Chief Learning Officer- September 2008

FIGURE 1: HAS YOUR COMPANY OUTSOURCED ANY PART OF ITS TRAINING FUNCTION? were custom content design/ development, training deliv80 ery, strategy development, ■ Yes program oversight and learn60 ■ No ing technology management. 40 Reporting and measurement was a not-too-distant sixth 20 choice. 0 Figure 2 compares the im2008 2007 portance of training functions Source: CLO BIB Training Outsourcing Survey, June 2008 against the training functions most frequently outsourced in an effort to determine if FIGURE 2: THE MOST IMPORTANT TRAINING ACTIVITIES highly important, or lesser VS. ACTIVITIES OUTSOURCED important, training functions are the ones chosen for 80 outsourcing, or if it is related ■ Activity importance to front- or back-ofﬁce func■ Activity outsourced tions. There appears to be a 60 correlation between the importance of the activity and 40 activities outsourced for the three areas of custom content, 20 training delivery and LMS. However, those training functions that are highly im0 portant but require the transfer of management responsibilities to execute — such as strategy development, program oversight and reporting and measurement — show low popularity for outsourcsourcing, with about half spending between 10 pering. It seems that companies are using external traincent and 40 percent of their training budget. Coning providers primarily for activities that are imporversely, only 20 percent spend more than 40 percent tant but do not require the transfer of management of their budget, and the 3 percent who spend more authority. than 80 percent are probably mostly organizations The top two reasons to outsource, by a clear mathat outsource the entire training function. jority of companies, were to deliver more training For 2009, 85 percent of companies expect spend- than internal resources can provide and to access exing on training outsourcing to increase or remain the pertise. These reasons remain consistent from 2007. same. This indicates that while the number of com- Reducing costs, the third most popular reason, also panies that are outsourcing have declined this year, is an important beneﬁt from outsourcing, and it has the companies that are outsourcing are satisﬁed with become more important to enterprises, while speed their use of external training providers. Only 15 per- to market has dropped in importance. Both of these cent of companies indicated their training outsourc- changes appear to be tied to the current economic ing budgets will decrease next year. situation as organizations seek to “hunker down” rather than pursue new opportunities. Outsourcing and Management Control Those companies that are outsourcing training In an effort to further determine why certain functions primarily to supplement internal resources training activities are outsourced, managers were do so to have training resources available on an asasked to identify the top ﬁve most important overall needed basis. Companies looking to deliver training training functions. These, in order of importance, beyond the capabilities of internal resources consider sig Custo n/d m eve con lop ten me t nt Tra inin gd eliv Str ery ate gy de vel op me nt Pro gra mo ver sig Lea ht rnin gt ech ma nag nolo em gy ent Re po me rtin asu g a rem nd Ven ent do rm ana ge me nt de cs En ma rol nag lme em nt ent Log isti Chief Learning Ofﬁcer • September 2008 • www.clomedia.com 63 http://www.clomedia.com

Table of Contents Feed for the Digital Edition of Chief Learning Officer- September 2008

Chief Learning Officer Editor’s Letter Contents Connections Imperatives Selling Up, Selling Down Strategies Take Five Lifestyle Learning: Improve the Bottom Line With Behavioral Education Tracom’s Social Style Model CLO Profile IOL: Determining the Impact of Learning Communicating With the Boss About Impact Mission Accomplished? Measuring Success of Corporate Universities Borrowing Measurement Practices From Investors Value Creation With Human Capital Investment Business Impact Analysis at Chrysler Learning or Performance Enhancement: Which Is It? Best Practices in Global Project Management Training Case Study Business Intelligence Advertisers’ Index Editorial Resources In Conclusion

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