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

1. Expanding Learning Development
Capabilities: Client logo here
Global Outsourcing Done Strategically
PRESENTED BY: David Wentworth, Sr Analyst, Brandon Hall Group
April, 2012

2. Agenda
• The Business Process Outsourcing Landscape
• Offshoring destinations and advantages
• Outsourced content creation framework
• E-Learning Offshoring Best Practices

3. Offshoring vs. Outsourcing
Outsourcing
Offshoring Homeshoring
Captive
Nearshoring Insourcing
Center

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. Destination: e-Learning
Source: ValueNotes Research Report: e-learning Outsourcing

6. Offshoring Drivers
• Cost
• Access to technology
• Access to expertise
• 24 hour work cycle
• Presence in global markets

7. Offshoring Drivers
Source: Offshoring of Software Development, Kramer, Dedrick & Dunkle, 2010

8. Offshored Content Creation Risks
• Loss of content control
• Quality concerns
• Security
• Infrastructure
• Scope/cost creep
• Cultural mismatch
• Political unrest

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:$7,136
Source Citation: Chapman, B. (2010). How Long Does it Take to Create Learning? [Research
Study]. Published by Chapman Alliance LLC. www.chapmanalliance.com

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:$11,540
Source Citation: Chapman, B. (2010). How Long Does it Take to Create Learning? [Research
Study]. Published by Chapman Alliance LLC. www.chapmanalliance.com

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. 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. 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)
Governance
Infrastructure
Staffing Human Resource Management
Delivery
Continuous Improvement

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. 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. 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. Thank You
For e-Learning Offshoring please contact G-Cube
at info@gc-solutions.net or +91-120-4122228.
Visit: www.gc-solutions.net