The State of Learning Business Process Outsourcing
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- Conrad Tate
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From this document you will learn the answers to the following questions:
What is the term for the management of a single learning process by a third party?
What does LBPO stand for?
Is vendor training delivery revenue increasing or decreasing?
Transcription
1 The State of Learning Business Process Outsourcing HRO Europe Dublin, Ireland November 14, 2012 Gary Bragar HRO Research Director, NelsonHall NelsonHall Proprietary Not for distribution without permission
2 The State of Learning Business Process Outsourcing (LBPO) What is LBPO & size of the market What services are clients buying Including the emergence of social learning Prognosis for the future 2
3 What Do We Mean By Learning Services? Learning Services constitutes the management of a single learning process by a third party vendor within a shortterm (typically less than a year) project arrangement. Learning Service arrangements are common within content design and development, but also occur within delivery and technology In technology contracts, vendors offer hosted LMS/LCMS solutions to client organizations, sometimes including helpdesk support for that technology. 3
4 What Do We Mean By Learning BPO? Learning BPO constitutes the management of core learning administration services by a third party alongside one or more of the other critical learning functions for contracts that are a minimum 1 year length Full LBPO includes management of all aspects of learning, i.e. admin., content, delivery, technology. Selective LBPO includes a combination of admin. and one or two other learning function process areas e.g. technology and delivery Learning BPO can encompass a company s employees (Enterprise) or its customers and/or channel partners (EE) 4
5 Global Learning BPO Market to Reach $4.5bn $5,000 $4,500 $4,000 $3,500 $3,175 Global Learning Market Size ($m) $4,180 $3,860 $3,585 $3,335 $4,512 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $
6 Services Client s Are Buying Selective LBPO is increasing, led by content development and learning administration Learning administration to focus on more strategic HR objectives Content development to convert ILT to e-learning and VLT to expedite learning deployment and increase speed to competence; while at the same time decreasing delivery of ILT to reduce costs 6
7 Services Client s Are Buying E-learning accounts for 53% of learning delivery, a 5% increase since 2010 While overall vendor training delivery revenue has been decreasing due to increased e-learning and VLT. ILT in Europe remains stronger than in North America Clients are beginning to explore social learning and seek LBPO providers for help including with collaborative technology 7
8 The Advent of Social Learning Social learning does not = social media Conner and Bingham social learning is people becoming more informed, gaining a wider perspective, and being able to make better decisions by engaging with others. Learning happens with and through other people, as a matter of participating in a community, not just by acquiring knowledge 8
9 Types of Social Learning Formal = virtual instructor-led training (VLT), that is collaborative, including via: Text chat, whiteboard, break out rooms, polling questions, surveys, video, application sharing, etc. Informal, including: Discussion forums and learning communities, for experienced employees and for onboarding of new hires and mentoring Wiki s and Blogs using social interfaces, etc. 9
10 What Types of Social Learning Are Being Used Collaborative VLT LBPO vendors own technology Including web 2.0 portals and the use of discussion forums and learning communities, which may also be built by the client s internal IT organization Saba Centra Cornerstone Connect Wiki s and blogs used for social interaction 10
11 Top Drivers for Social Learning 1. Speed to competence 2. Demographic shift / how new employees want to learn 3. Improved talent management/engagement 4. A more cost effective way of learning 5. Learning enablement 90% of learning takes place outside of the classroom 11
12 Do Clients Have a Formal Social Learning Strategy? 2/3 do not, though half of those that don t are beginning to try and figure it out 1/3 do to some extent of which 30% have outsourced an aspect to an LBPO provider Providers are helping clients including with: Consulting on use & an engaging user experience Technology selection, implementation & mgmt. Provision of virtual instructor-led training Monitoring performance & effectiveness 12
13 Future State of Learning BPO Growth sectors include energy, healthcare, financial services and manufacturing Selective LBPO contracts outpace full LBPO led by content development Client learning spend increases for job skill training and professional development Learning is an integrated and integral component of talent management Client s budget for social learning 13
14 Future State of Learning BPO E-learning continues to exceed ILT, including VLT for dispersed workforces. M-learning increases including for content development M&A and partnering continue led by technology Extended enterprise learning increases as client s seek same benefits for their customers & suppliers Offshore delivery continues growth as client s increase their investment in learning, but want to do so at lower costs 14
15 Questions? HRO Europe Dublin, Ireland November 14, 2012
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