Have you ever asked why big companies spend more with external training and development services these days compared to the past? It comes with how businesses evolve, and corporate executives do not wish to return to the old ways of training staff. Change has arrived they say and with it comes better ways of leveraging the money they allotted for training.
Here are some of the top reasons why businesses, both big and small, are beginning to outsource their training more.
For most businesses, training is considered a necessity. However, if done in-house, the tasks involved in training and development may be a tedious distraction. That is a good reason why you would need to outsource your training and development to a company whose core expertise is training.
A lot of old and new businesses are now seeing that training is a good source of income, and they have intellectual property that has market value. That is why they some companies outsource their training to a third party that has the knowledge to market their training to a specific audience to generate revenue. Companies like Microsoft and Cisco do this, so this may also work for you.
Training is a certified way to prevent failure from happening. It helps in safeguarding the company as well as the employees from the certain liabilities that may result in revenue loss or getting sued. If a company doesn’t provide the training needed by the staff, they are prone to mistakes that may end with legal problems when injuries or issues occur. The risks are reduced when the staff is well trained. Proper training can be had by resorting to the training experts rather than just doing it in-house.
Having an in-house training team requires people with different levels of skills and knowledge. A full-time in-house team is a fixed resource. However, training is something that is variable. By outsourcing training, you can scale your resources to deliver the training you need, only when training is necessary. It lets your organization to scale up and down based on how much training your company needs.
When major players began outsourcing their business to countries like China, India or the Philippines, they faced the need to train their local employees. Because of this, it became more practical for them to outsource training to a company based in the said countries and who understands the culture of the employees. Imagine how much they will spend if they send their entire Filipino workforce abroad just to be trained by their in-house team.
You need to face the fact that no company—no matter how big it is—has all the knowledge they need from their team to train the entire workforce. Sometimes it is a must to hire an outside expert to teach internal staff how to do new processes or use new equipment. Yup, getting a consultant is also a form of outsourcing.
The top reason why businesses outsource training and development is to be able to save money. At the end of the day, it all boils down to how effective we are in managing costs while we get the best results.