INDUSTRIES
Globally, corporations spend an average of $1,500 per employee every year on learning and development (L&D), which totals to more than $340 billion. In the United States, corporate spending on L&D amounted to $98 billion in 2024. While this is down 3.7 percent from the previous year, spending on outside products and services – including outsourced services – was up 23 percent at $12.4 billion.
At a time of great disruption and volatility, businesses are pulling all levers, including L&D, to make sure workers are building the skills needed to face the challenges and uncertainties of the new world of work. According to LinkedIn’s 2024 report on Workplace Learning, the top 5 focus areas for L&D are: aligning learning programs to business goals; upskilling employees; creating a culture of learning; helping employees develop their careers; and improving employee retention.
An increasing number of companies are outsourcing L&D for strategic reasons and not simply to reduce costs. According to Training Industry, a resource and events organization for L&D professionals, outsourcing allows companies to leverage a third-party provider’s range of expertise services and tools, particularly those that may not be available in-house. Outsourcing providers can also take on an organization’s entire training function or offer technology-enabled learning solutions, allowing more flexibility to the delivery of learning programs without requiring a huge investment.
According to Training Magazine’s 2024 Industry Report, an average of 6 percent of the total training budget of companies was spent on outsourcing, compared to 5 percent the previous year. In terms of the type of functions that are outsourced, 56 percent pass on instruction/facilitation services to third parties, while 27 percent outsource most or all of their Learning Management Systems. The public sector posted the largest total annual L&D budget, followed by the services sector and the manufacturing industry.
The Philippines is one of the world’s top destinations for business process outsourcing and consulting and is a rich source of experienced teachers and trainers specializing in a wide range of disciplines. Companies looking to develop training programs for their own staff or educational institutions that need virtual teachers who can adapt to their specific curricula can tap the Philippines’ highly trained educators and facilitators at significantly reduced costs. Partnering with an experienced provider such as Sourcefit to develop and staff your program is one solution that can be established quickly and with little risk.
Please contact us to find out about Sourcefit’s custom education and training solutions.
