Why training is a critical component in your outsourced operations

As recessionary fears stalk most markets in 2023, improving operational efficiency and controlling costs will become even more important for businesses. However, this does not mean compromising on quality or results, which is our core philosophy. We help clients achieve this by providing customised, end-to-end solutions to help them build remote teams, both for client facing and operational functions. 

A key part of our offering is that we manage the full life cycle of building teams in an offshore remote or hybrid setting: recruitment, training, and support. In this article, we want to highlight the often under-appreciated value of the training component in outsourcing success, by first clearing up some misconceptions around it and then laying out its multiple benefits for companies. 

Three myths about outsourcing training 

While there are many inaccurate assumptions, we think these three are the biggest ones, and need to be debunked. 

#1: Strategic activities are difficult to outsource

In many instances, this is used as an excuse not to outsource any business function. It is true that the internal leadership team in a company will always be responsible for guiding its overall direction, as it should be. However, this does not preclude partnering with an external entity to determine where value can be added, in any business function. At Bettersource, we ensure this by collaborating closely with clients at the start of their offshore team building journey, to understand exactly what their training strategy and goals are, along with any potential challenges.   

#2: Outsiders can never learn everything about a company

This is true, but not a problem for outsourcing training. The right partner needs to know the right things about their client’s business, not everything. With close collaboration and frequent feedback, you can effectively transfer key knowledge about your company culture, products and services, and customer base to your offshore team. This is why companies have been outsourcing parts of their training programmes for years, working with training professionals and subject matter experts, to put together learning solutions that directly address business needs.  

#3: Outsourcing training means losing control 

This may sound counterintuitive, but having an external partner to fulfil training needs can actually bring more control for the company. This is because training is not an activity that takes place in any one department or function, and therefore its management internally can become quite a challenge. Working with an outsourcing provider that specialises in training provision can actually bring order and a single point of accountability, as well as an easier way to manage costs and quality. 

Six reasons to outsource training

With these ill-conceived notions addressed, let’s delve into how companies can actually benefit from outsourcing some or all of their training requirements. 

Specialisation at scale 

A company’s training needs are diverse, like its potential learners. For example, the sales department will need training in customer relationship management and negotiation, while the customer success folks always need to be updated about every little product or service detail. Meanwhile, the accounting department will require regular updates on changes to relevant financial and accounting rules and laws. And outside the organisation, partners such as resellers and distributors need regular technical training on product knowledge.

Managing these diverse training needs simultaneously can be a daunting challenge, and hinder organisational growth. Partnering with an outsourcing provider for the training component allows a company to deliver customised and optimised training programmes for all its teams, executed with much more efficiency and at a higher frequency. This, in turn, allows for faster scaling up without compromising on quality.

Speed 

Broadly speaking, if a company is operating under any time constraints (which is almost always the case), outsourcing is a terrific avenue to get the job done quickly and efficiently. This applies to training as much as any other function. Service providers who specialise in training are already fully equipped with the right strategies and tools to get programmes implemented quickly, and at scale. This helps companies onboard new hires faster, and thus increase the speed to market, for example through quicker deployment of sales teams. Simply put, outsourcing training can allow businesses to reach their customers faster than the competition.  

Cost and time savings 

It may not sound obvious, but outsourcing is the more cost-effective way to train teams. The payroll costs incurred, by establishing an internal team to develop and deliver training programmes, are often greater than seeking external support. This is because outsourced training arrangements are typically flexible, and thus help companies avoid large fixed costs. For example, we include pre-employment training of offshore teams in the overall menu of offered services to our clients.  

Having an external partner to take care of training also frees up staff time internally. Whether it’s developing or delivering training, companies can spend a significant amount of time on it. According to research published in 2020 by the United Kingdom’s Department for Education, companies can cumulatively spend up to eight days per year on training. By outsourcing training development and/or implementation, companies can give back time to internal employees to focus on other critical business needs.   

On-demand expertise

Knowledge management and learning are high on the priority list of most companies, for obvious reasons. But in practice, most feel ill-equipped for the constant reinvention and iteration required to keep their training materials and tools updated for future needs, often lacking the internal resources required to achieve this.

By outsourcing training management to an external expert, you can access a wealth of relevant insights and experience instantly, accumulated by the service provider over many years by working with companies in various industries. This unique vantage point allows service providers to not only deliver training programs in the most effective and efficient manner, but also offer actionable advice on improving training design.     

Improved business performance 

Training can improve teams’ skills and knowledge, which can lead to increased productivity, improved quality of work, and higher customer satisfaction. This in turn can lead to increased sales and revenue for a business. According to research by Deloitte conducted on the Australian market, in 2022, on average a 1% increase in learning and development expenditure per employee was associated with an 0.2% increase in business revenue in the same year. In other words, every $1 invested per employee was associated with an additional $4.70 in business revenue. Training can also generate significant non-quantitative benefits, such as boosting employee morale and retention, which can have a positive impact on the bottom line. As discussed above, this is done in a much faster and cost-effective manner if companies work with external training experts.  

Risk mitigation 

A structured approach to training is essential for companies to protect themselves against a host of business risks, and outsourcing to specialists can be an effective way to achieve this. For instance, proper training is necessary to help employees understand and adhere to the laws and regulations related to their work, to reduce the risk of non-compliance and potential legal action. Similarly, employees need to be trained in professional conduct and customer service to maintain a positive reputation for the company, and reduce the chances of damage to the company’s image. 

To round off, a training outsourcing partner can optimise business results for its clients in three main ways: train teams quickly in a specialised way at scale, help improve business results, and provide protection against myriad risks. What makes Bettersource unique is that we combine the recruitment, training, and support for offshore teams in a single offering, that clients can customise. If you would like to discuss your organisation’s talent and training needs, we would love to hear from you.