Licensing is a contractual agreement between a buyer and supplier of training services. Considered one of the four forms of outsourcing, it is characterized as one of two types of Out-Tasking deals. Licensing is used when a buyer seeks to license the ‘rights’ to use a technology, product, or intellectual content for future purposes; or to obtain ‘permission to use.’
Similar to Contracting in the Out-Tasking Model, licensing occurs when one company gives another company the right to use, sell or manufacture a product or service. Licensing is often used in training as a transactional method for the right to use an LMS, courseware, authoring platform, collaboration tool, social media platform, or delivery platform.