepid Learning Solutions – Seattle, WA

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Hosted endeavor learning suite Training back-office operations "Running Training like a Business" Major customers BMW Financial Services Marsh, Inc ChevronTexaco Corporation KnowledgePlanet – Mechanicsburg, PA

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Trained US pilots in the 30's Auto industry trng – NA, Europe, Asia-Pac Global scale and achieve Major customers GM Lockheed Martin ChevronTexaco Corporation Raytheon Professional Services – Dallas, TX

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IT Outsourcing roots ILT into e-learning HR with preparing outsourcing Major customers Motorola Goodyear Tire & Rubber Company ACS, Inc – Dallas, TX

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IT Outsourcing roots GeoLearning stage E-learning mastery Major customers State of New Jersey U.S. Office of Personnel Management GeoLearning, Inc. – Des Moines, IA

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Example: Outsourcing Training or HR? Numerous organizations offer packaging so both capacities can be outsourced Potential cost reserve funds if HR is outsourced Potential cost investment funds if preparing is outsourced

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What merchants assert versus what you can expect Claimed: half lessening in costs Expect: 10-15% decrease

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Learning from Case Study: Circuit City First activity: 50 courses HR framework was coordinated with conveyance stage Trainees discovered courses fun and advantageous Costs were cut altogether: normal preparing time slice from 200 hours to 68 Accessible courses roused workers to finish additionally preparing

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Case Study: Avaya and Accenture Learning Delivery of learning in 90 nations LMS and entrance – up in 4 months 200 Avaya staff joined Accenture Learning Portion of preparing that is e-learning: 23% preceding versus 81% now Time for learners to end up capable: 60% less time now

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Costs Involved with Outsourcing Basic recipe: The outsourcing merchant regularly may construct the cost in light of foreseen investment funds

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Typical Timeframe Needs evaluation: a while Implementation: ordinarily 2-6 months

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Where do I begin? Get your work done: Calculate current costs Identify your realizing methodology What are corporate destinations? In what capacity will you gauge the goals? Imply: Let the seller help you do the appraisal.

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Learning from Case Study: Outsourcing Led to Strategy Change Major move: dispatched deals compel versus hourly Better client benefit Savings assessed at $130 million

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Will People Lose Their Jobs? Staff lessening is normal with far reaching outsourcing While cutbacks are frequently seen as terrible for individuals, it's useful for the organization It's basic for some staff to be consumed by the merchant to help with various outsourcing ventures

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Benefits of a trial extend: Less cash contributed Less time contributed Opportunity to reconsider objectives

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Managing the Vendor: Things to Know What you need (cost funds or change to execution?) That the arrangement is debatable after the investigation stage (both customer and seller) Don't disparage the significance of the relationship

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Managing Your Organization: Things to Do Get purchase in from official level Assign a guard Keep control of your methodology Hold on to your protected innovation

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Learning from Case Study: Benefits of Buy-in CEO was among the first to take the new courses Other divisions are avid for e-learning

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Conclusion Outsourcing – Fad or digging in for the long haul?

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More Info: www.brandon-hall.com