NH Learning BPO Market Analysis

NelsonHall pubishes its 2012 Learning BPO study

NelsonHall’s Learning BPO Market Analysis shows that companies are once again investing in learning, but it is still not at pre-recession levels, due to continued uncertainty and cost concerns. There is still an appetite for full Learning BPO contracts, but it is selective Learning BPO that continues to increase across all learning towers, led by content development due to the conversion of Instructor-Led Training (ILT) to e-learning. For the first time e-learning, including VLT (Virtual-Led Training) now exceeds ILT, particularly for quick deployment of learning for geographically dispersed organizations and the advent of social learning. Due to the increased urgency to attract, develop and retain talent, clients have increased their focus on talent management and the vendors are helping, including by making the linkage of learning to performance management and developmental plans, both from a consultative and technological standpoint.

Unsurprisingly NelsonHall reports that North America is still the largest LBPO market, followed by the U.K. Learning BPO is forecasted to grow globally through the 2016 forecast period, with America remaining the largest market for LBPO services for the foreseeable future, but with the Asia Pacific region expected to have the highest growth.

The reports shows that cost continues to be the top driver for learning BPO, as even though the economy is slowly recovering many client organizations decimated their HR departments during the recession. Though outsourcing is a less costly alternative than rebuilding internally, quality of service delivery is ever more critical and vendors focused on supplying these services can deliver higher value in a shorter time period than is currently available at most internal HR departments.

NelsonHall has identified the top learning BPO drivers in the report, five of which are listed here that include:

1.     Cost reduction and control: decrease fixed costs of maintaining an entire learning organization with either full LBPO or selective LBPO

2.     Companies no longer want to manage learning internally: due to Cap Ex and Op Ex financial pressures, companies do not want to have to worry about hiring and reducing staff during peaks and valleys and LBPO means that clients no longer have to invest in technology that the vendor can host for them.

3.     Faster and better development of job skills: there is a large gap in skills required and skills available. Companies are seeking improved quality and consistency of learning, integrated with talent management, including performance management and succession planning.

4.     Improved business results: learning aligned to measured business goals and vendors who can provide predictive analytics.

5.     Scalability and global reach : through scalable, global resources and technology that can be utilized in the clients local language with aggregated reporting.

The complete 85 page report is available to NelsonHall subscribers and can be purchased separately by contacting rob.hughes@nelson-hall.com . The report is structured as:

  1.     Definition of Learning Business Process Outsourcing
  2.   Changing Shape of Learning BPO Services
  3.     Market Size and Growth
  4.     Customer Requirements
  5.     Vendor Market Shares
  6.     Vendor Offerings and Targeting
  7.     Geographic Patterns in Learning BPO
  8.     Offshore Delivery in Learning BPO Services
  9.     Vendor Selection Criteria, Challenges, Critical Success Factors and Positioning
  10.    Appendix I – Vendors Researched for Analysis
  11.    Appendix II – Kirkpatrick Model
  12.    Appendix III - Abbreviations and Terminology

The following vendors were interviewed during the writing of the report:

Accenture Learning Services, Aon Hewitt, Capita, Delta College Corporate Services, Expertus, Genpact, GP Strategies, IBM Global Services, Infosys, Intrepid Learning Solutions, KnowledgeAdvisors, KnowledgePool, Logica, Lumesse, Mahindra Satyam, NIIT, NorthgateArinso, QA, Raytheon Professional Services, Seertech Solutions, Talent2, The Learning Factor, Wipro, Xerox and others.

Separate profiles, offering objective analysis of their capabilities, focuses and strengths are available on each of these vendors is also available to NelsonHall subscribers or can be purchased as separate reports. 

Founded in 1998, NelsonHall is a leading analyst and advisory firm with an evidence-based approach to market and service provider assessments, with an unrivalled BPO knowledge covering an extensive range of business processes and industry sectors.

We work closely with our clients to create a value-based relationship using our BPO expertise to act as a trusted advisor, providing answers and making business sense of the complexity and challenges faced by both service buyers and service providers within the global outsourcing market.

We take your investment with us seriously. We know that the stakeholders within your organization expect to see a return on their investments and be able to see a tangible benefit. Our methodology is rigorous and based on many in-depth interviews with both the buy-side and the sell-side of the markets we monitor. No secondary interviewing from offshore is permitted as we strongly believe that the NelsonHall approach ensures that our market analyses are grounded in reality, and are rich in both market data and market insight. We provide exactly the kind of information and support that narrows the risk of decision making in complex sourcing environments. 

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Founded in 1998, NelsonHall is an analyst and advisory firm with an evidence-based approach to market and service provider assessments and an unrivalled BPO and outsourcing knowledge covering an extensive range of business processes and industry sectors. NelsonHall works closely with its clients to create a value-based relationship using its unrivaled outsourcing knowledge to act as a trusted advisor, providing answers and making business sense of the complexity and challenges faced by both service buyers and service providers within the global outsourcing market.

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