HRO Europe
Dublin, Ireland
November 14, 2012
The State of Learning
Business Process Outsourcing
Gary Bragar
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
What Do We Mean By
Learning Services?
Learning Services constitutes the management of a single learning process by a third party vendor within a short-term (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.
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
Global Learning BPO Market to
Reach $4.5bn
$3,175 $3,335 $3,585 $3,860 $4,180 $4,512 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 2011 2012 2013 2014 2015 2016Services 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
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
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
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.
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
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
12 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
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
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
