state of learning bpo market nelsonhall webinar 13 11-21
DESCRIPTION
Based on NelsonHall's recently published, "Targeting Learning Business Process Outsourcing" market analysis, this presentation is a summary of NelsonHall's latest assessment of the learning business process outsourcing (LBPO) market, including perspectives on how the market is changing and what the critical success factors will be in the future. The presentation was given by Gary Bragar, Research Director for NelsonHall's HR Outsourcing practice and covered amongst other areas; - What is LBPO and the size of the market? - Why companies are outsourcing LBPO? - Benefits obtained by buyers LBPO inhibitors, vendor selection criteria and vendor challenges - Critical success criteria Learning BPO trends, social learning and the future state of LBPOTRANSCRIPT
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NelsonHallGlobal Learning BPO WebinarNovember 21, 2013
The State of Learning Business Process Outsourcing
Gary BragarHR Outsourcing Research Director
Latest NelsonHall HRO Research Published
Recently published market analysis and associated vendor profiles in 2013:
– Targeting Multi-Process HRO
– Targeting Payroll BPO
– Targeting Benefits Administration
– Targeting Learning BPO
– NEAT for Payroll and Benefits Administration
Next Research to be Published in 2013– Targeting RPO and NEAT for Learning & RPO
The State of Learning Business Process Outsourcing (LBPO) Agenda
What is LBPO & Size of the Market
Why Companies are Outsourcing LBPO
Benefits Obtained by Buyers
LBPO Inhibitors, vendor selection criteria & Vendor Challenges
Critical Success Factors
Learning BPO Trends, Social Learning & the Future State of 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 (Enterprise) or its customers and/or channel partners (EE)
Global Learning BPO Market to Reach $4.5bn
2012 2013 2014 2015 2016 2017
Global Learning Market Size ($m)
$3,335$3,520
$3,750$3,995
$4,250$4,530
Providers Interviewed Include
NelsonHallGlobal Learning BPO WebinarNovember 21, 2013
U.S. Based LBPO Providers Interviewed
Accenture Aon Hewitt Aptara Cognizant Expertus GP Strategies Corp IBM Global Services
Intrepid Learning Solutions
KnowledgeAdvisors* Raytheon Professional
Services TrainingFolks Xerox
*KnowledgeAdvisors is not an LBPO provider, interviewed for learning analytics
Asia Pacific Based LBPO Providers Interviewed
Australia Seertech Solutions Talent2
India Genpact Infosys HCL Mahindra Satyam Neeyamo NIIT
Learning BPO Specialist Providers
Aptara Cognizant Expertus GP Strategies Intrepid Learning
Solutions KnowledgePool
NIIT QA Raytheon Professional
Services Seertech Solutions TrainingFolks
MPHRO Providers with LBPO Capability as Standalone Service
Accenture Aon Hewitt Capita Genpact HCL IBM Global Services
Infosys Mahindra Satyam Neeyamo NorthgateArinso Talent2 Xerox
Client LBPO Drivers
1. Cost effectiveness and efficiency2. Talent development to improve workforce
capability and performance: War for talent a driving factor
3. Client reinvestment in learning; But they no longer have the capability internally
4. Improved business results Improved productivity and faster speed to market
5. Increased levels of innovation, including: Technology, new ideas and process improvement
LBPO accelerates speed of learning, increases client satisfaction, reduces costs & improves business results Provider Examples Benefits
Raytheon Professional Services
For a fortune 500 client’s finance organization, objectives were to increase knowledge and skills, increase use of key performance development tools & transform culture
+170% employees trained & $cost sav. of 5% per student
IBM For a beverage company needing to be SOX compliant, training 1,500 employees in 1 month in English & French
Training time reduced by 75%
NIIT For a major U.S. Insurance company revamped its product line by developing customized training & improving business performance in 3 months
57% agents increased quotes,
53% incr premiums
Accenture For a multinational consumer good co. increased sales via development of a training campaign to address slow sales growth, market share & brand penetration in China
$50m increase in sales
Talent2 For a metals and mining client’s IT learning group, developed standard templates, updated and validated 2,000 course materials to be common
19% less “how to: calls to the helpdesk
Inhibitors for Learning Outsourcing
1. Resistance to change Lack of buy-in from business CLO’s want to build empire
2. Learning fragmented across the business No champion and decision maker
responsible for overall budget3. Lack of/difficulty building business case 4. Invested in learning internally
Currently satisfied, no burning platform
Top LBPO Vendor Selection Criteria
1. Expertise, proven capability and experience, with referenceable clients
2. Value proposition; better quality of services at a lower price, paying on consumption of services
3. Best cultural fit and partnership
4. Breadth of services, including access to talent domains beyond learning
5. Global capability incl. delivery & transformation
6. Domain expertise / technology capability
Key Vendor Challenges
Providing quantifiable results and references in clients own industry
Ability to help clients lower cost while improving service at the same time
Present global learning solutions
Present innovative technological solutions
Client utilization of analytics
Critical Success Factors for Learning BPO
1. Obtain client buy-in Using demonstrated cost & ROI results
With client references & retention rates
2. Continuously develop technological capability and provide change management
3. Be innovative, proactively introduce new ideas, srvs.
4. Ability to partner and/or acquire for service delivery & technology, including global delivery capability
5. Reduce client fear/resistance to change with data
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Services Client’s Are Buying
E-learning accounts for 55% of learning delivery, a 7% increase since 2010
Full learning BPO has begun to increase but selective LBPO accelerates led by content development and learning strategy 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
Strategy/consulting, incl. to strengthen development of talent and implementation of social learning
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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”
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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.
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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
Commercial technology examples Saba Centra, Cornerstone Connect
Wiki’s and blogs used for social interaction
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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
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Do Clients Have a Formal Social Learning Strategy?
Only 15% of companies have a formal learning strategy. Of those that do not:
1/3 not even begun to address it, 20% are beginning to address it
35% in early stages of exploration, experimentation & implementation
Of those with a strategy or in early stages 30% outsourced an aspect to an LBPO provider of which 15% are
managing social learning pilots
Providers are helping clients including with: Consulting on use and an engaging user experience
Technology selection, implementation & management
Provision of VLT & a few monitoring performance & effectiveness
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Future State of Learning BPO
• Growth sectors include energy, healthcare, financial services, retail and manufacturing
• Selective LBPO contracts outpace full LBPO led by content development (though full LBPO increasing)
• 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
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Future State of Learning BPO
• E-learning continues to exceed ILT, including VLT for dispersed workforces ILT reduces to 40% market by 2015, then stabilizes M-learning increases including for content development
• M&A and partnering continue to strengthen delivery capability and geographic expansion
• 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 at lower costs
http://www.nelson-hall.com/service-line-programs/hr-outsourcing/market-analyses/
NelsonHallGlobal Learning BPO WebinarNovember 21, 2013