e-Learning Outsorucing Done Strategically

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Why and how should you outsource your e-Learning development?

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  • Cultural –reluctance to raise issues
  • Key is to highlight – that with offshoring the internal efforts (i.e. cost) in the areas of subject matter assistance and project management may increase, but overall cost of development goes down. Eventually – the internal efforts may as well reduce, given the offshore team takes time to understand client’s business and processes.
  • e-Learning Outsorucing Done Strategically

    1. 1. Expanding Learning DevelopmentCapabilities: Client logo hereGlobal Outsourcing Done Strategically PRESENTED BY: David Wentworth, Sr Analyst, Brandon Hall Group April, 2012
    2. 2. Agenda• The Business Process Outsourcing Landscape• Offshoring destinations and advantages• Outsourced content creation framework• E-Learning Offshoring Best Practices
    3. 3. Offshoring vs. Outsourcing Outsourcing Offshoring HomeshoringCaptive Nearshoring InsourcingCenter
    4. 4. Offshoring is Booming Again Worldwide demand for HR business process outsourcing services will grow from $30.4 billion in 2010 to $38.6 billion in 2015. Payroll services will comprise the largest amount of spending, whereas benefits administration and hiring and recruiting outsourcing will grow the fastest. Gartner
    5. 5. Destination: e-Learning Source: ValueNotes Research Report: e-learning Outsourcing
    6. 6. Offshoring Drivers• Cost• Access to technology• Access to expertise• 24 hour work cycle• Presence in global markets
    7. 7. Offshoring DriversSource: Offshoring of Software Development, Kramer, Dedrick & Dunkle, 2010
    8. 8. Offshored Content Creation Risks• Loss of content control• Quality concerns• Security• Infrastructure• Scope/cost creep• Cultural mismatch• Political unrest
    9. 9. Cost Savings Statistics  Cost Saving Stats for Turnkey Projects (1 hour e-Learning) US Effort Offshore Effort US Cost India Cost 45 3500 40 3000 35 2500 30 25 2000 20 1500 15 1000 10 5 500 0 0  Roughly 50% to 60% savings (McKinsey & Company)  US Cost vs. Offshore Cost: $18,582:$7,136Source Citation: Chapman, B. (2010). How Long Does it Take to Create Learning? [ResearchStudy]. Published by Chapman Alliance LLC. www.chapmanalliance.com
    10. 10. Cost Savings Statistics  Cost Saving Stats for Production Projects (1 hour of e-Learning) US Effort Offshore Effort US Cost India Cost 45 3500 40 3000 35 2500 30 25 2000 20 1500 15 1000 10 5 500 0 0  Roughly 35% to 45%  US Cost vs. Offshore Cost: $18,582:$11,540Source Citation: Chapman, B. (2010). How Long Does it Take to Create Learning? [ResearchStudy]. Published by Chapman Alliance LLC. www.chapmanalliance.com
    11. 11. Cost Savings StatisticsCost Saving with Offshore Development (24 hours of asynchronous online) US Cost India Cost 80000 72000 70000 57600 57600 60000 50000 40000 36000 34560 36000 27000 30000 21600 24000 20736 18432 20000 12000 12096 14400 11520 9216 7516.8 10000 4608 5376 4608 0$332,280 vs. $ 154,588 (total saving = $177,692)US Cost vs. Offshore Cost: Savings of 55%
    12. 12. International Service Level Agreements Milestones & Deliverables SLA Maintenance Intellectual Property Rights Changes to Clauses Terms post Execution Indemnity & Confidentiality  Tasks & Responsibilities (Provider) Legal and Financial Aspects Legal  Tasks & Responsibilities (Client) IP laws Service Level Break-Down Labor laws  Service Window Calamities  Service Monitoring Political unrest  Contingency Natural disasters  Performance  Costs  Project Fee  Security  Unit Fee (For Recurring / Change Orders)  Reporting  Payment terms and milestones  Personnel
    13. 13. Offshoring Process Flow DISCIPLINES Assessment Planning Build Benchmark Operation P R O J E C T M A N A G E M E N T O F F I C E (P M O) GovernanceInfrastructure Staffing Human Resource Management Delivery Continuous Improvement
    14. 14. Offshoring Process Flow Execution . • Client Kick-Off . • Instructional Design . • Storyboard Development • Client SB Review • Production • QA & Testing • BETA • Client Review • BETA Fixes • Gold
    15. 15. Vendor Selection Due Diligence• Create a short list of providers• Develop use cases• Scripted demos• Talk to current customers• Write the RFP• Evaluate the proposals
    16. 16. Key Considerations• Build business case – Cost – Strategic focus – Quality• Identify stakeholders• Selection team, implementation team, governance team• Length of Term• Service level agreements• Benchmarks• Prepare for backlash• Clear, consistent, and continuous communication
    17. 17. Thank YouFor e-Learning Offshoring please contact G-Cube at info@gc-solutions.net or +91-120-4122228. Visit: www.gc-solutions.net

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