According to analyst and advisory firm, NelsonHall, there are several criteria to consider in terms of expected client benefits when implementing Learning Business Process Outsourcing (LBPO) including: cost savings; timeliness; employee self-service; support for new business units and country entry; integration of acquired companies; linking learning to talent management; measuring learning effectiveness and analytics.
In this post, we’ll take a look at NelsonHall’s recent LBPO market analysis and concurrent client interviews, conducted as part of the NelsonHall Evaluation and Assessment Tool (NEAT), which revealed that LBPO is largely meeting and exceeding client expected benefits in six out of seven criteria sought by clients.
Below is a summation of potential benefits sought by clients after implementing LBPO, their immediate importance, client satisfaction, the delta of the aforementioned and future importance. Client respondents were based in North America, Europe and Asia Pacific.
Based on the above data, in terms of current importance, LBPO vendors are largely meeting and exceeding client expectations in all categories, with the exception of Measuring learning effectiveness and analytics. Moving forward measuring learning effectiveness and analytics should be a priority for LBPO vendors as evident by the future importance respondents placed on it (93 percent). Raytheon Professional Services (RPS) scored 90 percent in client satisfaction in this category, well above the average score of 78 percent, an indication of their recognition of how significant it is for clients to be able to link learning to measurable outcomes.
Across the board, results showed that vendors are excelling in the following categories and, based on the future importance scores, should continue to place strong emphasis on them:
- Linking learning to talent management: This needs to continue as an area of focus as future importance increases by 9 percent. In this category, RPS scored 93 percent, the company’s top client satisfaction score across the seven potential benefits and highest delta above overall client satisfaction.
- Employee self-service: RPS’ score is on par with meeting client importance and satisfaction.
- Cost savings: Though survey respondents were satisfied in this category, it continues to be a high priority. RPS currently slightly exceeds the average overall client satisfaction.
If I were to put on my teaching hat, the above scores would equate to grades of “C+ to B+”. While LBPO vendors are doing a good job of meeting and exceeding their clients’ expectations, there is certainly room for growth as LBPO adoption continues to grow.
NOTE: The NelsonHall LBPO NEAT covers a number of learning business situations including organizations seeking talent development, learning process transformation, cost reduction and multi-country learning. Twenty-one LBPO vendors are included in NEAT for NelsonHall’s “speed-to-source” initiative. The NEAT tool sits at the front-end of the vendor screening process and consists of a two-axis model: assessing vendors against their “ability to deliver immediate benefit” to buy-side organizations and their “ability to meet client future requirements.”
The NEAT analyses are based on a combination of vendor and client interviews. Vendors are scored against a wide range of criteria, establishing a number of scenarios, each with different weightings to represent a different business situation or client business need.
Gary Bragar is the HR Outsourcing Research Director at NelsonHall where he has global responsibility for HRO. Gary joined NelsonHall in April 2007 after gaining extensive HR management experience at AT&T. In this key role, Gary assists both buy-side and vendor organizations in assessing the opportunities and supplier capability across HRO, including for learning, recruitment, payroll, benefits, and multi-process HRO. Gary recently completed an industry-leading analysis of opportunities and vendor capability in Learning BPO.
In his last job assignment at AT&T, Gary was a member of the AT&T governance team responsible for managing the service delivery of AT&T’s major Human Resources and Payroll services BPO contract with Aon Human Capital Services. Gary helped forge the strong partnership and as such AT&T and Aon were selected as “HRO Relationship of the Year.” Gary’s prior operational experience at AT&T included: Learning, Recruiting, Benefits Administration, Compensation, HR Transformation, HRIT and Employee Programs for AT&T International. In Learning Gary performed content development and delivery of AT&T Bell Laboratories quality curriculum. Gary is also an adjunct Professor having taught part-time in the Business Department at Bloomfield College, NJ for 17 years. Gary is certified as an online instructor and delivered courses using classroom, online and blended delivery.
Gary has published numerous articles, conducted numerous webcasts and presented at many conferences in the U.S. and Europe including co-presenting with Raytheon in Amsterdam on the benefits of Learning BPO, and in California at the 2014 Spring CLO Symposium on To Outsource or Not to Outsource Learning, a discussion from a left and right brain perspective.