From guest blogger Gary Bragar, HR Outsourcing Research Director at NelsonHall
In my last blog we discussed the leading trends and business drivers that have emerged since Learning Business Process Outsourcing (LBPO) got put back on the front burner over the past year. Moving forward on that topic, we’ve identified eight major goals that companies are seeking to achieve through their moves to learning outsourcing. These corporate goals are, in order of importance
- Cost effectiveness and efficiency
Perennially a driving force, cost was not always the number one reason, but named as one of the top drivers by over 70% of clients. Companies are looking to provide better learning services at lower cost through outsourcing, but also to gain the flexibility that the variable cost structure outsourcing provides.
- Talent development to improve workforce capability and performance
We see this goal growing in importance since our 2012 analysis, where it was the third priority. Due to the retirement of the Baby Boom generation, companies are finding it more difficult to hire the talent needed and must focus on developing skill sets internally. With roughly 10,000 people retiring each day in the U.S., the need for knowledge transfer and skill development grows more intense.
- Rebuilding learning programs
After a few lean years, companies are finding they no longer have sufficient internal learning resources and expertise. Yet we’re finding clients are hesitant to invest in new staff or technology, including hosting.
- Improved business results
The flip side of cost savings, companies are finding LBPO is an opportunity to demonstrate increased revenue and ROI, as well as improvements in productivity and faster speed to market.
- Increased levels of innovation
Innovation is becoming central to business operations, whether in technology, new ideas or process improvements. Increasingly, we’re finding innovation to be an important factor when choosing LBPO vendors.
- Stronger focus on more strategic objectives
For most organizations, learning is not a core competency. With scarcer resources at hand, clients are looking to reduce their administrative burden so they can focus their staffing dollars on the resources that are most essential to differentiating the business.
- Consolidation and centralization
Those clients with multiple learning organizations within the same company are looking to standardize their processes and technology. Surfacing best practices leads to better consistency and efficiency of learning operations.
- Development of social and collaborative learning strategy
The social computing revolution offers tremendous potential to redefine learning practices, and clients are looking to explore ways to achieve the benefits through use of video and gaming technology, as well as social networks and collaborative networks.
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.