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Outsourcing the Learning Function: Seven Key Questions to ask before purchasing learning from an outside vendor white paper by Krish Dhanam and Jill Tibbels

Ensuring training makes the leap from education to performance and profits is essential in today's marketplace. What can companies do when evaluating the myriad of options available?

Knowledge is power. This is an old adage that has been around for a long time. However, now more than ever it is true. As Eric Hoffers says, "In times of change the learner shall inherit the earth, while the learned finds themselves beautifully equipped to deal with a world that no longer exists." With technology advances, and the market becoming more and more competitive it is critical that an organization has a workforce that is not only skilled, but is constantly improving those skills.

No business can expect growth tomorrow while it rests on the successes of yesterday. Management expects and even demands performance efficiency increases. This can only come from a culture where learning is valued and encouraged.

The Challenge of Selecting Performance-Driven Training

You may have been given the task to create this environment and/or feed this environment of learning. No training department can be the answer to everyone's needs. A 2002 report by The Conference Board found that 55% of companies outsource part of the training function.

There are many instances when you should go outside the expertise of your organization and look for learning providers. But one quick search on the internet is enough to send you running for cover! It is staggering how many vendors there are that want to teach your staff the "art of..." just about anything.

From sales to forklift safety from OSHA compliance to training in tropical diseases. You name it you can find someone who is willing and even eager to come to your organization and teach your staff about it.

Selecting an effective training program is a complex process that requires diligently matching an organization's needs to its employees' needs and aligning both of these to create desired outcomes - usually improved performance and increased profits.

The process is complex because effective training utilizes a company's style, voice, mission and many other customized elements that are not available in off-the-shelf training options. What enterprises truly want is to equip their work force with information that works in the moment and provides a real time benefit to a specific product or service.

Benefits of Outsourcing your Training

Why should you outsource your training when you probably have many qualified Subject Matter Experts (SME) in your organization? Outsourcing parts of your training function can have many benefits for your organization.

The potential of saving your organization money in the long run is probably the biggest factor that motivates most businesses to outsource. Sure you can take your SME's off their regular jobs to develop content for specific training your staff needs, but the cost of lost productivity plus the SME's lack of knowledge of sound education principles usually spells disaster for the final learning product.

By outsourcing you save not only money in lost productivity, but you also cut back on expenditures of software, printing costs etc. You place the burden of those fixed costs on the vendor and only pay a per use charge. Many times this will save an organization thousands of dollars.

You also gain the benefit of having your staff focus on what they know best - your business. While some of the learning that takes place in your organization is very specific to your business, a large part of the training you need can be done by an outside vendor more efficiently and with greater expertise. Your staff is freed up to focus their valuable time and attention on improving your products and services to the benefit of your customers and your bottom line.

Just as you are focusing on your business, a good training vendor is focusing on their business - learning. Many times an outside vendor will have cutting-edge technology or the latest development in a certain topic. Take advantage of their research.