Staff Training & Team Building 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 Staff Training & Team Building procurement and the cost they have to incur. Buyers that have multiple locations under management are increasingly opting for a single supplier who can deliver L&D services in a consistent manner across locations. Often global L&D suppliers are preferred in such cases.

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.

As market conditions become more dynamic and procurement practices get more sophisticated, category managers need to be cognizant of the best practices that work for their Staff Training & Team Building category procurement. The report offers a succinct analysis of Staff Training & Team Building procurement best practices.

For example, 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.

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.

Buyers must engage with service providers that offer bundled and unbundled services. Unbundling of services allows buyers to select the best-fit services as per organizational requirements. In addition, it allows buyers to outsource services such as content development and learning technologies to dedicated players that can offer cost-effective training services compared with traditional training service providers.

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