The Top 5 Business Benefits To Outsourcing Corporate Training And Development
Read Time: 5 minutes
Outsourced training and development is the preferred option for organizations with diverse training needs, time and budget constraints, and a lack of technical expertise. While some organizations have the capacity and resources to develop training in-house, others may choose to outsource.
The top 5 business benefits to outsourcing your learning and development (L&D) are:
- Develop Training at a Lower Cost
- Access Experts with Diverse Skill Sets
- Mitigate Safety Risks with Industry Experts
- Short-Term Commitment to Developers
- Faster Turnaround Time for Development
45% of organizations outsource learning and development (L&D) for a variety of reasons, such as a reduced cost and short-term commitment to developers. Have you considered the business benefits outsourced training could bring to your organization?
At Roundtable Learning, we partner with organizations to provide innovative training solutions that boost employee productivity and confidence. We consult with our clients to understand their training needs and develop the optimal training solution that boosts their bottom line.
This article will compare in-house vs. outsourced corporate training, unpack the top 5 business benefits of outsourced training, and provide 4 tips to find a trusted vendor.
What’s The Difference Between In-House vs. Outsourced Training?
Developing L&D in-house means that an organization designs L&D programs with its own resources and internal team. Organizations that develop internal training programs typically have an in-house team or hire employees specifically for developmental roles.
In-house L&D is beneficial for organizations looking to:
- Have more control over the development process and content updates
- Manage costs more effectively
- Avoid sharing confidential information
Outsourcing L&D efforts means that an organization collaborates with an outside partner to create a training program. Outsourcing is the more preferred option for organizations with diverse training needs, time and budget constraints, and a lack of technical expertise in multiple areas.
Outsourcing training comes with the following benefits:
- Access to experts
- Brings in experts on a project-to-project basis
- Faster turnaround time for development
Regardless of whether training is developed internally or externally, it’s essential that organizations have the appropriate personnel, budget, and timeline to produce high-quality, sustainable training.
The Top 5 Business Benefits To Outsourcing Training
1. Develop Training at a Lower Cost
A major benefit to outsourced training is that organizations can examine the costs from multiple vendors, then make the right selection according to their budget. Outsourcing training is about 30% less expensive than in-house development because organizations don’t need to cover in-house development costs, including:
- Equipment requirements for every modality that your program requires
- Required software to support and develop content for each modality
- Paying for benefits and salaries of in-house experts on payroll
- Consistently keeping experts busy building training
In terms of personnel, outsourced development avoids the need to hire internal training experts and instead utilizes the time and energy of L&D experts outside your organization. Internal employees that would’ve been used to develop a program in-house can instead direct their attention elsewhere throughout your organization, saving the time and energy of your workforce.
2. Access Experts with Diverse Skill Sets
Another major business benefit to outsourced training is that organizations can outsource training to experts who have a strong background in training, instructional design, authoring software, and more. One team within your organization may not be experts in every aspect of your training program’s development.
For example, organizations that want to implement a blended learning program may not have the expertise internally to create such a program. While an internal instructional designer will be able to build an eLearning course, they may not have the expertise to work with more advanced technology for training, such as extended reality (XR).
Training development experts may have any of the following job titles:
- Instructional Designers
- Project Managers
- Visual Designers
- Courseware Developers
These specialists with diverse skill sets will have an edge over internal employees because they know industry trends, relevant learning theories, and can advise organizations on best practices fit to their learners’ needs.
3. Mitigate Safety Risks with Industry Experts
Outsourced training helps organizations mitigate real-life safety risks because industry experts will create training that better prepares employees for their role. Experts in L&D are equipped with the relevant knowledge and ideas to create realistic training scenarios that your organization may not think about.
For example, a vendor may specialize in supply chain training programs. Given the organization’s past working in this space, they have the expertise to create the most relevant, accurate training activities. This training better protects employees from liabilities and prepares them for safety risks because these experts know what’s best to include in training to reduce unnecessary cost and injury.
4. Short-Term Commitment to Developers
Outsourced L&D brings in experts on a project-to-project basis, which avoids any long-term commitment with a development team. With flexible contracts, organizations can exit a contract or change terms with their vendor if they aren’t satisfied with the progression of the project.
While the timeline for each training program’s development varies, organizations that outsource don’t need to feel burdened by a long-term commitment to any single vendor. Ideally, an organization will find a vendor who they can continually rely on for their training needs.
5. Faster Turnaround Time for Development
Depending on your partner, outsourced L&D may have a quicker development time compared to in-house development. This is because outsourced developers have more streamlined processes with a minimum number of challenges and delays.
Outsourcing training leverages more experienced teams that are more productive and efficient, creating a faster turnaround time for the project’s development. This allows organizations to stick to their schedule and implement training at their organization in a timely manner.
4 Tips To Find A Trusted Vendor For Outsourcing
Finding a trusted vendor for your L&D needs can be an overwhelming process, but luckily we have 4 recommended steps that your organization can take to find a successful partner.
- Examine their portfolio — Explore potential vendors’ websites or other social channels to uncover their products, services, and work history.
- Ask pricing questions upfront — To avoid a shock later in the project’s journey, your organization should ask your vendor about the pricing of a potential program upfront.
- Research case studies — Read case studies or client testimonials on the vendor’s website to learn about the successes and shortcomings of their past projects.
- Read reviews and ratings — Research reviews and ratings of a potential vendor across popular review sites, including Glassdoor, Yelp, and eLearningIndustry.
Are You In Or Out For Outsourced Training?
Throughout this article, we’ve explored the top 5 business benefits to outsourced training and provided 4 tips for finding a trusted vendor.
Are you looking to outsource your organization’s training or are you curious about the benefits outsourced training may bring to your organization? Consult one of our experts or book your immersive learning demo today.