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    Training and Development: To Outsource or Not To Outsource

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    oskarjohansson
    The document discusses the considerations around whether companies should outsource or conduct training and development in-house. It outlines pros and cons of each approach, such as in-house allowing customization but being costly, while outsourcing providing expert knowledge but risking loss of control. Ten questions for firms to consider are presented, such as assessing internal training capacity and whether the content changes rapidly. The conclusion is that there are merits to both options and sometimes a combination is best.

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    Training and Development: To Outsource or Not To Outsource

    Uploaded by

    oskarjohansson
    6 views6 pages
    The document discusses the considerations around whether companies should outsource or conduct training and development in-house. It outlines pros and cons of each approach, such as in-house allowing customization but being costly, while outsourcing providing expert knowledge but risking loss of control. Ten questions for firms to consider are presented, such as assessing internal training capacity and whether the content changes rapidly. The conclusion is that there are merits to both options and sometimes a combination is best.

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    Presentation on training and developmment.

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    Training and Development

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    The document discusses the considerations around whether companies should outsource or conduct training and development in-house. It outlines pros and cons of each approach, such as in-house allowing customization but being costly, while outsourcing providing expert knowledge but risking loss of control. Ten questions for firms to consider are presented, such as assessing internal training capacity and whether the content changes rapidly. The conclusion is that there are merits to both options and sometimes a combination is best.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    6 views6 pages

    Training and Development: To Outsource or Not To Outsource

    Uploaded by

    oskarjohansson
    The document discusses the considerations around whether companies should outsource or conduct training and development in-house. It outlines pros and cons of each approach, such as in-house allowing customization but being costly, while outsourcing providing expert knowledge but risking loss of control. Ten questions for firms to consider are presented, such as assessing internal training capacity and whether the content changes rapidly. The conclusion is that there are merits to both options and sometimes a combination is best.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 6

    Training and

    Development
    To Outsource or Not to Outsource

    Why do Firms Outsource?

    Classic "make-or-buy" business decision.

    Develop a modularization strategy for the business.

    Subsidiary is politically, culturally, and/or geographically distant from home


    nation.

    In-house

    Pros

    Company culture specific

    Customizable

    Retaining important information

    Cons

    Costly

    Time consuming

    Knowledge

    Outsource

    Pros

    Expert knowledge

    Improve Scalability of Resources

    Speed to Market

    Reduce Fixed Costs

    Cons

    Risk of revealing company trade secrets

    Communication difficulties

    Loss of control

    Conclusions

    10 Questions to consider: (Johnson, Gail, 2004)


    1.

    What are the capabilities of your training organization? Do you hire it or grow it?

    2.

    What's your internal training capacity?

    3.

    Is the training proprietary?

    4.

    Does your company value its training organization?

    5.

    Does the content change rapidly?

    6.

    Are the outsourced trainers viewed as experts? And is that a good or a bad
    thing?

    7.

    (Did you do your homework?)

    8.

    Are you handing over the entire training function?

    9.

    Is there a hidden agenda?

    10.

    Have you considered a combination?

    References
    Johnson, and Gail, (2004). To Outsource Or Not to Outsource...That Is The Question.Training,
    41(8), pp.26-29.
    Shih, H. and Chiang, Y. (2011). Exploring the effectiveness of outsourcing recruiting and training
    activities, and the prospector strategy's moderating effect.The International Journal of Human
    Resource Management, 22(1), pp.163-180.
    Mol, M. J. and Brewster, C. (2014), The Outsourcing Strategy of Local and Multinational Firms: A
    Supply Base Perspective. Global Strategy Journal, 4: 2034. doi: 10.1111/j.20425805.2013.01070.x
    Anderson, C. (2008). Training Outsourcing on the Decline.Chief Learning Officer, September.
    Crumpton, M. (2011). Making the case for in-house training.Bottom Line: Mg Lib Finances, 24(3),
    pp.167-172.
    Trainingindustry.com, (2014).10 Reasons Companies are Outsourcing Training in Today's Market.
    [online] Available at: https://www.trainingindustry.com/blog/blog-entries/10-reasonscompanies-are-outsourcing-training.aspx [Accessed 21 Nov. 2014].

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