Multi-national companies embracing Learning Services Outsourcing

DALLAS, September 16, 2008 – Although labor cost savings is a factor, companies – particularly large, multi-national firms – are outsourcing employee training to retain focus on strategy and achieve tangible business outcomes, according to a new Everest Research Institute study.

The Institute’s study, Learning Services Outsourcing (LSO): Accelerating the Learning Curve, examines a “quietly” growing but strong market in which companies adopting LSO typically gain more than 15 percent direct cost savings and, in some cases, savings in excess of 30 percent. Even more significant, companies are using LSO to produce tangible business results, such as quicker time to market. The study includes analyses of the LSO market and key business drivers, buyer trends, transaction characteristics and buyer case studies. An analysis of the supplier landscape is also available.

“Multi-national companies are a driving force behind LSO adoption as they look to standardize the learning function across geographies while remaining sensitive to local cultures and requirements,” said Monica Barron, Vice President, Research. “With the increasing use of e-learning and the global reach of a growing LSO supplier base, companies are achieving these goals – and more importantly, producing measurable improvements – by outsourcing enterprise-wide learning”.

The LSO market is moving beyond the pioneer stage as evidenced by established suppliers expanding capabilities to include or expand LSO offerings. According to Barron, the market will expand further as buyers become more aware of the benefits of learning outsourcing.

Highlights of the LSO study include:

• Manufacturing, high-tech and the banking/financial services/insurance industries are the leading adopters of LSO
• The majority of LSO buyers are companies with more than 15,000 employees with multi-country presence; therefore, about 60 percent of LSO transactions cover multiple countries
• Companies are successfully outsourcing both Human Resources-led training and development functions as well as line function-owned learning
• To date, more than two-thirds of LSO deals have originated in North America; however, demand from Europe and Asia-Pacific-based companies is rising
• Among offshore delivery options, India is the most common delivery location
• In the majority of LSO deals, the technology component is also outsourced. Key drivers for technology bundling in LSO deals include buyer demographics, supplier strategy and learning technology advances
• E-learning is the most common mode among many delivery options, with most companies using a blended approach

To read more about the findings of the Learning Services Outsourcing: Accelerating the Learning Curve and other Human Resources Outsourcing (HRO) research studies, an extract of the report is available at www.everestresearchinstitute.com. To purchase the report or receive more information about other research services, please e-mail info@everestresearchinstitute.com or call +1-214-451-3110.
For more information about the Institute’s outsourcing services, please visit www.everestresearchinstitute.com, email info@everestresearchinstitute.com or call +1-214-451-3110.

About Everest Research Institute

Everest Research Institute serves as a central source of independent and objective strategic intelligence, analysis, and actionable insight for leading corporations, service providers, and investors in the global outsourcing and offshoring marketplace. The Institute addresses both business process and information technology sourcing topics, providing the global outsourcing and offshoring community with information that empowers highly productive, sustainable sourcing strategies and relationships. The Institute’s distinguished Board of Advisors, senior executives, and thought leaders oversee the Institute’s research agenda to ensure that it fully supports the business needs of corporations, service providers, and investors.

Everest Research Institute members receive access to unparalleled analytical and advisory services, including access to Everest analysts, in-depth reports on major outsourcing and offshoring topics, whitepapers on market-shaping events, and webinars designed to provide insight and information about important market trends. The Institute’s wealth of knowledge and experience provides members with unique perspectives into today’s marketplace and the competitive edge required to take advantage of emerging opportunities.

Everest Group is a global operational strategy consulting firm with offices in such leading business centers as Dallas; Gurgaon, India; London; Amsterdam; New York; Toronto and Melbourne. An industry leader since 1991 when we created the sourcing consulting category, Everest Group has earned a worldwide reputation for ongoing innovation as we help clients achieve maximum value from their operations, which includes sourcing strategy and implementation. Everest created the Everest Research Institute as the central source of industry information. Please visit www.everestgrp.com and www.everestresearchinstitute.com for more information.