Posts From: Outsourcing

Maybe the words are a bit harsh but there are times when reporting the facts goes a bit afield when placed into context with other elements. A recent article by Rebecca Wanjiku, Computer World-Kenya suggest the many struggles that Kenya is having in getting into the Business Process Outsourcing (BPO) space. My contention is that they are ‘emerging’ and to conduct a gross comparison against the Indian benchmark is inappropriate and totally irresponsible. Some would even argue that below the Tier 1 level, even within India, there are misgivings and issues worth noting.

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J. Nicholas Hoover of Techweb.com reported in the October 26, 2009 issue of InformationWeek that the state of Indiana has canceled a $1.3B, 10 year outsourcing deal with IBM claiming the vendor "failed to deliver the service improvement expected from a welfare modernization project." How many times have we heard that message from a buyer of training services?

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ACS was acquired today by Xerox, the global leader in document management solutions. ACS is one of the Top 20 Training Outsourcing companies in the world. This deal, valued at $6.4B brings a powerful brand into a market still seeking validation. Is this deal good for the training outsourcing market? What does it mean for consumers?

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Does your training organization operate under a supply based business model or demand based business model? Well one of them may be wrong for your company. As we are all searching for ways to ensure a high return on investment, learn what business model may be best for your company.

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In my most recent blog post, “Are your training suppliers aligned to your needs?”, I addressed one of the most critical mistakes companies make when selecting a training supplier – strategic alignment. But you or your company may have already committed to a long term engagement with a training supplier. After the services began, you then found that the supplier is not meeting your needs. So what do you do?

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According to a survey of training professionals, the most important characteristic of a GREAT training company is 'strategic alignment'. So what is strategic alignment? And is your supplier aligned to your needs? And how would you know when selecting a supplier if they have the capability to align to your needs?

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Some of the most interesting, most vibrant learning is taking place in the military and in the healthcare industry. Both the military and healthcare are often early adopters in training methodologies, which is not surprising since in both worlds training is a matter of life and death. At HealthNet, a Fortune 200 health insurance company, one learning mission has taken on increased importance for a country at war.

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2009 has seen a huge increase of activity in the training outsourcing market. This means there are lots of training, procurement, and business executives involved in selecting a strategic training partner that has never done this type of business deal before. Training BPO (business process outsourcing) is very different than contracting a training company to deliver courses or manage development projects. Yes, both engagements are considered outsourcing; but the process of managing a multi-year BPO engagement is more complex and involves critical steps to reduce your risks. And most importantly, your costs.

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Over the last three months, I've seen a huge increase in the activity of large scale training outsourcing engagements. These deals are multi-million dollar engagements for 3 to 5 year terms. Not surprising, this increased activity is the result of the changing economy. It is forcing companies to focus on cost reduction and/or revenue generation. And training is highly instrumental in both. The language we heard a few years ago about transforming training into a value creator is not as prevalent as before - although I expect it to return when the economy stabilizes. Now it’s all about the dollar.

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Xe (pronounced like the letter Z) is one of the largest training outsourcing firms in the world, and it's a good chance you have never heard of them. That's because Xe is the rebranded name of Blackwater USA, the military services company which has been embattled with the Iraqi government, then denied in January of 2009 a license to continue operating there.

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