Outsource Training Department vs. Company in House Term Paper

Pages: 20 (5399 words)  ·  Style: APA  ·  Bibliography Sources: 4  ·  File: .docx  ·  Topic: Business - Management


The focus of this work are the advantages and disadvantages associated with outsourcing training for a telecom company and examination of which of these two methods of training are the most viable for today's company. This study reported has been conducted through a qualitative review of literature in this area of study combined with gathered facts in data relating to the costs associated with information technology training through outsourcing as compared to in-house training methods. This study finds that outsourcing training for information technology is more effective, more efficient, and cost less than in-house training provisions.




The objective of this work is to examine outsource training vs. company in-house training for a telecom company. The pros and cons of each method of training will be examined and a determination of which method of training is superior. Lastly, this work will after determining the superior method training in the comparison of outsourcing of training or in-house training specifically through providing information relating to how that training would be undertaken by the company.


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There are many factors to consider by today's telecom company when attempting to determine the most effective method of administering training to its employees. in-house training has benefits associated with this type of training however, outsource training has benefits as well. The work of Mills (2003) entitled: "Outsourcing Can Drive Profitability in Telecom's Tough Times" states that some of the factors that must be considered include those of "costs," "the business model strategy...development partnering, time and timing, customer value, manageability, geography, credibility and track records among other additional factors. (Paraphrased)


Term Paper on Outsource Training Department vs. Company in House Training Assignment

TCO - Technology's total cost of ownership. (Stein and Osten, 2005)

HR/BPO - Human Resources Business Process Outsourcing

HRIT - Human Resources Information Technology


Limitations of this study exist in the available timeframe for conduction of research however these limitations have been overcome to a great degree through a review of extensive literature in this area and in terms of the most recent updates available relevant to this study.




The methodology utilized in this study is one of a qualitative and quantitative nature in that the material reviewed in the literature review has been qualitative in a descriptive and comprehensive study of material in this area of study. Quantitative review has been conducted through review of cost and savings effects from other case study reporting which is reviewed in this study.


The advantages of outsourcing training for the company are cost-savings, savings in training time, and more effective and efficient business processes. Integration of HR processes and specifically training needs integrated with other processes of HR are being realized in integrated HR performance management suites, which can be utilized by the organization in combination with other outsourced training processes in aligning the organization toward its goals and in reduction of costs associated with information technology training.


There are no inherent disadvantages noted in outsource training for information technology training needs of the company unless the software utilized by the organization is so diverse and lacking in integration that specific in-house training needs are created by that lack of integration of the company's business processes and information technology applications.




Integration is acknowledged widely as the enabler of efficiency and effectiveness in terms of a company's information technology solutions. Studies have demonstrated as is shown in the following literature review that computer-based training initiatives require half the time to teach the same amount of information, or in other words, forty hours of information related in a class-based instructor-led classroom could be learned through computer-based training of approximately 20 to 24 hours. Additionally, research demonstrates that there is a considerable amount saved in training expenses through the company utilizing outsourced computer-based training programs.

New technology for HR performance management, in the form of integrated HR management suites is further reviewed in the following literature review. These types of management suites allows for integration of all HR management functions and enables a simpler and more effective process of management of employees which includes aspects of employee training. The effective and efficient management of HR training needs can only be realized at the present through a combination of in-house and outsource training provisions although integrated training solutions through outsourcing are the primary choice among today's companies as will be shown as well in the following literature review.




The work of Stein and Osten entitled: "Determining Whether to Outsource: It is Time to Bring in Some Outside Help?" states that "outsourcing is the practice of using outside vendors, consultants and other service providers to plan, implement, or evaluate an organization's technology needs." (2005) Decisions to outsource technology training is stated by Stein and Osten to be under the conditions as follow: (1) the organization is already committed to a tremendous amount of work and cannot dedicate the amount of staff time necessary to handle a technology project in house; (2) the organization has available time but does not have staff with the required technical expertise to scope out and properly implement the technology project; (3) the technology's total cost of ownership (TCO) is lower when outsourcing; (4) the organization needs the technology project implemented quickly and cannot take the time to retrain staff or wait for staff time to become available; and (5) the organization needs a variety of technology projects implemented, and outsourcing to a vendor offers access to a wide range of technology expertise. Stein and Osten state that these types of resource allocation "...managerial, and Human Resources issues are not unique to technology projects, and would also be present on projects such as program, work, public relations, or fieldwork, outsourcing technology work raises a set of issues..." which are stated by Stein and Osten to include the issues as follows: (1) Even when a technology project is outsourced, an in-house project manager or team will need to manage the relationship with the vendor or consultant; (2) When a technology project is outsourced, there is often a cash cost associated with that contract. That cash outlay should be properly budgeted. Some contracts require an upfront payment, while others may have ongoing monthly or quarterly costs; (3) When outsourcing a technology project, an organization must identify an appropriate vendor or consultant to do the needed work. This task often requires writing a Request for Proposal (RFP) so that vendors and consultants can submit bids. Depending on the size of the technology project, the RFP process itself can be time-consuming, and may even require the help of a consultant to help identify bidders and review their proposals; and (4) an organization should have a contract with the vendor or consultant to clearly specify the scope of services, the cost, how contract disputes should be addressed, and how the contract should end. (Stein and Osten, 2005)

It is necessary according to Stein and Osten (2005) to consider the following questions: (1) What is it about the current business system that needs improved? (2) How does the current system operate and what are the different steps in the new system and who all is involved in making this system work? (3) What are the parts of the system that may benefit from a technology solution? (4) a need exists to be very specific and detailed in understanding what will work better and what the results from the improvements will be.

In addition, necessary for consideration is whether the company is seeking specific technical expertise or skills and someone who has the capacity to advise the company on the options. Considerations for in-house vs. outsource training include the following:

If you have available staff but their skill sets are not the right fit for the technology project, is retraining a possibility? Some technology projects are more easily suited than others to staff retraining. For example, maintaining a Web site with specialized software is typically something that an existing staff person can be retrained to do. However, installing and maintaining an office computer network may be too complex;

Are there upcoming opportunities with staff changes or new hires that would allow the agency to acquire staff with new skills? This option would allow the agency to create a new position (either permanent or temporary) to accomplish its technology goals;

Would working with an outsourced provider bring a level of skill to the organization that can be transferred in-house for future benefits?

How would outsourcing affect the speed at which you implement the improvements? Is it important that the improvements be made quickly or could they be phased in over time?

What are the costs, financial and staff time of outsourcing vs. going in-house? (Stein and Osten, 2005)

The work of Marc Osten (2001) entitled: 'Total Cost of Ownership" relates that the components of owning and… [END OF PREVIEW] . . . READ MORE

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