In the United States, spending on education and training by corporations reached $164.2 billion in 2012. About 28 percent of this spending goes to third parties or outside vendors.
TrainingIndustry.com estimated global training expenditures in 2013 at $306.9 billion, of which almost half (46 percent or $141.7 billion) was accounted for by the North American market, followed by Europe at 29 percent, and Asia at 10 percent. In general, the larger the company, the more they spend on training and education as a percentage of total revenue, with IT firms often spending more than companies in the services sector.
An increasing number of companies are outsourcing education and training for strategic reasons and not simply to reduce costs. According to HRO Today’s special edition issue Training Outsourcing Finds Its Identity, third parties increase an organization’s ability to train more people faster and more cost-effectively than in-house staff.
Accenture reported that high-performing organizations outpace their competitors by 27 percent in terms of productivity and by 50 percent in terms of net income. Outsourcing can develop an organization’s talent pool cost effectively while providing a globally scalable and measurable model (Accenture Learning BPO Services, 2010).
Current trends driving increased outsourcing in the training and education sector include productivity-related training; training related to the complexities of corporate consolidation; and customer training as a client-acquisition tool. Today, third platform technologies are transforming training and education outsourcing. Organizations are turning to e-learning and leveraging cloud-based services, social media and mobile devices to train their customers, dealers, and channel partners. HRO Today reported that automobile manufacturers rely on outsourcing providers to train business customers and dealer networks and other business customers. Other industries that heavily rely on e-learning are healthcare, agriculture and professional associations.
The Philippines is one of the world’s top destinations for business process outsourcing and consulting. The result is increasing numbers of experienced teachers and trainers in a wide range of disciplines. For companies looking to develop training programs for their own staff or for educational companies who need virtual teachers who can adapt to their specific curricula, the Philippines offers a rich resource of talent at highly reduced costs. Partnering with an experienced provider such as Sourcefit to develop and staff your program is one way to develop a solution quickly and with little risk.
Please contact us to find out about Sourcefit’s custom education and training solutions.