IT Training | Market, Trends, Growth | Suppliers Analysis

Strategic Sourcing Guide to IT Training Procurement

Overview

Several macro changes in the dynamics of overall Development and Training as well as IT Training procurement trends are poised to change the business practices and procurement thumb rules. Integration of the latest technology in learning requires significant investments and therefore procurement costs are expected to rise for learning modules based on advanced technologies. In the long run, buyers could see stable pricing as suppliers recover their technology cost.

Value-based pricing is rapidly finding favors from buyers as the pricing model of choice for L&D category. This model sets the contract price based on quality and outcome of the training and therefore encourages providers to design more effective training modules.

The market for e-learning services is exploding in developed and developing economies alike. L&D possibilities enabled by gamification, LMS apps and new content delivery methods have impacted the procurement of IT Training in a massive way.

Category managers need to take note of the potential of these developments and reassess the changes required in their procurement practices.

IT Training Procurement Best Practices

IT Training procurement best practices are moving towards a level of sophistication which is typically seen in traditional procurement categories. Category managers now have an attractive opportunity to adapt the best practices seen within this category as well as those being leveraged in other non-related categories. This report summarizes the best practices picked from across multiple categories that could work well for category managers involved with IT Training procurement strategy.

For example, 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.

Category managers should evaluate the RFQ's from service providers against the industry benchmarks as this helps buyers to gain a better understanding of the market prices and save costs.

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Risks in IT Training procurement

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

Loss or misuse of sensitive information of buyers, such as data on workforce, clients, and other vendors, is a potential risk
Trainers are dependent on the training materials/content provided by the training firms that may or may not be well-versed with the latest advancements in the market. This can lead to trainees receiving outdated information and techniques. Absence of updated information and materials/content and lack of reviews by subject-matter experts can impact the effectiveness and accuracy of the L&D program
Procurement without consulting the actual users of IT Training may result in a mismatch in expectations of the buyer's internal stakeholders versus the actual contract executed

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Who should read this report

The report is intended to serve as a one-stop reference guide for IT Training procurement strategy and offers a perfect blend of category basics with deep-dive category data and insights. Therefore, it is ideal for category beginners looking for “IT Training: Procurement Report 101” as well as for category experts actively tracking the global IT Training procurement market.

You may have just initiated your research to design a winning IT Training procurement strategy, or you may be a category expert looking for strategic insights and updated data.Either ways, the report has your requirements covered.

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Key questions on IT Training procurement answered by this report

Procurement decisions can prove to be costly in the absence of careful deliberation and evaluation of every available option. In fact, more than 90% of the decision makers we work with acknowledge that timely availability of up-to-date category intelligence can help them make better purchasing decisions. More than 80% of them believe that in-house category intelligence needs to be updated periodically to achieve full benefits. If you have read so far, we are quite sure you agree!!

The IT Training procurement report helps take more informed decisions by placing all the critical information and advice at the fingertips of a decision maker. It also specifically answers some of the key questions that we have been routinely asked during our industry outreach initiatives:

What is the spend potential in the IT Training market?
What is the correct price to pay for IT Training? What are the key trends and factors that influence current and future pricing?
Which selection criteria are the most important for IT Training Suppliers Market?
Who are the top IT Training suppliers? What are their cost structures?
Which negotiation levers can reduce IT Training procurement cost ?
What are supplier margins in IT Training market?
What are the best practices for IT Training procurement and what are the potential risks?

SpendEdge Insights has helped procurement professionals and sourcing teams manage multiple spend areas and achieve more than $2 billion in savings. Activate your free account today!

IT Training Category Insights: What is inside

The IT Training market report offers a complete picture of the supply market and analyzes the category from the perspective of both buyers and suppliers. Analysis of the category trends, procurement best practices, negotiation levers and overall category management strategy advisory are interspersed with in-depth data and commentary on spend outlook, pricing ecosystem and supplier landscape drilled down to a region-level coverage.

Data

A key highlight of this report is the in-depth outlook created on IT Training procurement spend and pricing trends. The report further delves deep into the aspects of cost structure, total cost of ownership and supplier margins for IT Training. A dedicated section to supplier profiles and evaluation helps decision makers cast a wider procurement net and identify gaps in existing relationships.

Insights

Along with specific category and supplier intelligence, the publication also includes curated insights on IT Training market trends, price influencers and inherent risks. These insights help the decision makers prepare for market shaping trends in advance and create alternative strategies for changes in the market conditions.

Advisory

Additionally, the report also advises on the best practices and strategies to manage the IT Training category efficiently. Negotiation levers and opportunities are explained in detail along with quantification of their potential. Benchmark KPIs for supplier and buyer performance management are also aggregated to better organize the category objectives. Other themes of advisory include ideal procurement organization structure, enablers to achieve KPIs or category objectives and ideal SLAs to have with suppliers.

Category Ecosystem

Buyer and supplier ecosystem
Competitiveness index
Buyer and supplier power
Threat of new entrants and substitutes

Global and Regional Sourcing Insights

Category spend
Spend growth
Dynamics
Opportunities

Pricing and Cost Analysis

Pricing outlook and data
Drivers of pricing
Cost structure and inputs cost
Total cost of ownership
Pricing models and margins

Cost Saving Opportunities & Negotiation Strategies

Buyer and supplier side levers
Quantified cost saving opportunities
Negotiation strategies and quantified outcome

Procurement Best Practices, Strategy and Enablers

Procurement excellence
Sustainability and innovation
KPIs and category enablers
Risk management and outsourcing

Vendor Analysis

RFx essentials and selection criteria
SLAs
Supplier evaluation metrics
Detailed supplier profiles

Our research is complex, but our reports are easy to digest. Quantitative analysis and exhaustive commentary is placed in an easy to read format that gives you an in-depth knowledge on the category without spending hours to figure out “what does it mean for my company?”

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Category Research Framework

SpendEdge presents a detailed picture of IT Training procurement solutions by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key category influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.