• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Literature Review about Training Outsourcing

Extracts from this document...


Literature Review about Training Outsourcing Training Outsourcing has become a very popular amongst the training cycles during the last decade. A recent study appearing in Fortune Magazine (May, 2004) showed that outsourcing among U.S. companies is up 50% from four years ago and growing 15%-20% annually. Top functions for outsourcing include payroll, HR management, customer service, call centres, technology, and now corporate training. In a 2003 survey conducted by research firm IDC training emerged as the number one candidate for outsourcing. 1 Outsourcing is defined as the assignment of a business process to an external provider. Thus outsourcing providers have been called Business Process Outsourcing (BPO). However outsourcing should be differentiated from outasking where the latter means assignment of certain tasks only to outside providers. It is worth at this point analysing the advantages and disadvantages of outsourcing. Outsourcing providers and academic writers seem to agree on the fact that the major advantages of outsourcing are short term, i.e. cost cutting and long term i.e. freeing up time for strategic decisions. Nearly 48% of outsourcing decisions are made to reduce operational costs. The reason why outsourcing providers offer services at a reduced cost is that the outsourcing firm performs the same function on a much larger scale and therefore has more efficiencies and experience in a particular function. ...read more.


BP struck a deal with exult in 1999 which was in charge of most of BP's HR processes leaving only strategic decisions to BP. The key ingredients of the success are maintenance of control by BP and a relationship based on trust between BP and Exult. 4 Apart from private organisations outsourcing has been adopted by many public sector organisations. Countries like the United Kingdom and Australia already have gained considerable experience and reaped many benefits. Outsourcing has its special advantages for public sector organisations can bring in advantages. Specialised software that could not be developed internally due to high cost provides employees with a more convenient service and frees up time for focusing on the learning and development strategy. It can also provide with data that was unavailable before which informs HR decisions. However, it is suggested that they should not blindly follow the paradigm of private sector when choosing to outsource some of their services. Many elements must be taken into consideration, including political climate, unions, local economies, employment situation, and the investments required and available. In conclusion training outsourcing if it is managed well can bring many benefits to the organisation including cost cutting, access to expertise and enabling focus on strategic work. ...read more.


Furthermore the diverse needs for training of staff could not be covered by those four trainers only. It has been decided therefore to utilise external training providers. The Learning and Development Department has put a tender to a number of training providers and has ended with a preferred supplier list with which special rates have been agreed for different types of courses. The Professional Development Unit has its own preferred supplier list. Access to expertise then was the main driver for outsourcing. Refer to literature review Discussion Recommendations Outsourcing can be utilised more smartly to free up time for strategic decisions. Work closely with managers to train them on appraisals and training needs analysis. Create a learning organisation. Organisation going through major restructuring. Training and Development Manager primarily involved. Opportunity to devote more time if outsourcing works well. Administration use of a more sophisticated information database that enables staff to book courses online, fill in training needs questionnaire and generally be responsible for their own learning. Conclusion 250 words 1 Ousourced Learning makes its Mark Development and Learning Organisations. Vol. 18, No 4, 2004, pp. 28-31 2 Outsourcing Training is 'in' Will It Work for You? Managing Training and Development Jan 04 Vol 4 Issue 1, p.4 3 Garry De Rose & Janet McLaughlin Outsourcing Through Partnerships Training & Development , October 1995 4 BP's HR Outsourcing success: can it work for you? Human Resource Management Vol 12 No 3 2004, pp. 5-7 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE People in Business section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE People in Business essays

  1. Training and Development.

    Skills acquired by new employees can either be transferable or non-transferable. All the types of training and development described below, fall under one of these two headings. Transferable skills These types of skills can be used for a wide range of jobs later on in a career change.

  2. Hostile is outsourcing: The story of Manufact

    Later on we will see that this was not as such and the whole structure of the IS department was affected, due to the lack of communication with the right people and high risk decision made. Within this case study we see that Lawler was interested in "downsizing" and "facilities management".

  1. Managing Human Resources in Marks & Spencer.

    organisations in which cross-functional skills and knowledge are required, and work effectively in teams and other collaborative situations. Employees, too, recognise that it is essential for them to continue to learn so that they will be effective in their current jobs and able to move into other positions or accept new responsibilities as circumstance demand.

  2. Induction and training

    may be obvious it is still mandatory for staff to be familiarised with this sort of information. Thus, during these inductions employees are also made to be familiar with their role in relation to the hotel. On the other hand, by law it is officially permitted employers should provide their

  1. A Report on How Richer Sounds Functions

    * Technology - Technology has influenced Richer Sounds' culture because now it is a lot easier for different functions to work such as the computer systems in the Administration department now do not need as many people to do the job as there is a lot less paperwork to deal with as it is stored on the computer.

  2. The Uniformed Public Services

    * The chief officer will assess each case individually. Requirements on Appointment Officers are required to have their fingerprints taken and a record kept for elimination purposes. New recruits are required to provide a DNA sample, which will be retained on a separate database for elimination purposes only.

  1. Operational Issues in the BPO industry

    calls to the individuals within itself either on basis of skill, knowledge level or the time they have been idle for. Service Level Agreements An SLA is a document that identifies the agreed-upon services that will be provided to an organization or department in an outsourced setting.

  2. Function proposal

    salad & chips Set Menu Two - $44.95 per person Please choose from one of the following Entr´┐Że * Spicy marinated calamari rings,

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work