Preparing to Learn Again in 2010

The headline of an article in yesterday’s USA Today read, “Economy is growing, but job market remains soft’”. While this isn’t happy news for those still out of work, it bodes well and is a bellwether for companies – and those employed by companies – that place a premium on developing the skills of their existing staff, as well as for providers of outsourced learning services.

As economic fears begin to ease, albeit modestly, I predict buyer demand for outsourced learning will heat up for several key reasons:

• Organizations know they must invest in developing existing talent they want to retain – for example, as I wrote about in a blog last year, approximately 50 percent of employed Americans plan to look for new opportunities when the economy begins to turn around, and dissatisfaction with their current jobs and lack of clear career path opportunities are contributing factors

• Although job growth is slow to come, unemployment has stabilized, and monthly job reductions are nowhere as severe as a year ago and will return to growth. As a result, organizations must be prepared to train new hires

• Training student hours, budgets and staffs were all cut during the downturn. As companies prepare to return training to the forefront, they are unlikely to return to the previous levels of spend and staff in the near term due to continued uncertainty. Learning outsourcing can help bridge the gap

The outsourced learning vendor community is providing indicators of preparation for growth. For example, on December 30, 2009, Sagard Capital Partners, L.P. completed a $20 million investment in General Physics (GP) Strategies, a global learning provider, signaling not only confidence in GP Strategies as a company but also a resurgence in learning services as organizations begin to again invest in their people. And on January 4, 2010, GP Strategies acquired PerformTech, Inc., an eLearning provider of custom training solutions, including content development to U.S. government agencies. As eLearning accounts for more than 50 percent of all learning today given organizations’ need to control costs, this was a highly strategic acquisition for GP Strategies. An indicator of the strength of the eLearning market comes from Edvantage Group, an eLearning provider based in Norway, which recently announced it surpassed one million course completions in 2009.

Based on the inherent benefits to buyers, and increased capabilities and retooled pricing models of providers, I believe we will see solid growth in outsourced learning through 2013. And those buyers and providers making the investment now will be thankful they did…and so will their employees.

Gary Bragar, Lead HRO Analyst, NelsonHall

Advertisements
Explore posts in the same categories: hr outsourcing, hr outsourcing research, hro, HRO providers, lbpo, learning outsourcing, nelsonhall, outsourced learning

Tags: , , , , , , , , , , ,

You can comment below, or link to this permanent URL from your own site.

2 Comments on “Preparing to Learn Again in 2010”

  1. Bruce Kneuer Says:

    Your comment about employed Americans looking for “new opportunities when the economy begins to turn around” brought to mind a November announcement from Right Management:
    http://www.right.com/news-and-events/press-releases/item1954.aspx
    According to this press release, only 13% of the 904 employees surveyed said they intended to stay with their employer.

    • gbragar Says:

      Bruce, thanks very much for your comment and contribution. Wow, the data gets even scarier if employers don’t act to retain their talent! The data I referenced re: the c. 50% was attributed to 3 different sources, earlier in 2009 = 1) a nationwide telephone survey of 500 hiring managers and 500 workers from various sized businesses – conducted by Robert Half International and CareerBuilder between April 30 and May 31, 2009, 2) on August 26, Jobfox, reported, “A recent study concluded that 54 percent of employed Americans plan to look for new opportunities once the economy begins to turn around, 3) An August 26 article by Hudson stated, “The global financial crisis has had a severe and divisive impact on the sentiment of the workforce in Australia and New Zealand.” “Employees’ feelings of disaffection are already playing out in the market, more employees are now seeking new roles (jobs) compared to before the downturn, almost half of the workforce is seeking a new role (47 percent) and 56 percent said they would consider roles they previously would not have looked at.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s