LEARNING CAFÉ DISCUSSION

Outsourcing of Learning – Good, Bad, Challenges & Opportunities30 Aug 2012, Thursday, 12 – 1 pm

PUREDISCUSSION

WEBINAR

Participants ToolbarWebinar ID: 650198008Date – Thus 30 Aug, 12 – 1 pm ESTTelephone Conf CallTelephone Conf Call - +61 2 8014 4933 Access Code: 859-720-501

Any questions please send it via Q&A box or raise your hand.Phones or PC speakers on mute till you are ready to speak.This session is being recorded for replay.

This is a discussion amongst peers, we would love your thoughts and comments.

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Panel

Background Primer Chat with the panel

Dion Groeneweg

Director – The Cape Group

Tim Wilding Head of

Organisational Devp & Trg –CommInsure

Jeevan Joshi

Producer

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Helping out - Robin Petterd & Divya Ramachandran

Primer - Outsourcing

Insourced Selective

Significantly Completely

Approach

1 Undertaken by outside supplier

2 Transfer of activities or assets to an outside supplier

3Activities undertaken by suppliers but could have been done internally

-> Off shoring-> Near sourcing

Outsourcing of Learning

Classroom Learning

Online Learning

Online Content

Learning Mgt System

Leadership Trg Trainers

Business Process

Admin & records Support helpdesk

Strategy & Design

Design

Components of Learning Function

Dynamics are different

2011 Training Industry Report 2011

Selecting Outsourcing Vendor

KnowledgeWorking Outsourcing Selection Method

LET US TALK TO THE PANEL

Can and should some or all of learning be outsourced ?

Where do you stand as business manager and as a learning professional ?

Is Learning a A or B or C player ?

C• Surplus• Not much economic

impact• Compensation –

Market price

B• Supporting -

Supports A• Compensation – Job

Level

A• Strategically

important• Enhances revenues• Compensation –

Performance

A Players or A Positions ? The Strategic Logic of Workforce Management, Mark Huselid,, Richard Beatty & Brian Becker , HBR

Outsource or eliminate

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.

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

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

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

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

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

What has been the impact of outsourcing on various learning activities ?

i.e. classroom delivery, e-Learning, leadership development and learning logistics ?

Classroom Learning

Online Learning

Online Content

Learning Mgt System

Leadership Trg Trainers

Business Process

Admin & records Support helpdesk

Strategy & Design

Design

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 ?

Turning to Asiapac for learning &

performance frameworks & thought

leadership

Topic for September

A future looking capability framework

for learning professionals

Thursday 27 Sept, Thursday

12 – 1 pm ESTRegister

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