In-House Vs Outsourcing: 3 Reasons Why Tailored Training Makes Financial Sense

In-House Vs Outsourcing: 3 Reasons Why Tailored Training Makes Financial Sense
Summary: Companies spend billions of dollars per year on internal corporate training. The cost of such training programs for employees can be the equivalent of hiring a dozen or more new employees for many businesses. Thus, corporate training can be a significant expense, and one that an organization might want to look at offshoring to a custom tailored training program that utilizes eLearning.

ROI-Boosting Benefits Of Custom Tailored Training

In this article, we’ll do a deep dive into why companies make the decision to outsource training programs, ways to overcome any disadvantages inherent in tailored training, and some tips on how to pick the best training provider for your corporation’s particular needs.

eBook Release: eLearning 101: How To Create The Perfect Curriculum For Your Company
eBook Release
eLearning 101: How To Create The Perfect Curriculum For Your Company
Corporate training can be a significant expense. Should your organization look at offshoring to a custom tailored training program that utilizes eLearning?

Top Outsourcing Perks To Consider

To start, here are a few reasons why one might make the decision to outsource their company training programs to a third party or external supplier:

The Cost

From the perspective of an executive, training expenses are often considered a necessary expense of doing business. But those necessary expenses can hurt. Many organizations have found that the best way to eliminate these costs is by outsourcing their training to third party eLearning programs, which often saves money in other areas due to the reduction in overhead.

Industry Trends

As industries evolve due to overwhelming competition, businesses need to stay agile and adaptive in order to survive. The global marketplace is an ever-changing landscape, so it’s imperative for companies looking to succeed in today’s economy to train their workforce with new skill sets and tools. One way you can do so is by outsourcing your training to fast-moving eLearning programs rather than attempting to fulfill them in-house, allowing your company to move faster and accomplish more.


For small to mid-sized companies, in-house training is often not as effective as it could be because in-house trainers are usually also full-time employees of the company. Most of the time, they have other job duties in addition to their training. Outsourcing your training programs allows you to hire experts that specialize in your field because they’re focused solely on your company’s training needs.

Offshore outsourcing services can be better and cheaper for your company’s training program needs than using full-time employees or executives in-house. Through eLearning, experts from different parts of the world can provide you with information learned from their own experiences with different cultures and markets, giving you valuable insight and improving the effectiveness of your training programs.

Additionally, other benefits of having a company outsource the training of its employees include cost-effectiveness, time-efficiency, and the ease with which you can hire trained professionals for training instead of employing full-time trainers or relying on costly in-house trainers.

Overlooked Benefits Of Tailored Training

Here are some other little-known benefits of outsourcing that we may not have covered:

Opportunities For New Business

Outsourcing your company’s training program to offshored eLearning companies gains you access to new markets. You’ll receive training from fundamentally different places and cultures, and that will give your workforce a variety of skills that help qualify them to serve clients with different needs and objectives.

Training Flexibility

When it comes to outsourcing your company’s training program, flexibility is your friend. Depending on the type of work that is being outsourced, businesses can handpick the right eLearning providers, choose when classes are offered, and decide on what technology will be used in the process.

Time Effectiveness

Outsourcing also allows you to spend more time in other aspects of the business to maximize your ROI. For example, if you’re in charge of the sales team and would normally be responsible for training, outsourcing will multiply your time effectiveness by allowing the majority of the low-level training to occur via eLearning. You can then touch up on specifics as needed in-person.

Outsourcing 101

Before we go further into how to offshore your program and the advantages inherent in the process, what does it mean to outsource training in the first place?

Outsourcing (or offshoring) your training program is a modern corporate strategy where a business will hire third parties who specialize in training to either physically come into the office and deliver education, or do so via eLearning platforms that can help reduce overhead expenses. There are many reasons why outsourcing your training program can be a boon for your business, and we’ve mentioned many of them above, but to be clear - outsourcing your training can lead to a significant improvement in the efficiency and effectiveness of your employees and staff members.

Outsourcing training is a significant and powerful upcoming trend for many small and mid-sized corporations. As the world grows increasingly globalized, more and more business duties are being taken care of by smaller, purposeful companies in other countries. The businesses that learn to engage in effective offshoring practices for their training now will receive a massive advantage in the decades to come as the rest of the market catches up.

Business Advantages To Outsourcing Training

One of the main advantages in training outsourcing is that it enables you to be scalable and flexible when there is an increase in demand. If there are any unexpected changes in business or market conditions, you will not need to worry about the logistics of running training internally - assuming course content is done by a third party provider - since they handle everything from course material development and delivery to booking venues and providing instructors for eLearning.

This results in less time being taken away from other, more immediate-ROI activities because employees get to attend their training periods virtually via eLearning and over a longer period of time. Additionally, by using a third-party provider, many companies receive significantly better value for their money. External suppliers get to spend more time focusing on developing the most effective courses for your needs rather than internalizing minutiae on what it takes for the day-to-day operations of a business.

In this way, outsourcing your training can also lead to a significant improvement in the quality of your employee training programs. When you delegate the responsibility for training to an eLearning supplier, you have an opportunity to work with professional instructors who can design an effective and engaging curriculum, and who have already helped thousands of people improve their business outcomes at low cost. What’s more, outsourcing the responsibility to manage your training programs can also free up staff that are currently responsible for this task.

However, it would be wise to consider a few distinct disadvantages you must consider if you decide to outsource training and development. These include reduced job security for current in-house trainers, a possible reduction in quality (depending on whether you find the right eLearning provider), and the fact that you’re reliant on a third party for training. However, the benefits often vastly outweigh the negatives, and these issues are unlikely as long as you adhere to a few simple principles.

Look For A Range of Expertise

Outsourcing your training programs allows for outside organizations with myriad expertise that can be tapped into and utilized with relative ease and minimal difficulty. When looking for companies, ensure you’re filtering based on a range of expertise. Don’t get pigeonholed into one specific skill, like accounting management - try and find a company (eLearning or otherwise) that offers a wide array of training services so that you get to build relationships with them over time and improve the quality of your training. By outsourcing this process, you can tap into all sorts of experts that will have no problem getting you what you need when you need it without any hassle whatsoever.

Make Cost A Focus - But Don’t Pick Cheap

When deciding on a training program for your organization, it is important to take the cost into consideration. After all, reduced expense is one of the primary reasons why people go with outsourced eLearning training in the first place.

However, don’t make price your only fixation - eLearning and offshored training have numerous benefits in addition to the reduced cost, and looking at only the money can make you miss the forest for the trees, so to speak. Understand that by outsourcing your training, you’re also getting higher quality results and freeing up operational time, which in and of itself can represent a large financial boon. Make sure the company you’re picking is credible, successful, and reasonably priced.


Ultimately, training outsourcing can lead to both stronger, more resilient (and culturally-compatible) training while saving a significant amount of cost for a small to mid-sized business. Download the eBook eLearning 101: How To Create The Perfect Curriculum For Your Company to discover action points you can follow to launch a custom-tailored L&D strategy for your team. It's a must-read for companies that are weighing the pros and cons of outsourcing and want to learn more about curriculum design from industry experts.

Also, join the webinar to learn how to jump-start your eLearning initiatives by collaborating with a third-party provider!

eBook Release: eWyse
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