Chief Learning Officer - September 2007 - (Page 58)

business intelligence Figure 3: Learning Outsource by Audience 100% 80% 60% 40% 20% 0% 15% 13% 73% 13% 63% 25% 19% 11% 70% limited number of learning personnel available, these companies might find it difficult to keep pace with their own expectations and look to outsourcing learning. The ability to scale up learning resources as they are needed is a powerful benefit of learning outsourcing. The second-most commonly selected response by the BIB was “to gain access to better technical or training expertise.” Outsourcing affords a company the opportunity to access technical or learning expertise immediately, helping companies to respond to their development needs in a timely fashion. Other benefits of outsourcing are reducing cost, freeing up learning professionals to focus on more-strategic issues (such as better aligning learning objectives with corporate goals) and increasing competitiveness and speed to market. 2005 Company employees 2006 Company partners 2007 Customers Figure 4: Reasons for Not Outsourcing Learning Other Fear of job loss for trainers We do not have the measurements in place to be able to determine success Complexity of subject matter Outsourcing providers do not understand my company’s business Fear of losing institutional knowledge or intellectual property to outside provider Training function is decentralized Too expensive Do not want to lose control of training function My company does not do enough training to justify an outsourcing arrangement Satisfied with internal staff’s ability to meet training needs 0% 10% 20% 30% 2007 2006 Buyers Looking for Expertise Given that buyers look to an outsourcing solution as a means of attaining learning expertise, it is not surprising that learning and subjectmatter expertise rate as the two most important qualities buyers consider when selecting an outsourcing provider. Simply put, buyers want a provider that is knowledgeable about the topic and knows how to convey that knowledge in the most effective manner. These two qualities have essentially become the table stakes for competing in the learning outsourcing market today. Behind learning and subject-matter expertise, respondents felt “good cultural fit” is an important quality for an outsourcing provider to have. This speaks to the personal and intimate nature of learning, with more front-office functions of learning being outsourced. Although cultural fit might not be as important when selecting a provider to outsource technology management activities, it is more important for activities such as content development, which require interaction with company subject-matter experts, or learning delivery, where the selected provider will have frequent contact with employees. Other qualities companies look for are outsourcing providers that act as business partners, responsiveness, lowest price point and flexible structure agreement. BIB members find qualities such as financial stability and proven case studies less influential in their selection of a learning outsource provider. The head of business units making the decision to outsource learning remained constant at 17 percent to 18 percent of the total. Primary Reasons to Outsource: Scalability and Access to Expertise Susan Lee is a research analyst for IDC’s Learning Services Research Group, where she is responsible for research, writing and program development of the learning services market, and she helps clients understand market opportunities, buyer needs and learning trends. She can be reached at editor@clomedia.com. September 2007 Whether the key decision makers are CLOs or HR executives, the primary reason to outsource learning is the same: 29 percent of respondents selected “to deliver more training than internal resources could provide” as a top reason for looking to outsourcing (see Figure 2). A growing number of executives realize the contribution learning divisions can make to achieving business success, and as a result, they are putting heavier expectations on learning departments to keep their employees proficient and knowledgeable. In some cases, given the I www.clomedia.com I Chief Learning Officer 58 Majority of the Market Outsources Some Portion of Learning About two-thirds of CLO BIB respondents indicated their companies outsourced some or all of the learning function, consistent with the BUSINESS INTELLIGENCE continued on page 63 http://www.clomedia.com

Table of Contents Feed for the Digital Edition of Chief Learning Officer - September 2007

Editor's Letter Contents Letters to the Editor Strategies Selling up, Selling Down Take Five Imperatives Guest Editorial Learning Solutions Embarking on a Learning Journey Clo Profile Environment CIGNA Service Operations: Making Strategic Change Happen, and Making It Stick Tactics Black & Decker: On-Demand Learning Creation and Consumption Productivity The Army You Have Human Capital Holiday Inn Express: Delivering Critical Training Globally Case Study: Tegan Jones Business Intelligence Case Study: Lisa Rummler Advertisers' Index Editorial Resources In Conclusion

Chief Learning Officer - September 2007

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