You are on page 1of 14

2O18 TRAINING

INDUSTRY
REPORT
ABOUT THIS STUDY

Now in its 37th year, The Industry Report


is recognized as the training industry’s
Industrial Classifications
most trusted source of data on budgets, Respondent profile by industry (weighted per Dun & Bradstreet)
staffing, and programs. This year, the ;#'L
study was conducted by an outside -4!$(#'%#(L ,%(f%-#'(7L
research firm May-July 2018, when V!-%#(% '<-* j%*
4-%!$- (###(L =#'#(L
members from the Training magazine D$$(-%#(L
database were e-mailed an invitation D(#'-#(L
S(
to participate in an online survey. Only P#%#&L '<-
L
U.S.-based corporations and educational
B<'($(#*
institutions with 100 or more employees ,#%'&JL
were included in the analysis.
P%#*,!-% D(#(7L
The data represents a cross-section of '<-JL
industries and company sizes. %f#&*
-'#&L

SURVEY RESPONDENTS Q%V#%#*


('%(-
L
Small companies 36%
+(%(-*
(100-999 employees) S%(?(7L Q#%L
Midsize 41% N'%('#%#(* N-(7&*
(1,000-9,999 employees) ##
L f#@%'JL
Large 23%
(10,000 or more employees)

Total respondents 271

Note that the figures in this report


are weighted by company size and About Survey Respondents:
industry according to a Dun & Bradstreet tBSFNBOBHFSTPSBCPWFJOUIFPSHBOJ[BUJPO
database available through Hoovers of tBSFEFWFMPQFSTPSJOTUSVDUJPOBMEFTJHOFST
U.S. companies. Since small companies tBSFNJEUPMPXMFWFM CBTFEPOUJUMFTFMFDUJPO
BTTPDJBUFT
dominate the U.S. market, in terms of tEFUFSNJOFUIFOFFEGPSQVSDIBTJOHQSPEVDUTBOETFSWJDFT
sheer numbers, these organizations receive tTFUUIFCVEHFU
a heavier weighting, so that the data tNBOBHFSFRVFTUTGPSQSPQPTBMTCJET
accurately reflects the U.S. market. tSFDPNNFOEUIFQVSDIBTF
tIBWFUIFmOBMQVSDIBTFEFDJTJPO

18 | NOVEMBER/DECEMBER 2018 training www.trainingmag.com


TRAINING EXPENDITURES

Total 2018 U.S. training


Training Expenditures 2013-2018
expenditures—including payroll (IS(
and spending on external products
and services—declined 6.4 percent 100
E

QE
to $87.6 billion. Spending on Q
J

outside products and services rose


Q
from $7.5 billion to $11 billion, 80
 Q

while other training expenditures J


 J

(i.e., travel, facilities, equipment) QJ


60

 Q
decreased to $29.6 billion from

$44.5 billion. Meanwhile, training
payroll increased nearly 13 percent  J
  

to $47 billion. 40 E


EJ
The training expenditure EE
figures were calculated by
projecting the average training 20
budget to a weighted universe
of 127,095 companies, using 
 J J
J

a Dun & Bradstreet database 0
available through Hoovers of U.S. N#%N'%((7 N'%((7 #%ff (!(7(;#!
organizations with more than 100 V"(!#' %&' '!-#k '<-
employees.
Note: Although small companies
have the smallest annual budgets, DEFINITIONS
there are so many of them  Total training spending: All training-related expenditures for the year,
(112,507), that they account for including training budgets, technology spending, and staff salaries.
one-quarter of the total budget for  Training staff payroll: The annual payroll for all staff personnel assigned
training expenditures. to the training function.
 Outside products and services: Annual spending on external vendors and
consultants, including all products, services, technologies, off-the-shelf
and custom content, and consulting services.

Average of Total Annual Budget


Organization Type Large Midsize Small Average
Education $3,587,500 $300,833 $354,886 $888,878
Government/Military $17,600,000 $2,758,375 $666,364 $5,137,176
Manufacturer/Distributor $14,549,108 $2,557,373 $450,000 $4,202,210
Nonprofit $32,669,800 $3,731,250 $233,333 $7,839,960
Association N/A N/A $150,000 $150,000
Retail/Wholesale $39,500,000 $849,375 $348,333 $9,271,389
Services $18,983,185 $2,142,047 $253,736 $4,752,179
Avg. Across Sizes $19,681,075 $2,107,790 $355,751 $4,963,673

www.trainingmag.com training NOVEMBER/DECEMBER 2018 | 19


2018 TRAINING INDUSTRY REPORT

TRAINING EXPENDITURES

Types of Training Products and Services


Intended to Purchase Next Year
Assessment & Analysis Testing 22%
Audience Response Systems 6%
Audio and Web Conferencing Products & Systems 18%
Authoring Tools/Systems 27%
Business Skills 13%
Certification 26%
Classroom Tools & Systems 32%
Consulting 21%
Content Development 31%
Courseware Design 18%
Customer Relationship Management 13%
Enterprise Learning Systems 9%
Games & Simulations 21%
Knowledge Management Tools/Systems 15%
Learning Management Systems 33%
Mobile Learning 24%
Online Learning Tools & Systems 41%
Support/On-Demand Learning Tools & Systems 17%
Presentation Software & Tools 21%
Talent Management Tools & Systems 21%
Training Management Administration 9%
Translation & Localization 9%
Web 2.0 2%
Other 5%

0 10 20 30 40 50

Average training expenditures for large companies increased $1.1 million; for small companies, it was $289,752.
from $17 million in 2017 to $19.7 million in 2018. The For those who reported an increase in their training staff, the
number for midsize companies rose $600,000 to $2.1 million average increase was six people, three more than in 2017. For
in 2018. But small companies decreased from $1 million to those who reported a decrease in their staff, the average decrease
$355,731 (back to slightly below the 2016 level). was 24 people—up from six last year, but two large companies
Some 36 percent of organizations said they increased staff reported a reduction of 300-plus trainers, skewing the average.
from the year before (up from 28 percent in 2017), while Other training expenditures decreased significantly this
52 percent said the level remained the same (down from 56 year to $29.6 billion from $44.5 billion in 2017. Such
percent in 2017). Some 12 percent said it was lower, down expenditures can include travel, training facilities, in-
from 16 percent in 2017. Large and midsize government/ house training development, and equipment. On average,
military organizations had the largest personnel costs. This organizations spent 11 percent of their budget or $235,077
year, midsize companies spent about a fifth as much as large (up from $135,837 last year) on learning tools and
companies, while small companies spent about one-quarter technologies. Large services organizations had the largest
as much as midsize ones. The average payroll figure for large budgets for learning tools ($1.3 million). Midsize government/
companies was $6.2 million; for midsize organizations, it was military organizations had the largest tool budget in their

20 | NOVEMBER/DECEMBER 2018 training www.trainingmag.com


Training Expenditures per Learner 2016-2018
$814 Q

All Companies $1,075 QJ


$986 Q
$1,052
Small (100 to 999 $1,886
employees) $1,096

$870
Midsize (1,000 to $941
9,999 employees) $858

$379
Large (10,000 or $399
more employees) $1,046
0 500 1000 1500 2000

Hours of Training per Employee 2017-2018


All Companies 47.6 QJ
46.7 Q
Small (100 to 999 43.2
employees) 61.2

Midsize (1,000 to 54.3


9,999 employees) 32.0

Large (10,000 or 42.2


more employees) 49.3

0 10 20 30 40 50 60 70 80

size range ($230,758). Large retailers spent the smallest Overall, on average, companies spent $986 per learner this
percentage of their training budgets on tools and technologies year compared with $1,075 per learner in 2017. Government/
(1 percent). Looking ahead, the most frequently anticipated military organizations spent the most per learner this year
purchases are online learning tools and systems (41 percent ($1,433), followed by nonprofit organizations ($1,360).
vs. 40 percent last year), learning management systems (33 Midsize companies spent less ($858) than large ($1,046) and
percent vs. 39 percent last year), and classroom tools and small ($1,096) companies.
systems (which leaped into No. 3 with 32 percent vs. 28 While spending slightly less per learner, companies provided
percent last year). This is followed by content development almost the same number of hours of training as last year. On
at 31 percent and authoring tools/systems at 27 percent (vs. average, employees received 46.7 hours of training per year,
28 percent last year), certification (26 percent vs. 29 percent compared to 47.6 hours last year. Small companies provided the
last year), and mobile learning (24 percent vs. 23 percent most hours of training this year (61.2). Small services companies
last year). Several items received 10 percent or less of hits, had the highest average number of hours overall (81.8).
including audience response systems, enterprise learning Companies continued to devote the bulk of their training
systems, talent management administration, translation and expenditures to training non-exempt employees (39 percent
localization, and Web 2.0. vs. 42 percent last year).

www.trainingmag.com training NOVEMBER/DECEMBER 2018 | 21


2018 TRAINING INDUSTRY REPORT

TRAINING EXPENDITURES

Training Expenditure Allocations—


40
Who Gets Trained? 39% Staff per 1,000 Learners
,!wD$%(
30 27% 24.7
24% 25
20
19.3
20
15
10% 10
10 5.2
5
0
0
V"-#< ,%(%7' ( ( ;<'% # #
V"$# ,%(%7' V"$# f',!w  
V"$# V$& D$%(

Staff per 1,000 Learners Staff per 1,000 Learners


>%'7D$%( $%D$%(
58.4
60 56.4 60

50 50

40 40 33.4
33.8 31.4
30 30

20 13.5 20 13.5
10.4
10 10

0 0
;<'% # # ' ;<'%f' # # #
f'>%'7   $' $%   
D$%( D$%(

N%<'%7#'%((7 Is the Number of


!7#f'%'7 Training-Related Staff Higher
or Lower Than Last Year?
-$%(@% /RZHU
IJ$(@ +LJKHU

$!w-$%( 

%-%#!%(%<'%7f 6DPH

I$(%(!$%
-$%(!!-%#!%(
%<'%7fIEJ

22 | NOVEMBER/DECEMBER 2018 training www.trainingmag.com


TRAINING BUDGET

Budget status remained much the same What Happened to Your


as last year, with 37 percent saying
their training budget increased and 48
Training Budget This Year?
percent saying it remained the same.
Some 15 percent reported a decrease 'HFUHDVHG
in budget. Last year, 36 percent said
their budget went up; 49 percent said  ,QFUHDVHG
it remained the same; and 15 percent
said it went down. Services companies 
showed the greatest tendency for budget 5HPDLQHG
cuts, while retailers showed a greater WKHVDPH
tendency for gains. Increases were not
evenly distributed across organization

sizes. More small and midsize
companies showed increases (32 and
51 percent, respectively) than decreases
(14 and 11 percent, respectively) than
midsize and large companies, where
the numbers were more balanced (23
percent for each).
Most of the budget increases were
modest—less than 16 percent. Some
42 percent saw increases in the 6 to
15 percent range, while 30 percent of
Budget Change by Industry
organizations reported increases in the Q=-'%
10%
1 to 5 percent range. Most respondents .BOVGBDUVSFS%JTUSJCVUPS 39% Q (-'%
who reported an increase in their
51% Q %$
training budgets attributed it to the
following reasons: 20%
Services 43%
t*ODSFBTFJOUIFTDPQFPGUIFJS 37%
training programs (65 percent vs.
67 percent last year) 16%
3FUBJM8IPMFTBMF 42%
t"EEFEUSBJOJOHTUBGG QFSDFOUWT
42%
54 percent last year)
t*ODSFBTFEOVNCFSPGMFBSOFSTTFSWFE 14%
(48 percent vs. 49 percent last year) (PWFSONFOU.JMJUBSZ
32%
t1VSDIBTFEOFXUFDIOPMPHJFT 54%
equipment (34 percent vs. 38
percent last year) 12%
Education
12%
This year, more respondents (36 76 %
percent) reported budget decreases 0%
between 6 and 15 percent vs. 33 "TTPDJBUJPO
0%
percent for 1 to 5 percent decreases 100%
and 31 percent for more than 16
percent decreases. Some 32 percent 8%
Nonprofit
(vs. 36 percent last year) chose 38%
“other” as the reason for the decrease, 54%
citing “added more blended learning 0 20 40 60 80 100
opportunities and reduced the need to
travel,” “potential corporate merger,”
and “state budget reduced.”

www.trainingmag.com training NOVEMBER/DECEMBER 2018 | 23


2018 TRAINING INDUSTRY REPORT

TRAINING BUDGETS

How Much Did Your Training Budget Increase?


This was followed by: 4D$%(
t#VEHFUBEKVTUFEUPSFnFDUMPXFSDPTUT
OFBSMZQFSDFOUWTQFSDFOUMBTU ,'N%(L L
ZFBS

L#L 
L
t3FEVDFEUSBJOJOHTUBGG QFSDFOUWT
L#L L
QFSDFOUMBTUZFBS

L#L EL
t%FDSFBTFEPVUTJEFUSBJOFSDPOTVMUBOU
JOWFTUNFOU QFSDFOUWTQFSDFOU
     
t%FDSFBTFETDPQFPGUSBJOJOH QFSDFOU
WTQFSDFOU
$%D$%(
,'N%(L JL
-JLFUIFMBTUTJYZFBST UIFIJHIFTU
QFSDFOUBHFPGPSHBOJ[BUJPOT QFSDFOU
TBJE 
L#L 
L
NBOBHFNFOUTVQFSWJTPSZUSBJOJOHXJMMSFDFJWF
L#L L
NPSFGVOEJOHUIBOUIFZFBSCFGPSF0O L#L JL
BWFSBHF PSHBOJ[BUJPOTQMBOUPBMMPDBUF
UIFNPTUGVOEJOHUPNBOEBUPSZDPNQMJBODF     

USBJOJOHBUNJMMJPOEFTLUPQBQQMJDBUJPO
USBJOJOHBUNJMMJPOQSPGFTTJPOJOEVTUSZ ,!wD$%(
TQFDJmDUSBJOJOHBUNJMMJPOPOCPBSEJOH
BU BOENBOBHFNFOUTVQFSWJTPSZ ,'N%(L JL
USBJOJOHBU  
L#L L
5IFIJHIFTUQSJPSJUJFTGPSUSBJOJOHJOUFSNTPG

L#L L
BMMPDBUJOHSFTPVSDFTJOBSFJODSFBTJOH
UIFFGGFDUJWFOFTTPGUSBJOJOHQSPHSBNT  L#L 
L
QFSDFOUWTQFSDFOUMBTUZFBS
GPMMPXFECZ      
NFBTVSJOHUIFJNQBDUPGUSBJOJOHQSPHSBNT
BOESFEVDJOHDPTUTJNQSPWJOHFGmDJFODZ
QFSDFOUGPSCPUIJOWTBOE
>%'7D$%(
QFSDFOU SFTQFDUJWFMZ MBTUZFBS
BOE ,'N%(L L
JODSFBTJOHMFBSOFSVTBHFPGUSBJOJOHQSPHSBNT

L#L L
QFSDFOUUIJTZFBSWTQFSDFOUMBTU
ZFBS
-FBSOJOHJOGSBTUSVDUVSFJTBMPXQSJPSJUZ
L#L EL
BUQFSDFOU BOEOPOFPGUIFSFTQPOEFOUT L#L L
TBJEUIFZBSFQMBOOJOHUPPCUBJOSFWFOVF
      
UISPVHIFYUFSOBMUSBJOJOH

Why Did Your Budget Increase?


"EEFE5SBJOJOH4UBGG L
*ODSFBTFE/VNCFSPG-FBSOFST4FSWFE L
*ODSFBTFE4DPQFPG5SBJOJOH 
L
"UUFOEFE.PSF0VUTJEF-FBSOJOH&WFOUT DPOGFSFODFTTFNJOBST
L
*ODSFBTFE0VUTJEF5SBJOFS$POTVMUBOU*OWFTUNFOU L
1VSDIBTFE/FX5FDIOPMPHJFT&RVJQNFOU EL
#VEHFU"EKVTUFEUP3FnFDU)JHIFS$PTUT L
0UIFS L

        

24 | NOVEMBER/DECEMBER 2018 training www.trainingmag.com


How Much Did Your Training Budget Decrease?
4D$%(
,'N%(L 10%

L#L 21%

L#L 36%
L#L 33%
0 10 20 30 40

$%D$%(
,'N%(L 18%

L#L 36%

L#L 46%
L#L 0%
0 10 20 30 40 50

,!wD$%(
,'N%(L 13%

L#L 13%

L#L 41%
L#L 33%
0 10 20 30 40 50

>%'7D$%(

,'N%(L 0%

L#L 15%

L#L 23%
L#L 62%

0 10 20 30 40 50 60 70 80

Why Did Your Budget Decrease?


Reduced Training Staff 26%
Decreased Number of Learners Served 5%
Decreased Scope of Training 13%
Attended Fewer Outside Learning Events (conferences/seminars) 8%
Decreased Outside Trainer/Consultant Investment 21%
Budget Adjusted to Reflect Lower Costs 29%
Other 32%
0 5 10 15 20 25 30 35

www.trainingmag.com training NOVEMBER/DECEMBER 2018 | 25


2018 TRAINING INDUSTRY REPORT

TRAINING BUDGETS

Projected Funding for Learning Areas Next Year


Executive Development LL
LL
Management/Supervisory Training EL
LLL
Interpersonal Skills (e.g., communication, teamwork) L
LJLL
IT/Systems Training (e.g., enterprise software) EL
JLLL
Desktop Application Training L

LLJL
Customer Service Training LLLL
Sales Training LLLEL
Mandatory or Compliance Training JLJLLL
Profession/Industry-Specific (engineering, accounting, etc.) L
LL
L
Onboarding L
LJLL

0 20 40 60 80 100

Q,'N%(>%#U%'Q4## %$%>%#U%'Q>N%(>%#U%'Q *4

TRAINING DELIVERY

Some 69.3 percent of hours were delivered with blended devices, down from 3.6 percent in 2017. None of the
learning techniques, up significantly from 34.7 percent respondents used social learning only to delivery learning,
last year. the same as last year. And only 10.6 percent of companies
BSFVTJOHJUUPTPNFFYUFOU EPXOGSPNQFSDFOUMBTUZFBS
t4PNFQFSDFOUPGUSBJOJOHIPVSTXFSFEFMJWFSFECZB
stand-and-deliver instructor in a classroom setting—down Instructor-led classroom training is used exclusively or
from the 42 percent reported last year. mostly (90 to 100 percent of the time) by 9 percent of the
tQFSDFOUPGIPVSTXFSFEFMJWFSFETPMFMZWJBPOMJOFPS organizations. More companies (34 percent) use it for 10 to
computer-based technologies, down from 28.6 percent last 29 percent of their training. Small and midsize companies
year. Virtual classroom/Webcast accounted for 10.2 percent rely on blended delivery methods for a sizable amount of their
of hours delivered, down a bit from 14 percent last year. training (79 and 86 percent of hours, respectively) vs. 43
tQFSDFOUPGUSBJOJOHIPVSTXFSFEFMJWFSFEWJBNPCJMF percent for large companies.

Training Delivery Methods by Company Size 2018

Small (100 to 999 employees) JLELLLL*

Midsize (1,000 to 9,999 employees) 



LELLLEL*

Large (10,000 or more employees) ELELLLL*

0 50 100 150 200


QS(!!>%'((7 %-$(%#(f$#!#!@
Q (#'-#'>!D%'$;(&
Q'#%D%'$*j-%#;(& (#'-#'f'$'$#-%#(
Q ;(('D$#'S%!,#!;(& ((#'-#'
Q,;(& -(!#%#=4
Q -%>%'((7;(&

26 | NOVEMBER/DECEMBER 2018 training www.trainingmag.com


TRAINING DELIVERY

Mandatory or compliance training continued to be done mostly classroom/Webcasting/video broadcasting at 69 percent,


online, with 82 percent of organizations doing at least some down from 73 percent last year
of it online and 28 percent entirely online (up from 27 percent t3BQJEFMFBSOJOHUPPMT QFSDFOU EPXOGSPNQFSDFOU
last year). Online training also often is used for sales training last year)
(82 percent), IT systems training (73 percent), and desktop t"QQMJDBUJPOTJNVMBUJPOUPPMT QFSDFOU EPXOGSPN
application training (70 percent). Online delivery for profession/ percent last year)
industry-specific training was at 68 percent, followed by
management/supervisory training, interpersonal skills training, The delivery methods least often used for training remained
and customer service training, all at 56 percent. Online training the same as last year:
was least used for onboarding and executive development (49 t1PEDBTUJOHBUQFSDFOU VQGSPNQFSDFOUMBTUZFBS

percent and 48 percent, respectively). t0OMJOFQFSGPSNBODFTVQQPSU &144


PSLOPXMFEHF
Technology use overall was slightly lower than last year. Of the NBOBHFNFOUTZTUFNBUQFSDFOU EPXOGSPNQFSDFOU

learning technologies presented, the most often used included: t.PCJMFBQQMJDBUJPOTBOEMFBSOJOHDPOUFOUNBOBHFNFOU
t-FBSOJOHNBOBHFNFOUTZTUFNT -.4T
BUQFSDFOU  TZTUFNT -$.4T
CPUIBUQFSDFOU EPXOGSPN
down from 86 percent last year, followed by virtual percent and 35 percent, respectively)

Online Method Use for Types of Training


&YFDVUJWF%FWFMPQNFOU EELEELELLEL
.BOBHFNFOU4VQFSWJTPSZ5SBJOJOH LELELLL
*OUFSQFSTPOBM4LJMMT FH DPNNVOJDBUJPO
LJLELLEL
*54ZTUFNT5SBJOJOH FH FOUFSQSJTFTPGUXBSF
LLELELJL
%FTLUPQ"QQMJDBUJPO5SBJOJOH JLELELLL
$VTUPNFS4FSWJDF5SBJOJOH LELE
LLL
4BMFT5SBJOJOH LLLLEL
.BOEBUPSZPS$PNQMJBODF5SBJOJOH LLLE
LL
1SPGFTTJPO*OEVTUSZ4QFDJmD FH FOHJOFFSJOH
L
LELEL EL
Onboarding ELLELLL

0 20 40 60 80 100
Q ;((Q4+@;(('7'%$Q $;((Q,#&;((Q4;((

$
'-(#f#'%((7'@'
GHOLYHUHGYLDEOHQGHGOHDUQLQJ7KDWÀJXUHLV
!#'-(#%7''#!%#&%'
(#'-#'!#'%((7%--(#!f'E'
-(#f'!@(f'$'-(#(J

www.trainingmag.com training NOVEMBER/DECEMBER 2018 | 27


2018 TRAINING INDUSTRY REPORT

TRAINING DELIVERY

1 Learning Technologies Current Usage4D$%(


Podcasting L JLJL
Online Performance Support or Knowledge Management System L 
LL
Rapid E-Learning Tool (PowerPoint conversion tool) LJLL
Application Simulation Tool EL 
L
L
Virtual Classroom/Webcasting/Video Broadcasting 
L ELL
Learning Content Management System (LCMS) EL 
LL
Learning Management System (LMS) LJLL
Mobile Applications EL

LL
0 20 40 60 80 100
Q-''(#&Q=(#Q #'

$%D$%(
Podcasting JL
LJL
Online Performance Support or Knowledge Management System 
LJ
LL
Rapid E-Learning Tool (PowerPoint conversion tool) EL
LJL
Application Simulation Tool L
JLL
Virtual Classroom/Webcasting/Video Broadcasting 
ELLEL
Learning Content Management System (LCMS) L
JLL
Learning Management System (LMS) JLJLL
Mobile Applications LJELL
0 20 40 60 80 100
Q-''(#&Q=(#Q #'

,!wD$%(
Podcasting ELL
L
Online Performance Support or Knowledge Management System L
LL
Rapid E-Learning Tool (PowerPoint conversion tool) LE
LL
Application Simulation Tool EL
L
L
Virtual Classroom/Webcasting/Video Broadcasting JLLL
Learning Content Management System (LCMS) L
LL
Learning Management System (LMS) LL  L
Mobile Applications L
JLL
0 20 40 60 80 100
Q-''(#&Q=(#Q #'

>%'7D$%(
Podcasting JL
LL
Online Performance Support or Knowledge Management System EELLL
Rapid E-Learning Tool (PowerPoint conversion tool) LLJL
Application Simulation Tool LELL
Virtual Classroom/Webcasting/Video Broadcasting JLLL
Learning Content Management System (LCMS) ELLL
Learning Management System (LMS) LJLL
Mobile Applications ELLL
0 20 40 60 80 100
Q-''(#&Q=(#Q #'

28 | NOVEMBER/DECEMBER 2018 training www.trainingmag.com


TRAINING OUTSOURCING

2018 saw an increase in the average expenditure for training custom content development (60 percent some or completely
outsourcing: $422,321, up from $219,265 in 2017. Large outsourced for large companies; 53 percent for midsize ones;
companies on average spent $1.3 million vs. $216,657 for and 34 percent for small organizations).
midsize companies and $78,184 for small ones. An average The level of outsourcing is expected to stay relatively steady
of 14 percent of the total training budget was spent on in 2019—some 82 percent of organizations said they expect
outsourcing in 2018, doubling the 2017 percentage. to stay the same in the outsourcing area. The percentage of
On average, 26 percent of companies mostly or completely companies expecting to decrease outsourcing (11 percent)
outsourced LMS operations/hosting (down from 34 percent is higher than those expecting to use outsourcing more (7
last year), while LMS administration and learner support percent). Roughly half of respondents said they don’t plan
largely were handled in-house (77 percent). to outsource learner support or LMS administration in the next
Instruction/facilitation was handled equally in-house (46 12 months.
percent) and outsourced (54 percent). Across all the topic While there aren’t many differences between the outsourcing
areas, large companies outsourced only slightly more than changes by company size, small companies indicated they will
midsize ones, and midsize organizations outsourced more outsource slightly less across the board than large or midsize
than small companies. This effect was most striking for companies.

%@%((-'%(#%<'%7
"(!#'f'#'%((7#'-(7H
IEf'$I
(J
4(%<'%7f'-(#f###%
#'%((7!7#@%(#(#'-(7
N<f#'-(7"-#!#
#%&'%#<&#%!&(

Extent of Outsourcing4D$%(
Instruction/Facilitation 
LLL
LMS Administration (registration, upload data) JJLLEL
LMS Operations/Hosting LL
L
Learner Support JJLLL
Custom Content Development ELLL
0 20 40 60 80 100

Q ;#'-(7Q $;#'-(7Q,#&'D$#&;#'-!

www.trainingmag.com training NOVEMBER/DECEMBER 2018 | 29


2018 TRAINING INDUSTRY REPORT

TRAINING OUTSOURCING

Extent of Outsourcing6PDOO&RPSDQLHV
Instruction/Facilitation LL
LMS Administration (registration, upload data) 
LMS Operations/Hosting 
Learner Support 
Custom Content Development 
0 20 40 60 80 100
Q1R2XWVRXUFLQJQ6RPH2XWVRXUFLQJQ0RVWO\RU&RPSOHWHO\2XWVRXUFHG

0LGVL]H&RPSDQLHV
Instruction/Facilitation LL
LMS Administration (registration, upload data) 
LMS Operations/Hosting 
Learner Support 
Custom Content Development LL
0 20 40 60 80 100

Q1R2XWVRXUFLQJQ6RPH2XWVRXUFLQJQ0RVWO\RU&RPSOHWHO\2XWVRXUFHG

/DUJH&RPSDQLHV
Instruction/Facilitation 
LMS Administration (registration, upload data) L
LMS Operations/Hosting 
Learner Support 
Custom Content Development 
0 20 40 60 80 100
Q1R2XWVRXUFLQJQ6RPH2XWVRXUFLQJQ0RVWO\RU&RPSOHWHO\2XWVRXUFHG

:KLOHWKHUHDUHQ·WPDQ\GLIIHUHQFHVEHWZHHQ
SODQQHGFKDQJHVLQRXWVRXUFLQJE\
FRPSDQ\VL]HVPDOOFRPSDQLHVLQGLFDWHGWKH\
ZLOORXWVRXUFHVOLJKWO\OHVVDFURVVWKHERDUG
WKDQODUJHRUPLGVL]HRUJDQL]DWLRQV

30 | NOVEMBER/DECEMBER 2018 training www.trainingmag.com


Projected Use of Outsourcing4D$%(
Instruction/Facilitation LLLEL
LMS Administration (registration, upload data) ELELLL
LMS Operations/Hosting
LLLEL
Learner Support LE
LLL
Custom Content Development LE
LELEJL
0 20 40 60 80 100
Q,';#'-(7QN %$Q>;#'-(7
Q:H'RQ·W:RQ·W2XWVRXUFH7KLV)XQFWLRQ

$%D$%(
Instruction/Facilitation LLELEL
LMS Administration (registration, upload data) LELLL
LMS Operations/Hosting LLLL
Learner Support ELL
LL
Custom Content Development LE
LLL
0 20 40 60 80 100

Q,';#'-(7QN %$Q>;#'-(7
Q:H'RQ·W:RQ·W2XWVRXUFH7KLV)XQFWLRQ

,!wD$%(
Instruction/Facilitation LLLEL
LMS Administration (registration, upload data) ELEL LL
LMS Operations/Hosting
LLLEL
Learner Support
LELLEL
Custom Content Development LEL
LEL
0 20 40 60 80 100
Q,';#'-(7QN %$Q>;#'-(7
Q:H'RQ·W:RQ·W2XWVRXUFH7KLV)XQFWLRQ

>%'7D$%(
Instruction/Facilitation LELLL
LMS Administration (registration, upload data) LELLL
LMS Operations/Hosting JL
LLEL
Learner Support LEJLELL
Custom Content Development L
LLL
0 20 40 60 80 100

Q,';#'-(7QN %$Q>;#'-(7
Q:H'RQ·W:RQ·W2XWVRXUFH7KLV)XQFWLRQ

www.trainingmag.com training NOVEMBER/DECEMBER 2018 | 31

You might also like