PRESENTED BY: David Wentworth, Sr Analyst, Brandon Hall Group April, 2012

Client logo hereExpanding Learning Development Capabilities:Global Outsourcing Done Strategically

Agenda

• The Business Process Outsourcing Landscape

• Offshoring destinations and advantages

• Outsourced content creation framework

• E-Learning Offshoring Best Practices

Offshoring vs. Outsourcing

Outsourcing

Offshoring

Captive Center Nearshoring

Homeshoring

Insourcing

Offshoring is Booming Again

Worldwide demand for HR business process outsourcing services will grow from $30.4 billion in 2010 to $38.6 billion in 2015. Payroll services will comprise the largest amount of spending, whereas benefits administration and hiring and recruiting outsourcing will grow the fastest.

Gartner

Destination: e-Learning

Source: ValueNotes Research Report: e-learning Outsourcing

Offshoring Drivers

• Cost• Access to technology• Access to expertise• 24 hour work cycle• Presence in global markets

Offshoring Drivers

Source: Offshoring of Software Development, Kramer, Dedrick & Dunkle, 2010

Offshored Content Creation Risks

• Loss of content control• Quality concerns• Security• Infrastructure• Scope/cost creep• Cultural mismatch• Political unrest

Cost Savings Statistics

Front E

nd Analysis

Instructi

onal Desi

gning

Storyb

oarding

Graphic P

roducti

on

Video Pro

duction

Audio Producti

on

Authoring &

Progra

mming

QA & Te

sting

Projec

t Man

agem

ent

SME /

Stak

eholder

Review

s

Pilot T

estOther

05

1015202530354045

US Effort Offshore Effort

Front E

nd Analysis

Instructi

onal Desi

gning

Storyb

oarding

Graphic P

roducti

on

Video Pro

duction

Audio Producti

on

Authoring &

Progra

mming

QA & Te

sting

Projec

t Man

agem

ent

SME /

Stak

eholder

Review

s

Pilot T

estOther

0500

100015002000250030003500

US Cost India Cost

Cost Saving Stats for Turnkey Projects (1 hour e-Learning)

Roughly 50% to 60% savings (McKinsey & Company) US Cost vs. Offshore Cost: $18,582:$7,136

Source Citation: Chapman, B. (2010). How Long Does it Take to Create Learning? [Research Study]. Published by Chapman Alliance LLC. www.chapmanalliance.com

Cost Savings Statistics

Front E

nd Analysis

Instructi

onal Desi

gning

Storyb

oarding

Graphic P

roducti

on

Video Pro

duction

Audio Producti

on

Authoring &

Progra

mming

QA & Te

sting

Projec

t Man

agem

ent

SME /

Stak

eholder

Review

s

Pilot T

estOther

05

1015202530354045

US Effort Offshore Effort

Cost Saving Stats for Production Projects (1 hour of e-Learning)

Roughly 35% to 45% US Cost vs. Offshore Cost: $18,582:$11,540

Front E

nd Analysis

Instructi

onal Desi

gning

Storyb

oarding

Graphic P

roducti

on

Video Pro

duction

Audio Producti

on

Authoring &

Progra

mming

QA & Te

sting

Projec

t Man

agem

ent

SME /

Stak

eholder

Review

s

Pilot T

estOther

0500

100015002000250030003500

US Cost India Cost

Source Citation: Chapman, B. (2010). How Long Does it Take to Create Learning? [Research Study]. Published by Chapman Alliance LLC. www.chapmanalliance.com

Cost Savings StatisticsCost Saving with Offshore Development (24 hours of

asynchronous online)

$332,280 vs. $ 154,588 (total saving = $177,692) US Cost vs. Offshore Cost: Savings of 55%

Client P

rojec

t Man

agem

ent

Instructi

onal Desi

gning

Storyb

oarding

Graphic C

reation, m

odification

Audio Producti

on

Producti

on of Scre

ens

QA & Te

sting

Projec

t Man

agem

ent

Pilot T

est

SME C

ost0

10000

20000

30000

40000

50000

60000

70000

80000

12000

57600

72000

34560

14400

57600

21600

27000

11520

24000

36000

12096

20736

92164608

18432

53767516.8

4608

36000

US Cost India Cost

International Service Level Agreements Milestones & Deliverables Intellectual Property Rights Indemnity & Confidentiality Legal and Financial Aspects

LegalIP lawsLabor laws

Calamities Political unrestNatural disasters

Costs Project Fee Unit Fee (For Recurring / Change Orders) Payment terms and milestones

SLA MaintenanceChanges to ClausesTerms post Execution

Tasks & Responsibilities (Provider) Tasks & Responsibilities (Client) Service Level Break-Down

Service Window Service Monitoring Contingency Performance Security Reporting Personnel

Offshoring Process Flow

Assessment Build Benchmark OperationPlanningDISCIPLINES

Governance

Infrastructure

Staffing

Delivery

P R O J E C T M A N A G E M E N T O F F I C E (P M O)

Human Resource Management

Continuous Improvement

Offshoring Process Flow Execution

.• Client Kick-Off

.• Instructional Design

.• Storyboard Development

• Client SB Review

• Production

• QA & Testing

• BETA

• Client Review

• BETA Fixes

• Gold

Vendor Selection Due Diligence

• Create a short list of providers• Develop use cases• Scripted demos• Talk to current customers• Write the RFP• Evaluate the proposals

Key Considerations

• Build business case– Cost– Strategic focus– Quality

• Identify stakeholders• Selection team, implementation team, governance team• Length of Term• Service level agreements• Benchmarks• Prepare for backlash• Clear, consistent, and continuous communication

Thank You

For e-Learning Offshoring please contact G-Cube

at info@gc-solutions.net or +91-120-4122228.

Visit: www.gc-solutions.net