Key Points
- 45% of organizations currently outsource their learning and development (L&D) functions to leverage strategic partnerships rather than internal creation.
- Outsourcing training converts high fixed costs, such as full-time salaries and software licenses, into scalable, project-based variable costs.
- External vendors provide immediate access to niche technical expertise in Virtual Reality (VR), Augmented Reality (AR), and instructional design that may be lacking internally.
- Partnering with an L&D vendor accelerates speed to market by utilizing dedicated teams and streamlined development processes to launch programs faster.
With 45% of organizations now outsourcing their learning and development (L&D) functions, the shift from internal creation to strategic partnership is undeniable. While some companies have the internal capacity to build everything in-house, many face diverse training needs, tight budgets, and technical skill gaps, making training outsourcing the preferred option.
But is it right for you?
At Roundtable Learning, we partner with organizations to provide innovative training solutions, from instructional design to VR development, that boost employee productivity and confidence. We consult with clients daily to find the optimal solution that increases their bottom line.
This guide compares in-house vs. outsourced corporate training, unpacks the top 5 business benefits (and potential risks), and offers strategies for finding a trusted vendor.
Table of Contents
In-House vs. Outsourcing Training: What’s the Difference?
Before diving into the benefits, it is critical to understand the fundamental differences between these two approaches.
Developing L&D in-house means designing programs using your own resources and internal team. This typically requires hiring employees specifically for developmental roles. It is often beneficial for organizations seeking total control over content updates and protection of highly confidential information.
Outsourcing L&D means collaborating with an outside partner to create your training program. This is often the preferred option for companies with diverse training needs, strict timelines, or a lack of specific technical expertise (like VR or AR coding).
For a deeper dive into this comparison, read our guide on In-House vs. Outsourced Learning and Development.
At a Glance: In-House vs. Outsourced
|
Feature |
In-House Development |
Outsourced (e.g., Roundtable Learning) |
|
Cost Structure |
High fixed costs (Salaries, Benefits, Software Licenses) |
Variable costs (Project-based, Scalable) |
|
Expertise |
Limited to the skills of current staff |
Access to diverse, niche experts (3D Artists, IDs) |
|
Turnaround |
Slower; limited by internal bandwidth |
Faster, dedicated teams and streamlined processes |
|
Control |
High control over the daily process |
Collaborative; reliance on vendor partnership |
5 Key Benefits of Outsourcing Training (And How Roundtable Delivers)
Why do so many organizations choose to partner with vendors like Roundtable Learning? Here are the top five business benefits.
1. Lower Development Costs & Predictable Budgets
A significant benefit of outsourcing training is the ability to select vendors that fit your specific budget. In fact, outsourcing can be significantly less expensive than in-house development because you avoid the high overhead of maintaining an internal team.
When you partner with Roundtable Learning, you eliminate the need to pay for:
- Salaries and benefits for full-time experts who might not be busy year-round.
- Expensive software licenses are required to develop specialized content (e.g., Unity, Adobe Suite).
- Hardware and equipment for every training modality.
For example, the cost of custom virtual reality training can be high if you are starting from scratch internally, but outsourcing allows you to leverage existing infrastructure. Instead, your internal employees can focus their energy on core business tasks, saving your organization time and resources.
2. Access to Niche Experts (VR, AR, & ID)
No internal team has expertise in every aspect of modern training development. For example, while an internal instructional designer may excel at eLearning, they may lack the technical skills to build Extended Reality (XR) or blended learning programs.
Outsourcing gives you immediate access to experts with diverse skill sets, including:
- Instructional Designers
- Visual Designers & 3D Artists
- Courseware Developers & Programmers
- Project Managers
Partners like Roundtable Learning bring an edge to your project because our specialists understand industry trends and learning theories, ensuring your program is built on best practices.
3. Mitigate Safety Risks with Verified Scenarios
Corporate training outsourcing services can actually help you mitigate real-life safety risks. Industry experts, such as those at Roundtable Learning, are equipped to create realistic training scenarios that an internal team might overlook.
For instance, if a vendor specializes in supply chain training programs, they have the experience to create highly accurate activities that address specific hazards. This expertise better protects your employees from liability and injury by ensuring the training content is tested and relevant.
4. Flexibility (No Long-Term Commitment)
Outsourced L&D allows you to bring in experts on a project-to-project basis, avoiding the burden of long-term commitments. With flexible contracts, you can scale up for a significant initiative and scale down afterwards, or change terms if the project direction shifts.
While we aim to be a partner you can continually rely on, outsourcing ensures you are never stuck with overhead you don’t need.
5. Speed to Market: Launch Training Faster
Depending on your partner, outsourcing often results in a faster development cycle than in-house work.
Roundtable Learning leverages experienced teams and streamlined processes to minimize challenges and delays. This efficiency enables a faster turnaround, allowing you to implement critical training and see results sooner.
Potential Disadvantages of Outsourcing Training (And How to Solve Them)
To make an informed decision regarding the advantages and disadvantages of outsourcing training, you must also consider the potential risks and how to mitigate them.
1. Perceived Loss of Control
Handing over your training to a third party can feel like losing control over the final product.
- The Solution: Choose a partner that prioritizes collaboration. At Roundtable, we use iterative reviews to ensure you maintain creative control at every milestone.
2. Lack of “Insider” Knowledge
An external vendor may not immediately understand your specific company culture or internal jargon.
- The Solution: A thorough onboarding and discovery phase is critical. We work with your Subject Matter Experts (SMEs) to capture the nuance of your brand voice before development begins.
3. Communication Barriers
Working with a vendor in a different time zone or without a dedicated point of contact can lead to delays.
- The Solution: Always look for a vendor that provides a dedicated Project Manager. This ensures a single stream of communication and keeps projects on track.
Top Corporate Training Outsourcing Services You Can Leverage
When we talk about “outsourcing,” it isn’t an all-or-nothing decision. You can outsource specific components of your training based on your needs:
- Instructional Design: Outsourcing the curriculum mapping and needs analysis to ensure pedagogical soundness.
- Virtual Reality Training: Leveraging a vendor for the heavy technical lift of 3D modeling and coding while your team handles the soft skills content.
- Augmented Reality Training: Using partners to build overlays for equipment maintenance or onboarding.
- LMS Administration: Using a partner to manage the technical backend of your Learning Management System.
4 Tips to Find the Right Training Partner
Finding a trusted vendor can be overwhelming, but following these steps can help you find a successful partner.
- Examine their portfolio: Explore potential vendors’ websites to uncover their specific services and work history. Does their style match your vision?
- Ask pricing questions upfront: Avoid sticker shock by asking about the pricing model (hourly vs. fixed project) early in the conversation.
- Research case studies: Read case studies and client testimonials to learn about their past successes and how they handled challenges.
- Read reviews and ratings: Look for unbiased feedback on sites like Glassdoor, Yelp, and eLearningIndustry.
Conclusion
Whether you are looking to reduce costs, access niche expertise, or simply get training to your learners faster, outsourcing training offers compelling business benefits.
Are you looking to outsource your organization’s training, or are you just curious about what a partnership could look like?
Consult one of our experts at Roundtable Learning or book your immersive learning demo today to see the difference a dedicated partner can make.
FAQ
What is the difference between in-house and outsourced training development?
In-house development relies on internal staff and resources, offering the organization total control over content updates and confidentiality. Outsourced training involves collaborating with an external partner to build programs, which is often preferred for projects requiring strict timelines or specialized technical skills like VR coding.
What are the primary benefits of outsourcing corporate training?
Outsourcing offers significant cost savings by eliminating the overhead of internal salaries and equipment while providing access to specialized experts in instructional design and immersive technology. Additionally, it provides flexibility through project-based contracts and ensures a faster speed to market for critical training initiatives.
What are the common risks of outsourcing L&D functions?
The main risks include a perceived loss of creative control over the final product and potential communication barriers regarding company culture or internal jargon. These risks can be effectively mitigated by selecting a vendor that offers iterative reviews and dedicated project managers to ensure alignment.
