Know more about Training Outsourcing Services and Solutions visit at: www.lsaglobal.com.
Copyright © 2008 Learning Alliance Corporation DBA LSA Global All Rights Reserved.
Does it make more sense to develop the solution internally or use outside resources? While much has been written regarding the build vs. buy decision for technology solutions, there is little literature regarding learning solutions or the training function as a whole.
While we believe that build vs. buy is a good question to ask, it is not necessarily the first, only, or best question to ask. In order to determine what makes sense for your specific situation, we recommend considering the following questions and reviewing the enclosed articles on outsourcing.
• 5 Key Business Questions to Consider before Outsourcing
• Key Cost, Quality, and Time Questions Regarding Outsourcing
• Outsourcing for Cost Savings, Speed, and Strategic Growth
• Top 10 Reasons Companies Outsource
• Top 10 Factors for Successful Outsourcing
• Top 10 Factors in Vendor Selection
• With LSA vs. Without LSA
5 Key Business Questions to Consider before Outsourcing
Before speaking with a potential outsourcing partner or finalizing your decision to outsource a function, program, or project, we recommend that you review the following questions. At a minimum, your potential vendor or partner should be asking these questions to ensure that they are adding clear value.
1. Do you understand all of the symptoms?
• What is the context of the issue? What are the facts and the technical issues?
• What pain is the problem causing? How is it felt specifically? How does the problem manifest itself in your organization?
• How bad is the pain? How big is the problem? What is the value of solving the problem? What is the value of not achieving your desired result? What are the consequences to you? Your boss? Your organization?
• Who/what else is affected? Is that important?
2. Do you understand the key causes and constraints?
• How did the problem come about?
• What has stopped it from being resolved before now?
3. Do you understand the business objectives?
• What are the positive desired results?
• What are the benefits of solving the problem or fulfilling an opportunity?
• How will you know success has been achieved?
4. Do you understand the benefits?
• What is the payoff from each outcome?
5. Do you understand the bigger picture?
• If you were the CEO (or General Manager) of your company, would you care about this problem?
Why? What about the solution would be valuable to you?
• Is there anything else to consider?
• Has anything been left out?
• Is there anything or anyone that would inhibit the successful implementation of a solution?
Key Cost, Quality, and Time Questions Regarding Outsourcing
We believe that the outsourcing of a function, program, or project should provide clear cost, quality, and time benefits to an organization. Here is a list of typical questions that we believe should be addressed.
Cost
Will outsourcing reduce costs? Short term? Long term?
Have you compared Build vs. Buy return on investment scenarios?
Do you want to invest internally in hiring, managing, firing, researching, assessing, designing, marketing, delivering, and evaluating solutions?
Quality
Do you have the internal resources to effectively meet the objectives? Is this the best use of these resources visà- vis other strategic priorities?
How can you most effectively deliver and scale up or down with changing and anticipated business needs?
Would you benefit from access to best practices and world class quality outside the organization?
Should you outsource some or all of the function/project?
Is this your core competence? Should it be? Will it help you develop one?
Would you gain valuable partnership benefits and contacts?
What would work best in your culture?
Time
Will outsourcing increase speed to better results?
Do you have the time to build it internally?
Outsourcing for Cost Savings, Speed, and Strategic Growth
A recent Outsourcing Institute study found that while most enterprises try to survive, the outsourcing industry continues to thrive.
A decade ago, cost reduction took center stage as companies sought short-term, “band aid” solutions from outsourcing and received equivalent tactical benefits. But, the market has turned. It’s “do or die” and outsourcing is no longer about cost savings. Now it’s an essential revenue and growth strategy for every corporation.
In this unpredictable—and mostly down—economy where most companies struggle to “do more with less,”outsourcing is not only a clever alternative to hiring, but also a means to turn “big picture” goals into reality faster and more effectively than ever—with measurable returns. Now everybody wants to plug into “OPR”—other people’s resources—and strategically focus internal resources towards doing what they do best. No more, no less.
Top 10 Reasons Companies Outsource
1. Reduce and control operating costs
2. Improve company focus
3. Gain access to world-class capabilities
4. Free internal resources for other purposes
5. Resources are not available internally
6. Accelerate reengineering benefits
7. Function difficult to manage/out of control
8. Make capital funds available
9. Share risks
10. Cash infusion
Source: Survey of Current and Potential Outsourcing End-Users
The Outsourcing Institute Membership, 1998
Top 10 Factors for Successful Outsourcing
1. Understanding company goals and objectives
2. A strategic vision and plan
3. Selecting the right vendor
4. Ongoing management of the relationships
5. A properly structured contract
6. Open communication with affected individual/groups
7. Senior executive support and involvement
8. Careful attention to personnel issues
9. Near term financial justification
10. Use of outside expertise
Top 10 Factors in Vendor Selection
The factors listed below are relevant to both our partners and clients. We find that the ranking of the various factors shifts with specific business situations, philosophies, and industries. In addition to the factors listed below, our clients typically use Speed to Results as a key criteria in selecting an outsourcing partner or vendor.
1. Commitment to quality
2. Price
3. References/reputation
4. Flexible contract terms
5. Scope of resources
6. Additional value-added capability
7. Cultural match
8. Existing relationship
9. Location
10. Other
With LSA vs. Without LSA
Since 1995, we have focused on adding clear value to our clients. The list below represents the top 10 areas that our customers tell us that they appreciate about outsourcing functions, programs, and projects to LSA.
With LSA Without LSA
1. Guaranteed results Inconsistent quality, pricing, and results
2. Focus on partnering with business units to drive meaningful results Tie up valuable resources on administration and non value-added activities to your customers
3. Select from pre-qualified, proven world-class experts, approaches, and practices Invest resources reinventing the wheel, sourcing, qualifying, managing, and auditing multiple unproven vendors and cumbersome RFPs
4. Receive a 24+% ROI and clear business cases supporting each project based upon best practices Forego discounts across multiple vendors and projects and spend time creating internal Justification
5. Have one point of contact, one invoice, and one contract Deal with multiple contacts, relationships, invoices, purchase orders, and negotiations
6. Leave the logistics to us Invest in managing scheduling, marketing, registration, materials, changes, etc
7. Access to the LSA Success Cycle™ used to measure results (levels 1-5) and prioritize next steps Invest in collecting, summarizing, and analyzing individual results and evaluations and determining next steps
8. Access to objective Industry-wide options designed for your specific business, culture, industry, and budget Sort through multiple vendors selling isolated, one-off, off-the-shelf training events based upon what they have available
9. Have an objective Account Consultant assigned to your account at no cost
Use only internal resources and paid vendors to drive success
10. Utilize integrated solutions across multiple vendors, content areas, and Processes Invest time and money "patching" together independent vendor solutions
- Related Videos
- Related Articles
- Ask / Related Q&A
- Project Management - Stakeholder Risk Management
- The Value And Reality Of Implementing Better Project Management
- Steps Management Can Take to Ensure Training Transfer
- Myriad Inc. Offers Professional Usa It Project Management Training Services
- project management training
- inabia project management
- A simulating idea … The use of simulation in training
- A Tale of Two Projects




HOW CAN A COMPANY REDUCE COSTLY ABSENTEEISM CAUSED BY SMOKERS?
By: John English | 24/12/2009Become active in helping smoker-employees to stop smoking permanently. Find a method that is easy to administer, risk-free, rapid, cost-effective and that WORKS! A solution is proposed that will turn smoker-employees into highly motivated team members, while providing very positive publicity for the company and its management. Win-Win.
PANLEGIS - simple, efficient and quick company formations
By: Joakim Gustafsson | 24/12/2009An experienced company formation agent will take care of all sides of your company registration – from suggesting M&As;to registering with the national registrar of companies.
MLM lead system
By: Ryan | 24/12/2009An MLM lead system is most important factor in MLM marketing.
Versatility of CMMS Products
By: Ashley Combs | 23/12/2009Versatility of CMMS products is a highly coveted and appreciated feature for any business. Enterprise Asset Management allows you to get the most out of your plant assets in order to cut overhead and keep business costs low. No matter what CMMS products that a business implements, the tools for cost evaluation and equipment maintenance will benefit any business.
What Makes Revamped Office Furniture Can Become Just The Ticket For All Offices
By: Aleks G | 23/12/2009In our modern society, there is never-ending conversations in the area the preservation of precious resources.
WordPress can make easy to use Content Management System
By: spinxwebdesign | 23/12/2009WordPress is very versatile software program which can be used for many purposes. One of the biggest advantages of WordPress is, it is almost free and using it one can easily make a decent website. This article will present an overview on how WordPress can be used as CMS.
Ideal Bookkeepers and Bookkeeping
By: vish ks | 23/12/2009The chief aim of any individual who sets up a business is to earn substantial income. In order to conduct business in the appropriate way, one needs to have at least some acquaintance with the different operations associated with it. Well, regarding bookkeeping activities, considering the current economic scenario, it would be prudent to hire the services of some professional bookkeeping firm.
Bookkeepers Adopt a Meticulous Approach
By: vish ks | 23/12/2009All Companies must conduct an accurate analysis of the bookkeeping affairs for the faster growth of the Company. Bookkeeping as such is an assortment of multiple activities. Usually organizations and Companies employ a few accountants and bookkeepers for handling their accounts. But, the very concept of maintaining a huge workforce in the bookkeeping department is not recommended nowadays.
3 Keys to Project Leadership
By: Tris Brown | 09/04/2008 | Project ManagementTo elaborate, project leadership is managing results and relationships to satisfy expectations.
Your Legal “to Do” List
By: Tris Brown | 09/04/2008 | ManagementLooking back over the past year, we've seen a few trends in employment law. What action steps can you take now to prevent costly lawsuits?
Achieving the Real ROI of Learning
By: Tris Brown | 03/04/2008 | Business IdeasHow should you measure your training investment? Our research shows that you may be asking the wrong question. Many organizations are finding it difficult to measure training in a way that provides useful information at an acceptable cost.
Five Easy Pieces to Performance Measurement
By: Tris Brown | 03/04/2008 | ManagementIt's time for a change in thinking. The truth is that the measurement starting line is very wide and the race is not reserved for the genetically gifted few. Ordinary people with no special training are conducting meaningful measurement and revolutionizing their organizations in the process. You can, too.
Execution is the Key to Success
By: Tris Brown | 03/04/2008 | Ask an ExpertFailed execution is a plague upon many project teams. Statistics show that "one of three decisions are not communicated," "65% of employees are not held accountable," and that "68% of managers agree firefighting inhibits focus on longer term priorities."
Moving Beyond Consultative Selling to Deliver Industry Leading Sales Results
By: Tris Brown | 03/04/2008 | ManagementWhile solid product knowledge and advanced consultative selling skills can deliver increased revenue, they will not deliver industry leading sales results. Industry leadership comes when real business acumen is added to the mix and you become a trusted advisor as opposed to merely acting as one.
Top 10 Training Best Practices for Effective Learning and Development Programs
By: Tris Brown | 02/04/2008 | ManagementBest companies realize that only through effectively and continuously developing and training their employees can they acquire the core competencies needed for competitive advantage and flexibility.