Executive Coaching Services Category Procurement Intelligence Report

Development and Training market around the world is undergoing rapid transitions that have a massive potential to influence the way companies strategize for Executive Coaching Services procurement and the cost they have to incur. Labor cost constitutes a key component of L&D providers' OPEX. Factors such as rise in the cost of living, increase in the local wage policies across geographies, and rise in wages and remuneration packages will propel service providers' OPEX and therefore use of automation and other tools will further increase to offset some of the rise in cost of operations.

Several important sectors of the global economy, such as BFSI, Healthcare and Manufacturing are facing serious shortage of adequately skilled workforce. Companies are trying to fill this gap by re-skilling their existing employees in new skills. Similarly, rapid penetration of new technologies across industries (e.g. big data, AI, blockchain, or even data analytics tools) is necessitating re-skilling of employees so that they understand and leverage these technologies to work more efficiently. These factors have improved the demand outlook for L&D services in developed economies and will soon impact the developing economies as well.

Although companies are providing more learning opportunities and resources to employees, actual percentage of employees who have seriously completed such learning activities in still very low. Some of the reasons responsible for this trend are a 'one training fits all' approach, lack of personalization, engagement and demonstration of benefits in an employee's current work profile. Companies as well as L&D suppliers have realized these challenges and are coming up with solutions such as gamification and L&D delivery through multiple platforms.

Sometimes, procurement functions are unable to timely alter their practices while responding to market conditions. Industry experts acknowledge that periodically reviewing procurement best practices and adopting learnings from across procurement categories can help procurement teams respond to market needs in a more agile way. This report combines our experience of other categories with Executive Coaching Services procurement insights and hand picks best practices that can work for category managers delving in this market.

For example, Buyers can collaborate with their suppliers based on a reward-sharing basis. This can be done by providing special recognition to them at the annual meetings of buyers for high performance or mentioning their brand name on own websites.

Buyers should prefer to collaborate with service providers that offer one-stop solutions for L&D to avail significant cost savings through L&D consolidation. This includes learning planning and curriculum design, custom content design and development, user and administration training, and content management services.

Blended learning solutions are a mix of instructor-led learning and web-based learning. These solutions aid buyers to reduce training implementation costs and enhance the effectiveness of training. Hence, buyers must collaborate with service providers that offer blended training solutions.

Executive Coaching Services procurement managers also need to proactively identify and mitigate potential risks that can arise in the supply chain or contracts for Executive Coaching Services procurement. Some examples include: