Learning and development (L&D) teams are facing increasing pressure to deliver impactful training while optimizing costs. As more teams cut corners, understanding how and when to outsource becomes increasingly important. Let’s explore the optimal mix of in-house and outsourced talent and managing the risks of partnering with a training provider.

When we look at some of the more common outsourced L&D services, there are many that fit into these categories, but for the purpose of this article we will bucket them into three types and their biggest benefits.

3 Common L&D Partnerships

Learning Services Providers

Learning services providers improve operational efficiency by providing a range of expertise, services and tools to fill organizational gaps. They often deliver high-quality, scalable and flexible content or strategy partnerships.

• Expertise: Instructional design, cutting-edge learning technologies, engaging facilitation methods and outcome measurement.
• Usage: Ideal for specific projects to enable faster and more effective learning solutions.

Training Process Outsourcing

Training process outsourcing providers manage an organization’s entire training function, offering end-to-end solutions from needs analysis through content creation, delivery and evaluation.

• Integration: Fully integrates with the organization’s operations to align training initiatives with business goals.
• Scope: Functions as an extension of the team, often interacting with stakeholders outside the training (if it exists) or the broader HR organization.

Technology-Enabled Learning Solutions

Technology-enabled learning solutions provide solutions such as virtual instructor-led training (VILT), eLearning, mobile learning, gamification and immersive technologies like augmented and virtual reality (AR/VR). They may even include adaptive technologies or other AI-enhanced solutions.

• Benefits: Scalable and consistent learning experiences with quick delivery of state-of-the-art solutions without significant upfront investment.
• Inclusion: Other providers may include these solutions in their offerings.

Determining the right mix of in-house and outsourced learning solutions for your organization takes forethought and an understanding of what you need to accomplish and how much control you want or need.

In-house L&D offers control over content development, timely updates, confidentiality and proprietary information.  It also provides a strong understanding of business strategy and needs. However, it requires significant investment in talent, tools, processes and technology.

Outsourced solutions provide access to specialized expertise, advanced technologies, flexibility, scalability, cost savings and faster development times. They can drive long-term growth by allowing companies to focus on core functions while training is supplemented in other areas. The risks include potential disconnect, data security and sharing, long onboarding processes and quality control.

Combining in-house and outsourced L&D optimizes benefits by maintaining core strategic functions in-house while outsourcing specialized or large-scale projects. This approach ensures agility, cost-efficiency and access to external expertise without compromising control over critical functions.

Mitigating Risks in Outsourcing

It is important to mitigate risks when choosing the option to outsource. Some things to consider include:

Clear Expectations and Communication

Establish clear goals, guidelines and regular communication. Align objectives, performance metrics and timelines with outsourcing partners to ensure focused and productive partnerships.

Data Privacy and Security

Ensure outsourcing partners comply with data privacy laws and have robust security measures. Include specific data privacy and security requirements in RFPs and contracts to mitigate risks.

Performance Metrics and Monitoring

Implement detailed performance metrics and continuous monitoring to identify issues early. Conduct regular performance reviews with outsourcing partners to maintain high standards and meet organizational goals.

The Good, the Bad and the Ugly of Outsourcing Training

The Good

• Leveraging external expertise and scalable solutions reduces training costs, improving training’s return on investment (ROI).
• Organizations gain access to expertise through providers’ specialized knowledge and advanced technologies.
• Outsourcing provides flexibility with the ability to scale training programs based on specific needs.

The Bad

• Potential disconnects can arise from misalignment of objectives and expectations.
• Sharing sensitive information poses privacy and security risks.
• Aligning goals and processes with outsourcing partners can be time-consuming.

The Ugly

• Poor communication and lack of executive sponsorship can result in failed partnerships.
• Unexpected costs may arise if the scope of work is not clearly defined.
• Poorly managed partnerships can lead to subpar training quality.

Outsourcing learning services offers numerous benefits, including cost savings, access to specialized expertise and enhanced flexibility. However, it is essential to carefully consider the mix of in-house and outsourced services, establish clear expectations and implement robust risk management strategies. By staying informed about future trends, particularly the impact of AI and maintaining strong partnerships with trusted providers, organizations can optimize their L&D programs to meet evolving business needs.